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) › 218-1956-21 - Chapter 21 (500.2101...500.2138) › Section 500.2116b - Automobile Insurance; Lapse in Coverage; Prohibited Conduct by Insurer; Applicability.

500.2116b Automobile insurance; lapse in coverage; prohibited conduct by insurer; applicability.
Sec. 2116b.
(1) Subject to subsection (2), 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 for an eligible person solely because the person previously failed to maintain insurance required by section 3101 for a vehicle owned by the person.
(2) This section only applies to an eligible person that applies for automobile insurance before January 1, 2022.
History:
Add. 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 500.2119 - Underwriting Rules to Be in Writing; Inconsistent Transactions Prohibited; Uniform Application of Underwriting Rules Required; Adoption of Underwriting Rules by Insurer With More Than 1 Rating Plan; Underwriting Rules for New Applicants and for Renewals; Filing and Public Inspection of Underwriting Rules; Order Prohibiting Use of Inconsistent Underwriting Rule.

500.2119 Underwriting rules to be in writing; inconsistent transactions prohibited; uniform application of underwriting rules required; adoption of underwriting rules by insurer with more than 1 rating plan; underwriting rules for new applicants and for renewals; filing and public inspection of underwriting rules; order prohibiting use of inconsistent underwriting rule.
Sec. 2119.
(1) Each insurer subject to this chapter shall put in writing all underwriting rules used by the insurer. An insurer shall not transact automobile or home insurance inconsistently with its underwriting rules.
(2) An insurer shall apply its underwriting rules uniformly and without exception throughout this state, so that every applicant or insured conforming with the underwriting rules will be insured or renewed, and so that every applicant or insured not conforming with the underwriting rules will be refused insurance or nonrenewed, when the information becomes available to the insurer.
(3) An insurer with more than 1 rating plan for automobile insurance contracts providing identical coverages shall not adopt underwriting rules that would permit a person to be insured, for automobile insurance, under more than 1 of the rating plans.
(4) An insurer may establish underwriting rules for new applicants that are different than rules for renewals of existing insureds only if the applicants or existing insureds are not eligible persons. Underwriting rules pertaining to renewals of existing insureds who are not eligible persons may be based on a contractual obligation of the insurer not to cancel or nonrenew.
(5) For informational purposes, an insurer shall file with the commissioner its underwriting rules before their use in this state. All filed underwriting rules shall be available for public inspection. If the commissioner finds that an underwriting rule is inconsistent with this chapter, the commissioner, after a hearing held under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, shall by order prohibit further use of the underwriting rule.
(6) This section does not prohibit an insurer from insuring persons who are not eligible persons under underwriting rules established under this section and sections 2117, 2118, and 2120.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1981 ;-- Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981 ;-- 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 500.2119a - Automobile Insurance; Calculating Insurance Eligibility Points.

500.2119a Automobile insurance; calculating insurance eligibility points.
Sec. 2119a.
In calculating insurance eligibility points for purposes of determining eligibility for automobile insurance and for purposes of applying underwriting rules, only the highest applicable insurance eligibility point value shall be accumulated for any single occurrence involving more than 1 violation, or for any single occurrence involving 1 or more violations together with 1 substantially at-fault accident determination.
History:
Add. 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 500.2121 - Home Insurance; Criteria for Selecting Dwellings for Inspection; Inspection Program; Filing Inspection Criteria; Disapproval of Inspection Criteria; Liability.

