SENATE BILL No. 29

 

 

January 25, 2005, Introduced by Senator SWITALSKI and referred to the Committee on Banking and Financial Institutions.

 

 

 

 

 

 

     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.

 

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) A premium discount plan shall not be based in whole or in

 

part upon an applicant's or insured's lack of credit history.