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Mackinac Center for Public Policy
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2012 House Bill 5782: Mandate insurance rate cuts in depopulating cities
  1. Introduced by Rep. Lisa L. Howze (D) on July 18, 2012, to force auto and property insurance companies to cut renewal rates by 20 percent for residents of a depopulating city (one whose population fell at least 10 percent in the last census, including Detroit), if the average rates in the city are more than 50 percent above the average rates in communities within 20 miles. The bill would also prohibit an insurer from raising the rates of a home or auto policyholder in a depopulating city if the person files a first-time claim. Finally, the bill would impose a $50 million tax on the Michigan Catastrophic Claims Association (MCCA), the reinsurance provider that covers unlimited vehicle accident medical claims above $500,000, and use this money to reimburse insurance companies for the mandated discounts proposed by the bill; money to fund the MCCA comes from mandatory per-vehicle surcharges imposed on all auto insurance policyholders statewide.
    • Referred to the House Insurance Committee on July 18, 2012.

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