2024 Senate Bill 708

AI Analysis – Experimental

Senate Bill No. 282, passed by the Senate on February 14, 2024, amends the 1956 Insurance Code of Michigan (PA 218) by adding section 2116c. This section mandates that automobile insurers cannot deny insurance, refuse renewal, limit coverage, charge reinstatement fees, or increase premiums for eligible individuals solely because they did not maintain required insurance for their vehicle in the six months prior to applying, provided they were incarcerated during that time. Applicants must submit a certified statement confirming their imprisonment and that their vehicle was not used in the preceding six months.

SB 708 amends the insurance code of 1956, specifically section 2120 (MCL 500.2120), to refine the underwriting rules and rating plans for automobile insurance provided by affiliated insurers. The bill allows affiliated insurers to establish underwriting rules that ensure each affiliate provides automobile insurance to certain eligible persons, provided that all eligible persons can obtain insurance from one of the affiliates. It also permits insurers to create separate rating plans for different groups of eligible persons, ensuring that all eligible persons can obtain insurance under a rating plan. The underwriting rules must comply with sections 2118 and 2119 and can only be based on specific criteria, such as substantial modifications to a vehicle for speed or acceleration, failure to provide proof of required insurance, refusal to accept a deductible, refusal to pay a minimum deposit, insurance eligibility point accumulation, and the type of vehicle insured. The bill also introduces a modification to section 2116c, adding it to the list of exceptions regarding proof of insurance. The enactment of this legislation is contingent upon the passage of Senate Bill No. 282 and Senate Bill No. 709.

SB 709 amends the Insurance Code to specify conditions under which insurers can refuse or limit automobile insurance, including criteria related to household members' insurance points, vehicle modifications, proof of prior insurance, and other factors, with enactment dependent on the passage of related bills.