The Michigan legislature has been busy introducing legislation pertinent to insurers.
HB 4907, introduced by Brian Banks, D-Detroit, would ban setting auto insurance rates based on zip code. The bill stipulates that auto insurance rates shall be based only on one or more of the following, depending on type of insurance:
- age of the driver,
- how long a person has been driving
- number of miles driven
- type of use—business, farm, pleasure
- type of vehicle, including power of engine, safety equipment installed
- number of cars insured by the insurer
- number of drivers in a household—however, the number of drivers insured cannot be used as a method of determining marital status
- amount of insurance
- income
- number of dependents
- coordination of benefits
- use of safety belts
- anticipated cost of repairs or replacement
- auto theft prevention devices
- accident prevention training
- substantially at-fault accidents
- convictions
In addition to not using zip codes as a factor in determining rates, insurers would also be prohibited from using gender or marital status in setting rates.
Another bill of interest to insurers is SB 527, sponsored by Rebekah Warren, D-Ann Arbor, would require motorcycle riders to wear helmets. It would also require moped riders under the age of 19 to wear helmets.
