Mich. Panel Objects to Rule Banning Insurance Scoring, but Can’t Stop It

The Michigan Legislature’s Joint Committee on Administrative Rules last week voted to object to the Granholm administration’s proposed rule that would ban credit-based insurance scoring and roll back base rates. The move was all but symbolic, however, as the legislature now has only 15 session days to pass legislation overturning the rule and such legislation would surely be vetoed by Granholm anyway.

Office of Financial and Insurance Services Commissioner Linda Watters called the vote “partisan” and a “gift to the insurance industry.” Republican Sen. Mike Bishop, a member of the committee, said he and others voted against the rule to object to the administration’s use of the administrative rule-making process to usurp what they view as the legislative branch’s authority.

The rule is likely to become official in late March and would become effective July 1.