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2007 House Bill 4412: Ban insurance credit rating discounts
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- Introduced by Rep. Tim Melton (D) on March 6, 2007, to prohibit insurance companies from offering premium price discounts on the basis of a person having a good credit history or credit score. Insurance companies would be required to take the aggregate value of all such discounts currently offered and lower all rates by amount equal to that aggregate value. In other words, insurance customers who currently pay less because good credit histories would experience a price hike, and those who do not have good credit histories would get a slight price cut.
- Referred to the House Insurance Committee on March 6, 2007.
- Reported in the House on April 10, 2008, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
- Substitute offered in the House on April 22, 2008, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute failed by voice vote in the House on April 22, 2008.
- Substitute offered by Rep. Goeff Hansen (R) on April 22, 2008, to replace the previous version of the bill with one that regulates the use of credit scores in pricing individual insurance policies, but does not ban their use. Note: The Melton amendment essentially canceled out this version and restored the prohibition to the bill that ultimately passed the House. The substitute passed by voice vote in the House on April 22, 2008.
- Amendment offered by Rep. Tim Melton (D) on April 22, 2008, to replace the Hansen-substitute's regulation of using credit scores in pricing individual insurance policies with the orignal bill's prohibition on their use. The amendment passed by voice vote in the House on April 22, 2008.
- Amendment offered by Rep. Dave Hildenbrand (R) on April 22, 2008, to tie-bar the bill to House Bill 5565, meaning this bill cannot become law unless that one does also. HB 5565 would regulate but not prohibit the use of credit scoring in setting insurance rates. The amendment failed by voice vote in the House on April 22, 2008.
- Referred to the House Insurance Committee on March 6, 2007.
- Passed 57 to 49 in the House on April 22, 2008.
Who Voted "Yes" and Who Voted "No" - Received in the Senate on April 24, 2008.
- Referred to the Senate Economic Development and Regulatory Reform Committee on April 24, 2008.
Most Recent Comments
1) "no vote explanation" by Admin003 on April 27, 2008Rep. Agema, having reserved the right to explain his protest against the passage of the bill, made the following statement:
“Mr. Speaker and members of the House:
This bill will increase the rates for most and subsidize rates for those that are at a higher risk. Presently rates can be reduced but can’t be raised via this scoring. This will cause rates to sky rocket.”
Reply
Rep. Knollenberg, having reserved the right to explain his protest against the passage of the bill, made the following statement:
“Mr. Speaker and members of the House:
I have concerns with HB4412. If we support this bill the vast majority of Michigan residents will see their premiums sky rocket.
Insurance scoring is a tool that rewards individuals and families for their low risk behavior. These are the facts: the better credit that individuals and families have, the less likely that they will make claims on their insurance.
It makes sense that fewer claims should be rewarded through lower premiums. I reiterate that if we support this bill the vast majority of Michigan residents will see their premiums go up.”
Reply
Again irresponsible democrats think that responsible people should pay for the do-nothing slackers, their typical socialist agenda.
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