500.2121 Home insurance; criteria for selecting dwellings for inspection; inspection program; filing inspection criteria; disapproval of inspection criteria; liability.
Sec. 2121.
(1) If an insurer uses an inspection of a dwelling to determine whether the insured or applicant is an eligible person for home insurance, criteria for selecting dwellings for inspection shall not be based on race, color, creed, marital status, sex, national origin, residence, age, disability, or lawful occupation.
(2) If an insurer establishes an inspection program that provides for inspection of a portion of its existing business on a periodic basis, the inspection program shall not be based on any of the criteria in subsection (1).
(3) Criteria for selecting dwellings for inspection shall be filed with the commissioner for informational purposes only. The commissioner, after a hearing held pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, shall disapprove the further use of inspection criteria if the commissioner finds that the criteria are inconsistent with this chapter.
(4) There is no civil liability, other than contractual liability, if applicable, on the part of, and a cause of action of any nature does not arise against, the commissioner, an insurer, an inspection bureau, an authorized representative, agent, employee, or affiliate of the commissioner, an insurer, or an inspection bureau, or any licensed insurance agent for acts or omissions related solely to the physical condition of the property in an inspection conducted for insurance purposes under this chapter.
History:
Add. 1979, Act 145, Eff. Jan. 1, 1981 ;-- Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981 ;-- Am. 1998, Act 26, Imd. Eff. Mar. 12, 1998 ;-- Am. 2002, Act 492, Eff. Mar. 31, 2003 ;-- 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 500.2122 - Declination of Insurance; Explanation of Reasons; Refusal of Application Form as Declination.

500.2122 Declination of insurance; explanation of reasons; refusal of application form as declination.
Sec. 2122.
(1) An insurer or agent, upon making a declination of insurance, shall inform the applicant of each specific reason for the declination. If the application or request for coverage was made in writing, the insurer or agent shall provide the explanation of reasons in writing. If the application or request for coverage was made orally, the insurer or agent may provide the applicant with an oral explanation instead of a written explanation, and shall offer to provide a written explanation if the applicant requests a written explanation within 90 days.
(2) A refusal, by an insurer or agent, to provide upon request an application form or other means of making an application or request for coverage shall be considered a declination subject to this section.
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 500.2123 - Termination of Insurance; Delivery or Mailing of Notice; Contents of Notice; Effective Date of Termination; Conformity With Underwriting Rules; Violation of Chapter 32 Not Authorized.

500.2123 Termination of insurance; delivery or mailing of notice; contents of notice; effective date of termination; conformity with underwriting rules; violation of chapter 32 not authorized.
Sec. 2123.
(1) Except as provided in subsection (2) or (3), a termination of insurance shall not be effective unless the insurer, at least 30 days prior to the date of termination, delivers or mails to the named insured at the person's last known address a written notice of the termination. The notice shall state the effective date of termination and each specific reason for the termination.
(2) A notice of termination mailed or delivered within the first 55 days after the initial issuance of a policy may be made effective not less than 20 days after the date of mailing or delivery of the notice.
(3) A notice of termination for nonpayment of premium shall be effective as provided in the policy.
(4) A termination of insurance shall not be effective unless the termination is due to reasons which conform to the underwriting rules of the insurer for that insurance.
(5) This section shall not authorize an insurer to terminate an automobile insurance policy in violation of chapter 32.
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 500.2124 - Liability for Information or Statement.

500.2124 Liability for information or statement.
Sec. 2124.
(1) There shall be no civil liability on the part of, and a cause of action of any nature shall not arise against, the commissioner, an insurer, an employee of an insurer, an authorized representative, agent, or employee of the commissioner, or any licensed insurance agent furnishing to an insurer information required pursuant to sections 2122 and 2123 relating to reasons for cancellation, nonrenewal, or declination, for any statement made by them concerning an insured or applicant for insurance.
(2) Subsection (1) shall not apply if a statement made is shown to have been made with gross negligence or in bad faith with malice in fact, and if the statement was made under any of the following circumstances:
(a) In a written notice of cancellation, nonrenewal, or declination, or in any other written or oral communication specifying the reason or reasons for cancellation, nonrenewal, or declination.
(b) In a communication providing information pertaining to a cancellation, nonrenewal, or declination.
(c) As a part of statements made or evidence submitted in a court or administrative proceeding, hearing, or informal inquiry in which the cancellation, nonrenewal, or declination to which the statement relates is an issue.
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 500.2125 - Suspension of Insurer's Obligation Under MCL 500.2117 or 500.2118; Hearing; Duration of Suspension.

