Insurer Group Objects to Proposal to Overhaul Michigan Insurance Laws

The Property Casualty Insurers Association of America (PCI) says the Michigan Board of State Canvassers’ approval of a petition for a ballot initiative to overhaul auto and homeowners insurance laws in the state represents an attack on insurance companies.

“This proposal is another example of how insurers operating in Michigan continue to come under attack despite being a major economic contributor and provider of jobs in the state,” said Ann Weber, PCI vice president, in a statement released by the group.

According to PCI, the petition form seeks to cut insurance premiums by 20 percent for auto, home, and business coverage; cut auto insurance premiums for good drivers by an additional 20 percent; base insurance premiums primarily on driving safety record and not on credit history, marital status, territory or other rating factors; give the insurance commissioner the ability to refund premiums deemed excessive; mandate insurers to follow consumer protection laws; prohibit insurers from unfairly canceling coverage; and adopt additional laws to protect consumers among other proposals.

The Michigan legislature has already debated many of the issues cited in the proposal, most recently voting down a bill that would have banned auto insurers’ use of geography as a factor in risk assessment and likely would have resulted in heavy cost consequences for consumers, the PCI says.

“The extreme proposals outlined in this petition would drastically hinder Michigan’s insurance marketplace and would have negative, unintended consequences for consumers,” Weber said.

Source: PCI