reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-20 - Chapter 20 Unfair and Prohibited Trade Practices and Frauds (500.2001...500.2093) › Section 500.2075 - Fire, Marine or Inland Insurer's Contract in Restraint of Competition Prohibited; Acts by Agent Prohibited; Other Prohibitions.

500.2075 Fire, marine or inland insurer's contract in restraint of competition prohibited; acts by agent prohibited; other prohibitions.
Sec. 2075.
(1) No fire, fire and marine, or marine and inland insurance insurer not organized under the laws of this state, but doing business therein, shall either directly or indirectly enter into any contract, agreement, arrangement, or undertaking of any nature or kind whatever with any other insurer, the object or effect of which is to prevent open and free competition between it and said insurer, or between the agents of their respective insurers in the business transacted in this state, or in any part thereof.
(2) It shall not be lawful for the agent of any fire, fire and marine, or marine and inland insurance insurer not organized under the laws of this state, but doing business therein, to enter into any contract, agreement, arrangement, or undertaking of any nature or kind whatever with the agent of any other such insurer, the object or effect of which is to prevent free and open competition between the insurers represented by said agents in the business transacted in this state, or in any part thereof.
(3) No person or persons as agent, solicitor, broker, surveyor, or in any other capacity, shall transact or aid in any manner, directly or indirectly, in transacting or soliciting within this state, business for any fire, fire and marine or marine and inland insurance company or association not incorporated by the laws of this state, or in any other capacity to procure or assist to procure a fire or inland marine policy or policies of insurance in any company or association which is violating the provisions of this section, or whose agent or agents are violating the provisions of subsection (2) hereof.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-20 - Chapter 20 Unfair and Prohibited Trade Practices and Frauds (500.2001...500.2093) › Section 500.2077 - Creditors; Favoritism of Insurer Prohibited; Construction of Section, Violation, Penalty.

500.2077 Creditors; favoritism of insurer prohibited; construction of section, violation, penalty.
Sec. 2077.
(1) No person shall require, as a condition precedent to the lending of money or extension of credit, or any renewal thereof, that the person, to whom such money or credit is extended or whose obligation the creditor is to acquire or finance, negotiate any policy or contract of insurance through a particular insurance agent or with a particular insurer. No person engaged in the business of financing real or personal property other than motor vehicles or of lending money or extending credit, shall directly or indirectly require that the borrower pay a consideration of any kind to substitute the insurance policy of 1 insurer for that of another.
(2) If an instrument requires that a purchaser, mortgagor or borrower furnish insurance of any kind on real property being conveyed or which is collateral security to a loan, the vendor, mortgagee or lender shall refrain from using or disclosing any such information to his own advantage or to the detriment of the purchaser, mortgagor, borrower, insurance company or agency complying with such requirement.
(3) This section shall not be construed as forbidding the vendor or creditor from exercising a reasonable right to approve or disapprove the insurance selected by the debtor for protection of the property securing the credit or lien, but the vendor or creditor shall not disapprove a policy which contains coverages in excess of the basic coverage required by the vendor or creditor.
(4) Nothing in this section shall forbid any insurer from requiring as a condition precedent for the lending of its own funds that the debtor insure his own life for a reasonable amount with such insurer.
(5) Each violation of this section shall be a misdemeanor, punishable by a fine of not more than $100.00.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1961, Act 153, Eff. Sept. 8, 1961 ;-- Am. 1962, Act 89, Eff. Mar. 28, 1963
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-20 - Chapter 20 Unfair and Prohibited Trade Practices and Frauds (500.2001...500.2093) › Section 500.2078 - Agreements as to Placements of Insurance; Regulations.

500.2078 Agreements as to placements of insurance; regulations.
Sec. 2078.
Except as contained in the policy and the usual agreement for other insurance, no insurance company, insurer, corporation, partnership, or individual shall make any contract or agreement with any person insured or to be insured that the whole or any part of any insurance which is subject to the provisions of chapter 26 of this code (fire and inland marine rates), shall be placed by any particular corporation, partnership, or individual, or be written by any particular company, insurer, agent or any group of companies, insurers or agents. Any contracts made in contravention of this section, shall be null and void.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-20 - Chapter 20 Unfair and Prohibited Trade Practices and Frauds (500.2001...500.2093) › Section 500.2082 - Racial Discrimination by Life Insurers Prohibited; Violation; Penalty.