500.2125 Suspension of insurer's obligation under MCL 500.2117 or 500.2118; hearing; duration of suspension.
Sec. 2125.
(1) After providing an opportunity for a hearing under Act No. 306 of the Public Acts of 1969, as amended, the commissioner shall suspend an insurer's obligations under section 2117, 2118, or both, if any of the following occurs:
(a) A condition exists for which the commissioner may suspend, revoke, or limit the authority of the insurer pursuant to section 436, and the commissioner determines that suspension of all or a part of the insurer's obligations would be in the best interests of the public, the insurer, and the policyholders of the insurer.
(b) The insurer requests suspension and the commissioner finds that requiring the insurer to comply with section 2117, 2118, or both would cause the insurer undue financial or administrative hardship.
(2) If an insurer requests suspension and avers that there is an immediate need to cease its compliance with section 2117, 2118, or both, because of undue financial or administrative hardship under subsection (1)(b), the insurer's obligation to comply with section 2117, 2118, or both shall be suspended 10 business days after the insurer has filed the request and supporting documentation with the commissioner, unless within that time, the commissioner holds a hearing and finds that undue hardship under subsection (1)(b) will not be caused by continued compliance.
(3) The suspension provided in subsection (1) shall continue until the commissioner, upon the commissioner's own motion or upon request, after providing opportunity for a hearing under Act No. 306 of the Public Acts of 1969, as amended, orders its revocation.
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 500.2126 - Suspension of Acceptance of Applications; Filing and Contents of Notice; Disapproval.

500.2126 Suspension of acceptance of applications; filing and contents of notice; disapproval.
Sec. 2126.
An insurer may at any time suspend its acceptance of all applications from new automobile or home insurance risks by filing a notice with the commissioner. The notice shall specify the period of the suspension and the method by which the insurer proposes to effect the suspension. A suspension is subject to the disapproval of the commissioner if, after a hearing held pursuant to Act No. 306 of the Public Acts of 1969, as amended, the commissioner finds that the suspension does not have a legitimate business purpose which is consistent with the purposes of this chapter or that the suspension would adversely affect the maintenance of a competitive market.
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 500.2127 - Collecting and Reporting Data; Rule; Use of Sampling Techniques.

500.2127 Collecting and reporting data; rule; use of sampling techniques.
Sec. 2127.
The commissioner may by rule prospectively require insurers, rating organizations, and advisory organizations to collect and report data only to the extent necessary to monitor and evaluate the automobile and home insurance markets in this state. The commissioner shall authorize the use of sampling techniques in each instance where sampling is practicable and consistent with the purposes for which the data are to be collected and reported.
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 500.2128 - Repealed. 1986, Act 10, Imd. Eff. Feb. 28, 1986.

500.2128 Repealed. 1986, Act 10, Imd. Eff. Feb. 28, 1986.
Compiler's Notes:
The repealed section pertained to development of sales offices to assure access to competitive insurance markets.
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 500.2129 - Exemption From Chapter; Request; Form; Continuation of Exemption; Filing Annual Reporting Form; Order Discontinuing Exemption; Requalification for Exemption Prohibited; Ineligible Insurers.

500.2129 Exemption from chapter; request; form; continuation of exemption; filing annual reporting form; order discontinuing exemption; requalification for exemption prohibited; ineligible insurers.
Sec. 2129.
(1) Each insurer whose surplus as concerns policyholders as of December 31, 1979 as shown on the annual financial statement filed with the commissioner was $4,000,000.00 or less shall be exempt from the provisions of this chapter, if the insurer files with the commissioner a written request for such an exemption on or before January 1, 1981 on a form provided by the commissioner.
(2) The exemption granted under this section shall continue indefinitely with respect to an insurer initially qualifying, so long as that insurer experiences no disproportionate growth in premium volume in automobile insurance or home insurance, or changes in the insurer's pattern, location, or contours of that insurance business which indicate that the insurer is utilizing its exemption to take unfair competitive advantage of competing insurers who do not enjoy the benefits of the exemption.
(3) The commissioner shall provide each insurer with a reporting form which shall be filed annually with the commissioner by which the commissioner can monitor each insurer's continued compliance with the standards of business conduct required for the continuation of the exemption.
(4) If the commissioner finds after a hearing held pursuant to Act No. 306 of the Public Acts of 1969, as amended, that an insurer no longer qualifies for the exemption granted under this section, the commissioner shall issue an order to that effect. Beginning 6 months after the date of an order issued under this subsection, the insurer shall be fully subject to all the provisions of this chapter and shall not be permitted to requalify for an exemption under this section.
(5) An exemption under this section shall not be granted to any insurer that directly, or indirectly through 1 or more intermediaries, controls, or is controlled by, or is under common control with the insurer specified whose surplus as concerns policyholders is in excess of the amount stated in subsection (1).
(6) An insurer admitted to do business in this state after January 1, 1981 shall not be eligible to qualify for the exemption granted under this section.
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 500.2130 - Rules Requiring Exchange of Insurance Claim Information; Liability.

