NO PREMIUM INCREASES DURING TERM OF POLICY

House Bill 4070

Sponsor:  Rep. Tory Rocca

Committee:  Insurance

Complete to 4-29-09

A SUMMARY OF HOUSE BILL 4070 AS INTRODUCED 1-22-09

The bill would amend the Insurance Code to prohibit insurance companies from increasing the premium for an automobile or home insurance policy during the term of the policy.

The only exception to this would be if the premium had been based on materially incorrect information provided by the applicant or insured.

Specifically under the bill, the premium could not be increased once the premium is billed by an insurance company or agent and paid in whole or in part by the insurance customer.

MCL 500.2111b

FISCAL IMPACT:

There is no apparent significant fiscal impact on the State of Michigan or its local units of government.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Mark Wolf

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.