500.2082 Racial discrimination by life insurers prohibited; violation; penalty.
Sec. 2082.
(1) No life insurer doing business in this state shall make any distinction or discrimination between white persons and colored persons, wholly or partially of African descent, as to the premiums or rates charged for policies upon the lives of such persons, or in any other manner whatever; nor shall any such insurer demand or require a greater premium from such colored persons than is at that time required by such insurer from white persons of the same age, sex, general condition of health and prospect of longevity; nor make or require any rebate, diminution or discount upon the amount to be paid on such policy in case of death of such colored person insured; nor insert in the policy any condition, nor make any stipulation whereby such person insured shall bind himself or his heirs, executors, administrators and assigns to accept any sum less than the full amount or value of such policy in case of a claim accruing thereon by reason of the death of such person insured, other than such as are imposed on white persons in similar cases; and any such stipulations or conditions so made or inserted shall be void.
(2) Any insurer which violates any of the provisions of this section shall forfeit to the state the sum of $500.00 for each violation, to be recovered by the attorney general by appropriate action in any court of competent jurisdiction, and any judgment therefor may be collected in the same manner as is herein provided for collecting judgments rendered in favor of policyholders. And any officer or agent who violates any of the provisions of this section shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by imprisonment in the county jail not exceeding 1 year, or by a fine of not less than $50.00, and not exceeding $500.00, or by both such fine and imprisonment, in the discretion of the court.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-20 - Chapter 20 Unfair and Prohibited Trade Practices and Frauds (500.2001...500.2093) › Section 500.2086 - False Report by Physician as to Life or Casualty Insurance Applicant; Penalty, Civil Liability to Insurer.

500.2086 False report by physician as to life or casualty insurance applicant; penalty, civil liability to insurer.
Sec. 2086.
Any physician who, as medical examiner for any life or casualty insurer, or as the reference of, or medical examiner for any person seeking insurance therein, shall knowingly make any false statement or report to the insurer, or any officer thereof, concerning the bodily health or condition of any applicant for insurance, or concerning any other matter or thing which might affect the propriety or prudence of granting such insurance, shall be deemed guilty of a misdemeanor, and on conviction thereof, shall be liable to a fine not exceeding $1,000.00, or to imprisonment in the county jail not exceeding 3 months, in the discretion of the court. And such physician shall also be liable to the insurer in an action on the case for the full amount of any insurance obtained from such insurer by means or through the assistance of such false statement or report.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-20 - Chapter 20 Unfair and Prohibited Trade Practices and Frauds (500.2001...500.2093) › Section 500.2088 - False Report by Physician; Claim for Death, Sickness or Disability Benefits, Penalty.

500.2088 False report by physician; claim for death, sickness or disability benefits, penalty.
Sec. 2088.
Any agent, collector, physician, insured or other person who shall make, present or cause to be presented to any insurer any false, dishonest or fraudulent certificate or report of death, sickness or disability of any kind or nature, or any false, dishonest or fraudulent claim for any death, sickness or disability benefit, or claim for payment to or against any such insurer, shall be deemed guilty of a misdemeanor, and on conviction thereof, shall be liable to a fine not exceeding $1,000.00, or to imprisonment in the county jail not exceeding 3 months, in the discretion of the court.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-20 - Chapter 20 Unfair and Prohibited Trade Practices and Frauds (500.2001...500.2093) › Section 500.2091 - Unlawful Advertising; Notice to Supervisory Official.