500.2130 Rules requiring exchange of insurance claim information; liability.
Sec. 2130.
(1) The commissioner shall promulgate rules requiring insurers to exchange automobile and home insurance claim information necessary to effectuate compliance with this chapter.
(2) There shall be no civil liability on the part of, and a cause of action of any nature shall not arise against, the commissioner, an insurer, or an authorized representative, agent, employee, or affiliate of the commissioner or an insurer, for acts or omissions, other than acts made with gross negligence or in bad faith with malice in fact, related to the exchange of claim information.
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 500.2131 - Effective Date of MCL 500.2101 to 500.2105, 500.2107, and 500.2131; Effective Date of Chapter Generally.

500.2131 Effective date of MCL 500.2101 to 500.2105, 500.2107, and 500.2131; effective date of chapter generally.
Sec. 2131.
Sections 2101 to 2105, 2107, and this section shall take effect January 1, 1980. The balance of this chapter shall take effect January 1, 1981.
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 500.2134-500.2138 - Repealed. 1991, Act 191, Eff. Apr. 1, 1992.

500.2134-500.2138 Repealed. 1991, Act 191, Eff. Apr. 1, 1992.
Compiler's Notes:
The repealed sections pertained to requirements for an insurer transacting automobile insurance in state, verification of existence of automobile, and filing report of theft as condition to claim payment.
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) › 218-1956-21A - Chapter 21a Credit Information and Credit Scores (500.2151...500.2162) › Section 500.2151 - Definitions.

500.2151 Definitions.
Sec. 2151.
As used in this chapter:
(a) "Adverse action" means an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any personal insurance, existing or applied for.
(b) "Consumer reporting agency" means any person that, for monetary fees or dues or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties.
(c) "Credit information" means any credit-related information derived from a credit report, found on a credit report itself, or provided on an application for personal insurance. Information that is not credit-related must not be considered credit information, regardless of whether it is contained in a credit report or in an application, or is used to calculate an insurance score.
(d) "Credit report" means any written, oral, or other communication of information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, or credit capacity that is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in the rating of personal insurance.
(e) "Credit score" means the numerical score ranging from 300 to 850 assigned by a consumer reporting agency to measure credit risk and includes FICO credit score.
(f) "Insurance score" means a number or rating that is derived from an algorithm, computer application, model, or other process that is based in whole or in part on credit information for the purposes of predicting the future insurance loss exposure of an individual applicant or insured.
(g) "Personal insurance" means property/casualty insurance written for personal, family, or household use, including automobile, home, motorcycle, mobile home, noncommercial dwelling fire, boat, personal watercraft, snowmobile, and recreational vehicle, whether written on an individual, group, franchise, blanket policy, or similar basis.
History:
Add. 2012, Act 165, Eff. Mar. 28, 2013 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019
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) › 218-1956-21A - Chapter 21a Credit Information and Credit Scores (500.2151...500.2162) › Section 500.2154 - Reasonable Exceptions.

