HOUSE BILL No. 4334

 

February 17, 2005, Introduced by Reps. Leland, Cushingberry, Accavitti, Clack, Tobocman, Hunter, Murphy, Gillard, Hood, Alma Smith, Plakas, Bieda, Miller, Gonzales, Farrah, Adamini, McConico, Zelenko, Virgil Smith and Lemmons, III and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 2110a (MCL 500.2110a), as added by 1996 PA 514,

 

and by adding section 2402a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2110a. (1)  If  Except as otherwise provided in

 

subsection (2), if uniformly applied to all its insureds, an

 

insurer may establish and maintain a premium discount plan

 

utilizing factors in addition to those permitted by section 2111

 

for insurance if the plan is consistent with the purposes of this

 

act and reflects reasonably anticipated reductions in losses or

 

expenses. This section does not affect benefits or obligations

 


required under chapter 31. Nothing in this section authorizes an

 

insurer to offer or prohibits an insurer from offering premium

 

discount plans concerning any of the following:

 

     (a) Health care services, health care providers, or health

 

care facilities.

 

     (b) Automobile repair providers.

 

     (c) Materials used in the repair of an automobile.

 

     (2) An insurer shall not establish or maintain a premium

 

discount plan based in whole or in part upon an applicant's or

 

insured's credit history or lack of credit history.

 

     Sec. 2402a. Home or automobile insurance written on a group,

 

franchise, blanket policy, or similar basis shall not be rated, in

 

whole or in part, upon a group member's credit history or lack of

 

credit history or upon the credit history or lack of credit history

 

of the group as a whole.