500.2091 Unlawful advertising; notice to supervisory official.
Sec. 2091.
No unauthorized foreign or alien insurer shall make, issue, circulate or cause to be made, issued or circulated to residents of this state any estimate, illustration, circular, pamphlet or letter, or cause to be made in any newspaper, magazine or other publication, or over any radio or television station, any announcement or statement to such residents misrepresenting its financial condition or the terms of any contracts issued or to be issued or the benefits or advantages promised thereby, or the dividends or share of the surplus to be received thereon in violation of sections 2001 to 2050 of this act, and whenever the commissioner has reason to believe that any such insurer is engaging in unlawful advertising, he shall give notice of such fact by certified mail to the insurer and to the insurance supervisory official of the domiciliary state of the insurer. For the purpose of this section, the domiciliary state of an alien insurer is the state of entry or the state of the principal office in the United States.
History:
Add. 1961, Act 20, Eff. Sept. 8, 1961
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-20 - Chapter 20 Unfair and Prohibited Trade Practices and Frauds (500.2001...500.2093) › Section 500.2092 - Unlawful Advertising; Failure to Cease and Desist, Procedure.

500.2092 Unlawful advertising; failure to cease and desist, procedure.
Sec. 2092.
If after 30 days following the giving of the notice mentioned in section 2091 the insurer has failed to cease making, issuing or circulating such false misrepresentations or causing the same to be made, issued or circulated in this state, and if the commissioner has reason to believe that a proceeding by him in respect to such matters would be to the interest of the public, and that the insurer is issuing or delivering contracts of insurance to residents of this state or collecting premiums on such contracts or doing any of the acts enumerated in section 2093, he shall take action against the insurer under the provisions of sections 2001 to 2050 of this act.
History:
Add. 1961, Act 20, Eff. Sept. 8, 1961
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2101 - Meanings of Words and Phrases.

500.2101 Meanings of words and phrases.
Sec. 2101.
For purposes of this chapter, the words and phrases defined in sections 2102 to 2104 have the meanings ascribed to them in those sections.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1980
Compiler's Notes:
Act 145 of 1979 did not provide a subject-matter heading for Chapter 21.
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2102 - Definitions; a to D.

500.2102 Definitions; A to D.
Sec. 2102.
(1) "Affiliate of", or an insurer "affiliated with" an insurer, means an insurer that directly, or indirectly through 1 or more intermediaries, controls, or is controlled by, or is under common control with the insurer specified.
(2) "Automobile insurance" means insurance for private passenger nonfleet automobiles which provides any of the following:
(a) Security required pursuant to section 3101.
(b) Personal protection, property protection, and residual liability insurance for amounts in excess of the amounts required under chapter 31.
(c) Insurance coverages customarily known as comprehensive and collision.
(d) Other insurance coverages for a private passenger nonfleet automobile as prescribed by rule promulgated by the commissioner pursuant to Act No. 306 of the Public Acts of 1969, as amended, being sections 24.201 to 24.315 of the Michigan Compiled Laws. A rule proposed for promulgation by the commissioner pursuant to this section shall be transmitted in advance to each member of the standing committee in the house and in the senate which has jurisdiction over insurance.
(3) "Automobile insurance package policy" means a policy which includes more than 1 of the automobile insurance coverages described in section 2102(2)(a), (b), (c), or (d), in any combination.
(4) "Declination" means any of the following:
(a) Refusal by an agent to submit an application on behalf of an applicant to any of the insurers represented by the agent.
(b) Refusal by an insurer to issue insurance to a person upon receipt of an application for insurance.
(c) Offering insurance at higher rates with a different insurer than that requested by a person.
(d) Offering coverage with less favorable terms or conditions than those requested by a person.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1980
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2104 - Definitions; P to U.

500.2104 Definitions; P to U.
Sec. 2104.
(1) "Private passenger nonfleet automobile" means a motorized land vehicle designed for transporting passengers or goods, subject to specific contemporary definitions for insurance purposes pursuant to section 3303.
(2) "Repair cost policy" means a home insurance policy for which the amount of coverage under the policy is based substantially on the market value of the property, and which provides for payment for repair, rebuilding, or replacement of losses or damages to real property with materials of like kind and quality, without depreciation, pursuant to section 2826, or with conventional materials and construction methods, pursuant to the standards of section 2827.
(3) "Replacement cost policy" means a home insurance policy for which the amount of coverage under the policy is based substantially on the replacement cost of the property, which provides for settlement of losses to real property pursuant to the standards prescribed in section 2826.
(4) "Substantially at-fault" means a person's action or inaction was more than 50% of the cause of an accident.
(5) "Termination" means a refusal to continue to insure, for reasons other than nonpayment of premium, and includes both of the following:
(a) The transfer of coverage for an insured between affiliated insurers, when the transfer results in higher rates or less coverage, unless the transfer was requested by the insured.
(b) The offering of coverage with less favorable terms or conditions than those previously provided, unless so requested by the insured, or unless the terms or conditions of coverage previously provided are no longer available from the insurer anywhere in this state.
(6) "Underwriting rules" means the written statements, guidelines, or criteria of an insurer, phrased in terms understandable to a person of ordinary intelligence, which describe the standards under which the insurer issues, refuses to issue, renews, refuses to renew, or limits coverage for automobile insurance or home insurance to persons within this state.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1980 ;-- Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2105 - Automobile Insurance or Home Insurance to Conform With Chapter; Exceptions; Group Plan Requirements; Group Discounts; Applicability to Certain Insurers; Effective Date.