500.2154 Reasonable exceptions.
Sec. 2154.
(1) Notwithstanding any other law, rule, or regulation, an insurer that uses credit information shall, on written request from an insured or insurance applicant, provide reasonable exceptions to the application of that credit information on the insurer's rates, rating classifications, or company or tier placement for an insured or insurance applicant who has experienced and whose credit information has been directly influenced by any of the following events:
(a) Catastrophic event, as declared by the federal or state government.
(b) Serious illness or injury, or serious illness or injury to an immediate family member.
(c) Death of a spouse, child, or parent.
(d) Divorce or involuntary interruption of legally owed alimony or support payments.
(e) Identity theft.
(f) Temporary loss of employment for a period of 3 months or more, if it results from involuntary termination.
(g) Military deployment overseas.
(h) Predatory lending resulting in the foreclosure of, or commencement of proceedings or an action to foreclose, a mortgage of real property owned by the insured or insurance applicant.
(i) Other events, as determined by the insurer.
(2) If an insured or insurance applicant submits a request for an exception under subsection (1), an insurer may, but is not required to do, any of the following:
(a) Require a reasonable written and independently verifiable documentation of the event.
(b) Require the insured or insurance applicant to demonstrate that the event had direct and meaningful impact on the insured's or insurance applicant's credit information.
(c) Require a request to be made no more than 60 days from the date of the application for insurance or the policy renewal.
(d) Grant an exception even if the insured or insurance applicant did not provide an initial request for an exception in writing.
(e) Grant an exception where the insured or insurance applicant asks for consideration of repeated events or the insurer has considered this event previously.
(3) A law, rule, or regulation relating to underwriting, rating, or rate filing is not violated by any insurer as a result of granting an exception under this section.
(4) The insurer shall provide notice to insureds and insurance applicants that reasonable exceptions are available and information about how to inquire further.
(5) Within 30 days of the insurer's receipt of sufficient documentation of an event described in subsection (1), the insurer shall inform the insured or insurance applicant of the outcome of his or her request for a reasonable exception. This communication shall be in writing or provided in the same medium as the request for a reasonable exception.
History:
Add. 2012, Act 207, Eff. Mar. 28, 2013
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) › 218-1956-21A - Chapter 21a Credit Information and Credit Scores (500.2151...500.2162) › Section 500.2156 - Notice of Adverse Action.

500.2156 Notice of adverse action.
Sec. 2156.
If an insurer takes an adverse action based upon credit information, the insurer shall notify the insured or applicant for insurance in accordance with 15 USC 1681m(a), that an adverse action has been taken. The insurer shall provide notice in clear and specific language of the reasons for the adverse action, including a description of all factors that were the primary or most significant influences for the adverse action and the insured's or the applicant's insurance score if not otherwise provided. However, not more than 4 factors for the adverse action need to be given. The use of generalized terms such as "poor credit history", "poor credit rating", or "poor insurance score" does not meet the description requirements of this section. Standardized credit explanations provided by consumer reporting agencies or other third party vendors meet the description requirements of this section.
History:
Add. 2012, Act 206, Eff. Mar. 28, 2013
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) › 218-1956-21A - Chapter 21a Credit Information and Credit Scores (500.2151...500.2162) › Section 500.2157 - Incorrect or Incomplete Credit Information; Adjustments.

500.2157 Incorrect or incomplete credit information; adjustments.
Sec. 2157.
If it is determined through the dispute resolution process set forth in 15 USC 1681i(a) that the credit information of a current insured was incorrect or incomplete and if the insurer receives notice of this determination from either the consumer reporting agency or from the insured, the insurer shall reevaluate the insured within 30 days of receiving the notice. After reevaluating the insured, the insurer shall make any adjustments necessary, consistent with this act and the insurer's underwriting, rating guidelines, and premium discount plan. If an insurer determines that the insured has overpaid premium, the insurer shall refund to the insured the amount of overpayment calculated back to the shorter of either the last 12 months of coverage or the actual policy period.
History:
Add. 2012, Act 208, Eff. Mar. 28, 2013
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) › 218-1956-21A - Chapter 21a Credit Information and Credit Scores (500.2151...500.2162) › Section 500.2159 - Cause of Action; Construction of Chapter.

