September 6, 2017, Introduced by Rep. Kosowski and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2027 (MCL 500.2027), as amended by 1998 PA 26.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2027. Unfair methods of competition and unfair or
deceptive acts or practices in the business of insurance include:
(a)
Refusing to insure, or refusing to continue to insure, or
limiting the amount of coverage available to an individual or risk
because of any of the following:
(i) Race, color, creed, marital status, sex, or national
origin, except that marital status may be used to classify
individuals or risks for the purpose of insuring family units.
(ii) The residence, age, disability, or lawful occupation of
the individual or the location of the risk, unless there is a
reasonable relationship between the residence, age, disability, or
lawful occupation of the individual or the location of the risk and
the extent of the risk or the coverage issued or to be issued, but
subject
to subparagraph (iii). This
section shall does not prohibit
an insurer from specializing in or limiting its transactions of
insurance to certain occupational groups, types, or risks as
approved
by the commissioner of insurance. director. The
commissioner
director shall approve the specialization for an
insurer licensed to do business in this state and whose articles of
incorporation contained a provision on July 1, 1976, requiring that
specialization.
(iii) For property insurance, the location of the risk, unless
there is a statistically significant relationship between the
location of the risk and a risk of loss due to fire within the area
in which the insured property is located. As used in this
subparagraph, "area" means a single zip code number under the
zoning
improvement plan of the United States postal service.Postal
Service.
(b) Refusing to insure or refusing to continue to insure an
individual or risk solely because the insured or applicant was
previously denied insurance coverage by an insurer.
(c) Charging a different rate for the same coverage based on
sex,
marital status, age, residence,
location of risk, disability,
or lawful occupation of the risk unless the rate differential is
based on sound actuarial principles, a reasonable classification
system, and is related to the actual and credible loss statistics
or, for new coverages, reasonably anticipated experience. in
the
case
of new coverages. This subdivision shall
does not apply if the
rate
has previously been approved by the commissioner. director.
(d) Charging a different rate for the same coverage based on
sex.
Enacting section 1. This amendatory act applies to policies,
certificates, and contracts delivered, executed, issued, amended,
adjusted, or renewed in this state, or outside of this state if
covering residents of this state, beginning 90 days after the date
this amendatory act is enacted into law.