500.2105 Automobile insurance or home insurance to conform with chapter; exceptions; group plan requirements; group discounts; applicability to certain insurers; effective date.
Sec. 2105.
(1) A policy of automobile insurance or home insurance must not be offered, bound, made, issued, delivered or renewed in this state unless the policy conforms to this chapter.
(2) Except as otherwise expressly provided in subsection (4) and this chapter, this chapter does not apply to insurance written on a group, franchise, blanket policy, or similar basis that offers home insurance or automobile insurance to all members of the group, franchise plan, or blanket coverage who are eligible persons.
(3) For purposes of this section, a group plan includes a franchise plan, and, except as provided in subsection (4), is exempt from this chapter if the group meets all of the following criteria:
(a) Individuals in the group share a common enterprise or an economic or social affinity or relationship.
(b) The group was not created for the purposes of obtaining insurance.
(c) Membership in the group is not conditioned on the purchase of insurance.
(d) The individual members of the group can be specifically identified.
(e) Any other criteria as prescribed by a rule promulgated by the director under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(4) An insurer, including, but not limited to, an insurer that writes insurance as described in subsection (2), shall not establish or maintain rates or rating classifications for automobile insurance based on a factor that is not allowed, or that is prohibited, under section 2111. This subsection does not prohibit a group discount offered to a group based on the losses or expenses, or both, of the group but does prohibit group membership based on home ownership or postal zone.
(5) The amendments to this chapter made by the amendatory act that added this subsection apply to an insurer exempted from any of the requirements of this chapter under section 2129.
(6) The amendments to this chapter made by the amendatory act that added this subsection apply beginning July 1, 2020.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1980 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2106 - Applicability of Chapters 24 and 26; File, Approval, and Use of Rates; Inconsistent Provisions.

500.2106 Applicability of chapters 24 and 26; file, approval, and use of rates; inconsistent provisions.
Sec. 2106.
(1) Except as specifically provided in this chapter, chapter 24 and chapter 26 do not apply to automobile insurance and home insurance.
(2) Subject to section 2108(6), an insurer shall file rates with the department for approval in compliance with this act.
(3) An insurer may use rates for home insurance as soon as those rates are filed.
(4) To the extent that other provisions of this act are inconsistent with this chapter, this chapter governs with respect to automobile insurance and home insurance.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1981 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2107 - Filings; Review; Disputes; Approval; Order of Disapproval; Revised Filing.

500.2107 Filings; review; disputes; approval; order of disapproval; revised filing.
Sec. 2107.
(1) On or before September 1, 1980, each insurer subject to this chapter shall make filings in accordance with this chapter for automobile insurance, home insurance, or both, to be effective not later than January 1, 1981 nor earlier than November 1, 1980.
(2) With regard to a filing submitted under subsection (1), the commissioner shall conduct a review of the filing on an informal basis, and a dispute with regard to that filing shall not be considered a contested case under Act No. 306 of the Public Acts of 1969, as amended. A filing not disapproved within 60 days after its submission shall be considered approved.
(3) A filing approved or considered approved under subsection (2) shall be exempt from any further proceedings whatsoever under this chapter until July 1, 1981.
(4) If a filing is disapproved under subsection (2), the insurer, within 30 days of the order of disapproval, shall make a revised filing with the commissioner. The revised filing shall take effect on January 1, 1981 and shall be subject to review under this chapter on or after January 1, 1981 in the same manner as subsequent filings made under this chapter.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1980
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2109 - Rates for Automobile Insurance and Home Insurance; Requirements; Determining Existence of Reasonable Degree of Competition.

