A bill to amend 1956 PA 218, entitled "The insurance code of 1956," (MCL 500.100 to 500.8302) by adding section 2027a.
Prohibits insurance companies in Michigan from using price optimization—setting premiums based on factors unrelated to risk, such as a consumer's willingness to pay—by classifying it as an unfair and deceptive practice.
Co-sponsored by Sens.
Referred to the Committee on Economic and Community Development
Reported with substitute S-1
Referred to the Committee of the Whole
Reported with substitute S-1
Substitute S-1 concurred in by voice vote
1. Amend page 1, line 3, after “optimization” by striking out “in any way”.
2. Amend page 2, line 7, after “expense,” by inserting “resulting in rates that exceed actuarial justifications,”.
The amendment failed by voice vote
Passed in the Senate 34 to 3 (details)
Referred to the Committee on Insurance
Discharged from committee
1. Amend page 1, line 3, after “for” by striking out “an” and inserting “a property and casualty”.
2. Amend page 1, line 3, after “optimization” by striking out “in any way”.
3. Amend page 2, line 5, after “means” by striking out the balance of the line through “time” on line 6 and inserting “a practice to charge based on an insured’s price tolerance that results in rate or premium adjustments that are not actuarially justified and”.
4. Amend page 2, line 9, by striking out all of subparagraph (i) and renumbering the remaining subparagraphs.
The amendment passed by voice vote
Passed in the House 97 to 7 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
