Insurance: no-fault; penalties for lapse of insurance policy; eliminate. Amends secs. 2116b, 2118 & 2120 of 1956 PA 218 (MCL 500.2116b et seq.) & repeals sec. 2116a of 1956 PA 218 (MCL 500.2116a).
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill eliminates penalties for lapses in auto insurance coverage and modifies underwriting rules for insurers. Specifically, it removes the requirement that insurers refuse to insure someone solely because they previously failed to maintain insurance, except under limited circumstances. The bill also clarifies underwriting rules related to vehicle modifications, household use, and other factors, while allowing insurers to establish separate rating plans and affiliated insurer policies.
Key provisions
- Eliminates penalties for lapses in auto insurance coverage.
- Removes the requirement to refuse insurance due to prior lapse.
- Clarifies underwriting rules regarding vehicle modifications.
- Allows insurers to establish separate rating plans.
- Permits affiliated insurers to limit coverage to specific eligible persons.
- Specifies acceptable proof of prior insurance maintenance.
- Defines criteria for underwriting based on vehicle type and usage.
- Addresses underwriting rules related to household use and driver behavior.
Who is affected
- Automobile insurance policyholders
- Automobile insurance companies
- Insurance agents
- Michigan residents
- Vehicle owners
Notable changes
- Replaces existing penalties for lapsed insurance with a more lenient approach.
Bill text
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Document of record
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- Senate Introduced Bill
- Published
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