500.2109 Rates for automobile insurance and home insurance; requirements; determining existence of reasonable degree of competition.
Sec. 2109.
(1) All rates for automobile insurance and home insurance shall be made in accordance with the following provisions:
(a) Rates shall not be excessive, inadequate, or unfairly discriminatory. A rate shall not be held to be excessive unless the rate is unreasonably high for the insurance coverage provided and a reasonable degree of competition does not exist for the insurance to which the rate is applicable.
(b) A rate shall not be held to be inadequate unless the rate is unreasonably low for the insurance coverage provided and the continued use of the rate endangers the solvency of the insurer; or unless the rate is unreasonably low for the insurance provided and the use of the rate has or will have the effect of destroying competition among insurers, creating a monopoly, or causing a kind of insurance to be unavailable to a significant number of applicants who are in good faith entitled to procure that insurance through ordinary methods.
(c) A rate for a coverage is unfairly discriminatory in relation to another rate for the same coverage if the differential between the rates is not reasonably justified by differences in losses, expenses, or both, or by differences in the uncertainty of loss, for the individuals or risks to which the rates apply. A reasonable justification shall be supported by a reasonable classification system; by sound actuarial principles when applicable; and by actual and credible loss and expense statistics or, in the case of new coverages and classifications, by reasonably anticipated loss and expense experience. A rate is not unfairly discriminatory because it reflects differences in expenses for individuals or risks with similar anticipated losses, or because it reflects differences in losses for individuals or risks with similar expenses.
(2) A determination concerning the existence of a reasonable degree of competition with respect to subsection (1)(a) shall take into account a reasonable spectrum of relevant economic tests, including the number of insurers actively engaged in writing the insurance in question, the present availability of such insurance compared to its availability in comparable past periods, the underwriting return of that insurance over a period of time sufficient to assure reliability in relation to the risk associated with that insurance, and the difficulty encountered by new insurers in entering the market in order to compete for the writing of that insurance.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1981
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2110 - Development and Evaluation of Rates; Considerations; Systems of Expense Provisions; Grouping Risks by Classifications.

500.2110 Development and evaluation of rates; considerations; systems of expense provisions; grouping risks by classifications.
Sec. 2110.
(1) In developing and evaluating rates pursuant to the standards prescribed in section 2109, due consideration shall be given to past and prospective loss experience within and outside this state, to catastrophe hazards, if any; to a reasonable margin for underwriting profit and contingencies; to dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers; to past and prospective expenses, both countrywide and those specially applicable to this state exclusive of assessments under this code; to assessments under this code; to underwriting practice and judgment; and to all other relevant factors within and outside this state.
(2) The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of the insurer or group with respect to any kind of insurance, or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable.
(3) Risks may be grouped by classifications for the establishment of rates and minimum premiums. The classifications may measure differences in losses, expenses, or both.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1981
Compiler's Notes:
Act 143 of 1993, which amended this section, was submitted to the people by referendum petition (as Proposal C) and rejected by a majority of the votes cast at the November 8, 1994, general election.
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2110a - Premium Discount Plan.

500.2110a Premium discount plan.
Sec. 2110a.
If uniformly applied to all its insureds, an insurer may use factors in addition to those permitted by section 2111 for insurance if the plan is consistent with the purposes of this act and reflects reasonably anticipated reductions or increases in losses or expenses. This section does not affect benefits or obligations required under chapter 31. This section does not authorize an insurer to offer or prohibit an insurer from offering premium discount plans concerning any of the following:
(a) Health care services, health care providers, or health care facilities.
(b) Automobile repair providers.
(c) Materials used in the repair of an automobile.
History:
Add. 1996, Act 514, Imd. Eff. Jan. 13, 1997 ;-- Am. 2012, Act 441, Imd. Eff. Dec. 27, 2012
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2110b - Use of Automobile Repair or Automobile Glass Repair or Replacement Service; Unreasonable Restriction Prohibited; Disclosure; Notice to Consumers; Development of Plan.

