HB-4595, As Passed Senate, May 2, 2012
April 28, 2011, Introduced by Reps. Shaughnessy, Opsommer, Glardon, Howze, Roy Schmidt, Johnson, Hooker, Rendon, Kandrevas and LeBlanc and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding section 2154.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2154. (1) Notwithstanding any other law, rule, or
regulation, an insurer that uses credit information shall, on
written request from an insured or insurance applicant, provide
reasonable exceptions to the application of that credit information
on the insurer's rates, rating classifications, or company or tier
placement for an insured or insurance applicant who has experienced
and whose credit information has been directly influenced by any of
the following events:
(a) Catastrophic event, as declared by the federal or state
government.
House Bill No. 4595 as amended May 1, 2012
(b) Serious illness or injury, or serious illness or injury to
an immediate family member.
(c) Death of a spouse, child, or parent.
(d) Divorce or involuntary interruption of legally owed
alimony or support payments.
(e) Identity theft.
(f) Temporary loss of employment for a period of 3 months or
more, if it results from involuntary termination.
(g) Military deployment overseas.
<<(h) predatory lending resulting in the foreclosure of, or commencement of proceedings or an action to foreclose, a mortgage of real property owned by the insured or insurance applicant.
(i)>> Other events, as determined by the insurer.
(2) If an insured or insurance applicant submits a request for
an exception under subsection (1), an insurer may, but is not
required to do, any of the following:
(a) Require a reasonable written and independently verifiable
documentation of the event.
(b) Require the insured or insurance applicant to demonstrate
that the event had direct and meaningful impact on the insured's or
insurance applicant's credit information.
(c) Require a request to be made no more than 60 days from the
date of the application for insurance or the policy renewal.
(d) Grant an exception even if the insured or insurance
applicant did not provide an initial request for an exception in
writing.
(e) Grant an exception where the insured or insurance
applicant asks for consideration of repeated events or the insurer
has considered this event previously.
(3) A law, rule, or regulation relating to underwriting,
House Bill No. 4595 as amended May 1, 2012
rating, or rate filing is not violated by any insurer as a result
of granting an exception under this section.
(4) The insurer shall provide notice to insureds and insurance
applicants that reasonable exceptions are available and information
about how to inquire further.
(5) Within 30 days of the insurer's receipt of sufficient
documentation of an event described in subsection (1), the insurer
shall inform the insured or insurance applicant of the outcome of
his or her request for a reasonable exception. This communication
shall be in writing or provided in the same medium as the request
for a reasonable exception.
<<Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 96th Legislature are enacted
into law:
(a) Senate Bill No. 300.
(b) House Bill No. 4593.
(c) House Bill No. 4594.
(d) House Bill No. 4596.
>>