500.2159 Cause of action; construction of chapter.
Sec. 2159.
Nothing in this chapter shall be construed to provide an insured or applicant for insurance with a cause of action that does not exist in the absence of this chapter.
History:
Add. 2012, Act 205, Eff. Mar. 28, 2013
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) › 218-1956-21A - Chapter 21a Credit Information and Credit Scores (500.2151...500.2162) › Section 500.2161 - Use of Credit Information or Insurance Scores; Liability, Fees, and Costs Arising Out of Actions, Errors, or Omissions.

500.2161 Use of credit information or insurance scores; liability, fees, and costs arising out of actions, errors, or omissions.
Sec. 2161.
An insurer shall indemnify, defend, and hold harmless producers from and against all liability, fees, and costs arising out of or relating to the actions, errors, or omissions of a producer resulting from the use of credit information or insurance scores for the insurer, provided that the producer follows the procedures and instructions established by the insurer and complies with all applicable laws and regulations.
History:
Add. 2012, Act 205, Eff. Mar. 28, 2013
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) › 218-1956-21A - Chapter 21a Credit Information and Credit Scores (500.2151...500.2162) › Section 500.2162 - Use of Credit Score to Establish Rates or Rating Classification for Automobile Insurance; Prohibition.

500.2162 Use of credit score to establish rates or rating classification for automobile insurance; prohibition.
Sec. 2162.
An insurer shall not use an individual's credit score to establish or maintain rates or rating classifications for automobile insurance.
History:
Add. 2019, Act 21, Imd. Eff. June 11, 2019
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2204 - Settlement of Action Brought by Third Party Against Person Insured Under Commercial Liability Insurance Policy; Notice to Insured Required.

500.2204 Settlement of action brought by third party against person insured under commercial liability insurance policy; notice to insured required.
Sec. 2204.
Prior to a trial, an insurer shall not settle an action brought by a third party against a person insured under a commercial liability insurance policy issued by the insurer, unless the insurer gives the insured notice of the settlement at least 10 days prior to the settlement. As used in this section, "commercial liability insurance" means insurance which provides indemnification for commercial, industrial, professional, or business liabilities.
History:
Add. 1986, Act 173, Imd. Eff. July 7, 1986
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2205 - Minor's Contracts for Insurance.

500.2205 Minor's contracts for insurance.
Sec. 2205.
A contract for life or disability insurance made by a person between the ages of 16 and 18 years for his benefit, or for the benefit of his father, mother, husband, wife, child, brother or sister, or for the surrender of the insurance, or for the discharge of money payable or benefit accruing thereunder, shall be good and of the same force and effect as though the minor had attained his majority at the time of making the contract. This section shall not have the effect of making a promissory note or other evidence of indebtedness given by a minor in payment of premium or premiums on contracts for insurance valid, either in the hands of the original owner or a subsequent purchaser thereof.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1972, Act 47, Imd. Eff. Feb. 19, 1972
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2206 - Repealed. 2014, Act 140, Eff. Mar. 31, 2015.

500.2206 Repealed. 2014, Act 140, Eff. Mar. 31, 2015.
Compiler's Notes:
The repealed section pertained to minor's capacity to receive insurance benefits.
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2209 - Insurable Interest; Married Woman; Right to Proceeds, Devise.

500.2209 Insurable interest; married woman; right to proceeds, devise.
Sec. 2209.
(1) It shall be lawful for any married woman, by herself, and in her name or in the name of any third person, with his assent, as her trustee, to cause to be insured for her sole use, the life of her husband or the life of any other person, in any life insurance company of any nature whatever, located in either of the states of the United States of America or in Great Britain, for any definite period, or for the term of his natural life; and in case of her surviving her husband, or such other person insured in her behalf, the sum or net amount of the policy of insurance due and payable by the terms of the insurance, shall be payable to her, to and for her own use, free from the claims of the representatives of her husband, or of such other person insured, or of any of his creditors, but such exemption shall not apply where the amount of premium annually paid shall exceed the sum of $300.00.
(2) In case of the death of the wife before the decease of her husband, or of such other person insured, the amount of the insurance may be made payable after her death to her children, for their use, and to their guardian, if under age, or the amount of the policy may be disposed of by such married woman by a last will and testament.
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2210 - Definitions; Insurable Interest; Employer; Trust; Exemption From Claims.