500.2110b Use of automobile repair or automobile glass repair or replacement service; unreasonable restriction prohibited; disclosure; notice to consumers; development of plan.
Sec. 2110b.
(1) An automobile insurance policy and an automobile insurer and its employees, agents, and adjusters shall not unreasonably restrict an insured from using a particular person, place, shop, or entity for the providing of any automobile repair or automobile glass repair or replacement service or product covered by the policy.
(2) An automobile insurer shall disclose, prior to or at the time a claim is filed with the insurer, whether the insurer has an agreement with any repair or replacement facility to provide a repair or replacement service or product to an insured and shall inform an insured that he or she is under no obligation to use a particular repair or replacement facility.
(3) The office of financial and insurance services shall develop a plan whereby the office informs consumers of their rights regarding insurance coverage of automobile repairs, that the insurer is not required to pay more than a reasonable amount for repairs and parts, and of the insured's ability to report violations of their rights to the office of financial and insurance services through the office's toll-free telephone number or website. The plan shall be developed and submitted to the senate and house of representatives standing committees on insurance issues not later than 6 months after the effective date of this section.
History:
Add. 2004, Act 190, Imd. Eff. July 8, 2004
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2111a - Completion of Traffic Accident Prevention Course; Premium Discount to Insureds 50 Years of Age and Older; Provisions.

500.2111a Completion of traffic accident prevention course; premium discount to insureds 50 years of age and older; provisions.
Sec. 2111a.
(1) Notwithstanding section 2111, an automobile insurer may offer a premium discount to insureds 50 years of age and older who successfully complete a traffic accident prevention course that an automobile insurer determines meets all of the criteria listed in subsection (3).
(2) An automobile insurer may provide the discount under subsection (1) for 3 years after successful completion of an initial or refresher traffic accident prevention course.
(3) A traffic accident prevention course shall provide for all of the following:
(a) For an initial traffic accident prevention course, includes not less than 8 hours of classroom instruction taught by an instructor certified by the entity offering the course. For a refresher traffic accident prevention course, includes not less than 4 hours of classroom instruction taught by an instructor certified by the entity offering the course.
(b) Includes, but is not limited to, instruction in all of the following areas:
(i) The effects of aging on driving behavior.
(ii) The shapes, colors, and types of road signs.
(iii) The effects of alcohol and other drugs, including medications, on older drivers.
(iv) Laws relating to the proper use of a motor vehicle and safe driving behavior.
(v) Traffic crash avoidance and prevention measures.
(vi) The benefits and proper use of motor vehicle occupant protection systems.
(vii) Major driving hazards and risk factors associated with traffic crash prevention.
(viii) Interaction with other highway users such as emergency vehicles, trucks, motorcyclists, bicyclists, and pedestrians.
(c) Provides, upon successful completion of the course, a certificate of completion that may be used in applying for an automobile insurance premium discount under subsection (1).
History:
Add. 2006, Act 610, Imd. Eff. Jan. 3, 2007
Compiler's Notes:
Former MCL 500.2111a, which pertained to automobile insurance package policies within urban area territories, was repealed by Act 191 of 1991, Eff. Apr. 1, 1992.
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2111b, 500.2111c - Repealed. 1991, Act 191, Eff. Apr. 1, 1992.

500.2111b, 500.2111c Repealed. 1991, Act 191, Eff. Apr. 1, 1992.
Compiler's Notes:
The repealed sections pertained to prohibited territorial base rate and reports.
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2111d - Home Insurance; Premium Discount Plan for Senior Citizens.

500.2111d Home insurance; premium discount plan for senior citizens.
Sec. 2111d.
Notwithstanding section 2111, an insurer may establish or maintain for home insurance a premium discount plan for senior citizens in this state who are at least 55 years of age or older, if the plan is uniformly applied by the insurer throughout this state.
History:
Add. 1990, Act 131, Imd. Eff. June 26, 1990
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2111e - Rates Increase Prohibited; Applicability of Section.

