Governor, Department of Insurance mandate insurer rebates

Governor, Department of Insurance mandate insurer rebates | Insurance Business

Governor, Department of Insurance mandate insurer rebates

Michigan Governor Gretchen Whitmer and the state’s Department of Insurance and Financial Services (DIFS) have ordered all auto insurers operating in the state to either issue refunds or premium waivers to consumers.

The premium relief measures are being mandated to account for the reduction in driving activity during the COVID-19 pandemic.

“Michiganders have been staying safe and staying home and they should see the benefit in reduced auto insurance rates during the COVID-19 pandemic,” Whitmer said in a statement. “Every family is feeling added financial pressure due to this virus, and this order will provide some much-needed relief to drivers.”

According to the DIFS Order No. 2020-10-M, insurers have until June 10, 2020 to submit filings that detail the refund or premium waiver amount, information on how that amount was determined, and how consumers will receive the premium relief measures.

The order also requires insurers to properly communicate to customers about the refund, as well as additional options for those with long-term changes in their driving habits.

WWJ 950 reported that the order does not stipulate a minimum amount that insurers are required to refund their customers.

“This order will ensure all insurers are issuing appropriate refunds or premium waivers to their customers,” commented DIFS director Anita Fox. “Consumers may realize additional savings by modifying their policies to reflect their current driving habits. Drivers should contact their agent to discuss garaging a car or making other changes to save on their premiums.”