500.2210 Definitions; insurable interest; employer; trust; exemption from claims.
Sec. 2210.
(1) As used in this section:
(a) "Employee benefit plan" means that term as defined by the employee retirement income security act of 1974, Public Law 93-406, 88 Stat. 829.
(b) "Employer" means an individual, sole proprietorship, partnership, firm, corporation, association, or any other legal entity, which has 1 or more employees and is legally doing business in this state.
(c) "Trust" means a trust established by an employer.
(2) Notwithstanding any other section of this act, an employer or a trust has an insurable interest in, and may, with the written consent of the insured, insure on an individual or group basis for its benefit the lives of the employer's directors, officers, managers, nonmanagement employees, and retired employees. An employer or a trust may insure the lives of the employer's nonmanagement employees and its retired employees only if those persons give written consent to be insured and the coverage is limited to an amount reasonably commensurate with the employer's projected unfunded liabilities to nonmanagement and retired employees for employee benefit plans, calculated according to accepted actuarial principles. An employer shall not retaliate in any manner against an employee or a retired employee for refusing consent to be insured.
(3) Notwithstanding any other section of this act, a trust maintained for the purpose of providing for the cost of benefits under an employee benefit plan maintained for employees or retired employees has an insurable interest in, and may, with the acquiescence of the insured, insure on an individual or group basis for its benefit the lives of the employer's directors, officers, managers, nonmanagement employees, and retired employees. A trust may insure the life of a nonmanagement employee and a retired employee only if that person is given written notice of the coverage, he or she has not notified either the employer or the trust in writing that he or she does not want to be insured for the coverage, and the coverage is limited to an amount reasonably commensurate with the employer's projected unfunded liabilities to nonmanagement and retired employees for employee benefit plans, calculated according to accepted actuarial principles. An employer or a trust shall not retaliate in any manner against an employee or a retired employee for providing the written notice that he or she does not want to be insured for the coverage.
(4) The proceeds of any policy or certificate issued pursuant to subsection (2) or (3) are exempt from the claims of any creditor or dependent of the insured.
History:
Add. 1990, Act 349, Eff. Mar. 28, 1991 ;-- Am. 1994, Act 227, Imd. Eff. June 27, 1994 ;-- Am. 1998, Act 222, Imd. Eff. July 1, 1998
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2210a - Trustee Having Insurable Interest Under MCL 700.7114.

500.2210a Trustee having insurable interest under MCL 700.7114.
Sec. 2210a.
A trustee of a trust has an insurable interest in the life of an individual as provided in section 7114 of the estates and protected individuals code, 1998 PA 386, MCL 700.7114.
History:
Add. 2014, Act 7, Imd. Eff. Feb. 11, 2014
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2211 - Consent of Insured.

500.2211 Consent of insured.
Sec. 2211.
(1) Any individual who has an insurable interest in the life of another human being shall not insure that other human being's life for the individual's benefit unless the human being whose life is to be insured consents to be insured in writing. That person's signature on the application for insurance constitutes consent.
(2) This section applies to life insurance policies and certificates of $10,000.00 or more delivered or issued for delivery in this state on and after 30 days after the effective date of this section. This section does not apply if the human being whose life is to be insured is less than 18 years of age.
History:
Add. 1998, Act 91, Imd. Eff. May 14, 1998
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2212 - Insurable Interest in Life of Individual.

500.2212 Insurable interest in life of individual.
Sec. 2212.
Notwithstanding any other section of this act, an organization described in and qualified under section 501(c)(3) of the internal revenue code of 1986, 26 U.S.C. 501, has an insurable interest in the life of an individual who gives written consent to the ownership or purchase of a policy on his or her life.
History:
Add. 1996, Act 572, Imd. Eff. Jan. 16, 1997
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2212d - National or Regional Certification of Physician; Condition of Payment or Reimbursement by Insurer or Health Maintenance Organization; Prohibited.