500.2111e Rates increase prohibited; applicability of section.
Sec. 2111e.
Notwithstanding any other provision of this act, an automobile insurer shall not raise rates for automobile insurance before April 1, 1992. This section shall not apply to rate changes based upon assessments levied against insurers pursuant to section 3104 or 3330.
History:
Add. 1991, Act 191, Eff. Jan. 1, 1992
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2113 - Private Informal Managerial-Level Conference With Insurer; Internal Procedures; Review and Determination by Commissioner; Procedure for Determination; Hearing Matter as Contested Case.

500.2113 Private informal managerial-level conference with insurer; internal procedures; review and determination by commissioner; procedure for determination; hearing matter as contested case.
Sec. 2113.
(1) A person who has reason to believe that an insurer has improperly denied him or her automobile insurance or home insurance or has charged an incorrect premium for that insurance shall be entitled to a private informal managerial-level conference with the insurer and to a review before the commissioner, if the conference fails to resolve the dispute.
(2) An insurer shall establish reasonable internal procedures to provide a person with a private informal managerial-level conference regarding the matters described in subsection (1). These procedures shall include all of the following:
(a) A method of providing the person, upon request and payment of a reasonable copying charge, with information pertinent to the denial of insurance or to the premium charged.
(b) A method for resolving the dispute promptly and informally, while protecting the interests of both the person and the insurer.
(3) If the insurer fails to provide a conference and proposed resolution within 30 days after a request by a person, or if the person disagrees with the proposed resolution of the insurer after completion of the conference, the person shall be entitled to a determination of the matter by the commissioner.
(4) The commissioner shall by rule establish a procedure for determination under this section, which shall be reasonably calculated to resolve these matters informally and as rapidly as possible, while protecting the interests of both the person and the insurer.
(5) If either the insurer or the person disagrees with a determination of the commissioner under this section, the commissioner, if requested to do so by either party, shall proceed to hear the matter as a contested case under Act No. 306 of the Public Acts of 1969, as amended.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1981
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2114 - Person or Organization Aggrieved by Filing; Application for Hearing; Specification of Grounds; Notice of Hearing; Order of Commissioner.

500.2114 Person or organization aggrieved by filing; application for hearing; specification of grounds; notice of hearing; order of commissioner.
Sec. 2114.
(1) A person or organization aggrieved with respect to any filing which is in effect and which affects the person or organization may make written application to the commissioner for a hearing on the filing. However, the insurer or rating organization which made the filing shall not be authorized to proceed under this subsection. The application shall specify the grounds to be relied upon by the applicant. If the commissioner finds that the application is made in good faith, that the applicant would be so aggrieved if the grounds specified are established, or that the grounds specified otherwise justify holding a hearing, the commissioner, not more than 30 days after receipt of the application, shall hold a hearing in accordance with Act No. 306 of the Public Acts of 1969, as amended, upon not less than 10 days' written notice to the applicant, the insurer, and the rating organization which made the filing.
(2) If after hearing initiated under subsection (1) or upon the commissioner's own motion pursuant to Act No. 306 of the Public Acts of 1969, as amended, the commissioner finds that a filing does not meet the requirements of sections 2109 and 2111, the commissioner shall issue an order stating the specific reasons for that finding. The order shall state when, within a reasonable time after issuance of the order, the filing shall be considered no longer effective. A copy of the order shall be sent to the applicant, if any, and to each insurer and rating organization subject to the order. The order shall not affect a contract or policy made or issued before the date the filing becomes ineffective, as indicated in the commissioner's order.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1981
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2115 - Finding by Commissioner That Reasonable Degree of Competition Does Not Exist on Statewide Basis; Order Requiring Compliance With Chapter 24 or 26; Hearing; Notice; New Order.

500.2115 Finding by commissioner that reasonable degree of competition does not exist on statewide basis; order requiring compliance with chapter 24 or 26; hearing; notice; new order.
Sec. 2115.
(1) If as part of a decision in a proceeding under section 2114, or in a separate proceeding on the commissioner's own motion, held pursuant to Act No. 306 of the Public Acts of 1969, as amended, the commissioner finds that a reasonable degree of competition does not exist on a statewide basis with respect to automobile insurance or home insurance, the commissioner shall by order require each insurer which transacts that type of insurance in this state to comply with the provisions of chapter 24 or 26, as the case may be, with respect to that insurance which was the subject of the commissioner's finding. The order shall take effect not less than 90 nor more than 150 days after the order is issued. On or after the effective date of an order issued under this subsection, none of the provisions of this chapter shall be applicable to the insurance which was the subject of the order.
(2) After an order issued pursuant to subsection (1) has been in effect for 1 year, if the commissioner has reason to believe that there would be a reasonable degree of price competition for the type of insurance affected by the order, or if, upon the petition of an insurer or a resident of this state, there is a showing that there is reason to believe that there would be a reasonable degree of price competition for that type of insurance, the commissioner shall hold a hearing pursuant to Act No. 306 of the Public Acts of 1969, as amended, to determine if a reasonable degree of price competition would exist if the order were no longer in effect. The hearing shall be held upon not less than 20 days' written notice to each insurer subject to the order and upon not less than 20 days' notice in not less than 3 newspapers of general circulation within this state.
(3) If the commissioner finds after the hearing that a reasonable degree of price competition would exist, the commissioner shall by order state when, not less than 90 nor more than 150 days after issuance of a new order, the preceding order will no longer be effective. On and after the effective date of an order issued under this subsection, the provisions of this chapter shall be applicable to the type of insurance which was the subject of the order.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1981 ;-- Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2116 - Condition of Licensure as Insurance Agent; Penalizing Insurance Agent.

500.2116 Condition of licensure as insurance agent; penalizing insurance agent.
Sec. 2116.
(1) A duly licensed insurance agent licensed to represent 1 or more insurers shall, as a condition of licensure, do all of the following:
(a) Provide each eligible person seeking automobile insurance or home insurance a premium quotation for the forms or types of insurance coverages that are offered by the insurers represented by the agent and that are sought by the eligible person.
(b) Inform the eligible person of the number of insurers that he or she represents. If the agent represents additional insurers from which the eligible person may obtain insurance, the agent may provide additional premium quotations as requested by the eligible person.
(c) Not attempt to channel an eligible person away from an insurer or insurance coverage with the purpose or effect of avoiding an agent's obligation to submit an application or an insurer's obligation to accept an eligible person.
(d) On request, submit an application of the eligible person for automobile insurance or home insurance to the insurer selected by the eligible person.
(e) For automobile insurance only, at least annually, supply, with the renewal of a policy, to each insured, unless the information is available from the insurer, all of the following:
(i) An explanation of the insurance eligibility point system.
(ii) A statement that if the insured is an eligible person he or she may qualify for insurance from more than 1 insurer, and possibly at a lower rate.
(iii) A statement that the agent will, on request, furnish to the insured a set of quotations from insurers represented by the agent from whom the insured may obtain insurance, as required in this subsection.
(2) With respect to automobile insurance or home insurance, an insurer shall not penalize an individual agent by paying less than normal commissions or normal compensation or salary because of the expected or actual experience produced by the agent's business or because of the geographic location of business written by the agent.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1981 ;-- Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981 ;-- Am. 2012, Act 454, Imd. Eff. Dec. 27, 2012
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2116a - Automobile Insurance; Person on Active Duty in United States Armed Forces; Lapse in Coverage; Prohibited Conduct by Insurer; Conditions.

500.2116a Automobile insurance; person on active duty in United States armed forces; lapse in coverage; prohibited conduct by insurer; conditions.
Sec. 2116a.
An automobile insurer shall not refuse to insure, refuse to continue to insure, limit coverage available to, charge a reinstatement fee for, or increase the premiums for automobile insurance solely because a person failed to maintain insurance required by section 3101 for a vehicle owned by the person during the 6-month period immediately preceding application if the person certifies on a form provided by the insurer that the lapse in coverage was because the person was on active duty in the armed forces of the United States for at least 30 consecutive days and that the vehicle was not driven or moved during the 6-month period immediately preceding application or during the period of time the insurance was not maintained, whichever period is shorter. This section applies only to an eligible person.
History:
Add. 2007, Act 35, Imd. Eff. July 11, 2007
Popular Name:
Act 218
Popular Name:
Essential Insurance
Popular Name:
No-Fault Insurance