500.2212d National or regional certification of physician; condition of payment or reimbursement by insurer or health maintenance organization; prohibited.
Sec. 2212d.
An insurer that delivers, issues for delivery, or renews in this state a health insurance policy issued under chapter 34 or a health maintenance organization that issues a health maintenance contract under chapter 35 shall not require as the sole condition precedent to the payment or reimbursement of a claim under the policy or contract that an allopathic or osteopathic physician in the medical specialties of family practice, internal medicine, or pediatrics maintain a national or regional certification not otherwise specifically required for licensure under article 15 of the public health code, 1978 PA 368, MCL 333.16101 to 333.18838.
History:
Add. 2018, Act 487, Imd. Eff. Dec. 27, 2018
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2213a - Expenses Incurred by Director; Calculation; Assessment; "Insurer" Defined.

500.2213a Expenses incurred by director; calculation; assessment; "insurer" defined.
Sec. 2213a.
(1) The director shall calculate actual and necessary expenses incurred by the director under section 2213 by June 30 of each year for the immediately preceding fiscal year. Except as otherwise provided in subsection (2), the director shall divide these expenses among all insurers that issue a policy or certificate under chapter 34 or 35 in this state on a pro rata basis according to the direct written premiums of each insurer as reported in the insurer's annual statement for the immediately preceding calendar year. An insurer shall pay the assessment within 30 days after receipt of the assessment. The assessment is in addition to the regulatory fee provided for in section 224.
(2) This section does not apply to a policy, certificate, care, coverage, or insurance listed in section 5(2) of the patient's right to independent review act, 2000 PA 251, MCL 550.1905, as not being subject to the patient's right to independent review act, 2000 PA 251, MCL 550.1901 to 550.1929.
(3) As used in this section, "insurer" includes a nonprofit dental care corporation operating under 1963 PA 125, MCL 550.351 to 550.373.
History:
Add. 1996, Act 517, Eff. Oct. 1, 1997 ;-- Am. 2002, Act 707, Imd. Eff. Dec. 30, 2002 ;-- Am. 2016, Act 276, Imd. Eff. July 1, 2016
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) › 218-1956-22 - Chapter 22 the Insurance Contract (500.2204...500.2266) › Section 500.2213c - Disability Income Insurer; Internal Grievance Procedure; Establishment; Contents; “Grievance” Defined.

500.2213c Disability income insurer; internal grievance procedure; establishment; contents; “grievance” defined.
Sec. 2213c.
(1) Each disability income insurer shall establish an internal grievance procedure for persons covered under a disability income policy, certificate, or contract.
(2) An internal grievance procedure under subsection (1) shall include all of the following:
(a) Provide for a designated person responsible for administering the grievance procedure.
(b) Provide for a designated person or telephone number for receiving grievances.
(c) Ensure full investigation of a grievance.
(d) Provide for timely notification to the insured as to the progress of an investigation.
(e) Provide for the insured to have the right to have the grievance reviewed by a managerial-level person or group.
(f) Provide for notification to the insured of the results of the insurer's investigation and, if the insurer upholds its prior determination on the grievance, for advising the insured of his or her right to present the grievance to the commissioner for review.
(g) Provide that a final determination will be made in writing by the insurer not later than 45 calendar days after a grievance is submitted in writing by the insured unless the insurer requires an extension of time to obtain additional information to make a determination with respect to the subject of the grievance. The extension may not exceed 45 days from the end of the initial period unless the initial period is extended due to the insured's failure to submit information necessary to decide the claim on appeal. If the extension is due to an insured's failure to submit information, the period for making the determination shall be tolled until the date the insured responds to the request for additional information.
(h) Provide for copies of all grievances and responses to be available at the principal office of the insurer for inspection by the commissioner for 2 years following the year the grievance was filed.
(3) As used in this section, "grievance" means a written complaint by an insured concerning the payment of benefits under a disability income insurance policy.
History:
Add. 2002, Act 707, Imd. Eff. Dec. 30, 2002
Popular Name:
Act 218