THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
CHAPTER 21
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 note: 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
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
500.2103 Definitions; E to I.
Sec. 2103. (1) "Eligible person", for automobile insurance, means a person who is an owner or registrant of
an automobile registered or to be registered in this state or who holds a valid license to operate a motor
vehicle issued by this state, but does not include any of the following:
(a) A person who is not required to maintain security under section 3101, unless the person intends to
reside in this state for 30 days or more and makes a written statement of that intention on a form approved by
the director.
(b) A person whose license to operate a vehicle is under suspension or revocation.
(c) A person who has been convicted within the immediately preceding 5-year period of fraud or intent to
defraud involving an insurance claim or an application for insurance; or an individual who has been
successfully denied, within the immediately preceding 5-year period, payment by an insurer of a claim in
excess of $1,000.00 under an automobile insurance policy, if there is evidence of fraud or intent to defraud
involving an insurance claim or application.
(d) A person who, during the immediately preceding 3-year period, has been convicted under, or who has
been subject to an order of disposition of the family division of circuit court for a violation of, any of the
following:
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(i) Section 601d of the Michigan vehicle code, 1949 PA 300, MCL 257.601d, or any other law of this state
the violation of which constitutes a felony resulting from the operation of a motor vehicle.
(ii) Section 625 of the Michigan vehicle code, 1949 PA 300, MCL 257.625.
(iii) Section 617, 617a, 618, or 619 of the Michigan vehicle code, 1949 PA 300, MCL 257.617, 257.617a,
257.618, and 257.619.
(iv) Section 626 of the Michigan vehicle code, 1949 PA 300, MCL 257.626; or a similar violation under
the laws of any other state or a municipality in or outside of this state.
(e) A person whose vehicle insured or to be insured under the policy fails to meet the motor vehicle safety
requirements of sections 683 to 711 of the Michigan vehicle code, 1949 PA 300, MCL 257.683 to 257.711.
(f) A person whose policy of automobile insurance has been canceled because of nonpayment of premium
or financed premium within the immediately preceding 2-year period, unless the premium due on a policy for
which application has been made is paid in full before issuance or renewal of the policy.
(g) A person who fails to obtain or maintain membership in a club, group, or organization, if membership
is a uniform requirement of the insurer as a condition of providing insurance, and if the dues, charges, or other
conditions for membership are applied uniformly throughout this state, are not expressed as a percentage of
premium, and do not vary with respect to the rating classification of the member except for the purpose of
offering a membership fee to family units. Membership fees may vary in accordance with the amount or type
of coverage if the purchase of additional coverage, either as to type or amount, is not a condition for reduction
of dues or fees.
(h) A person whose driving record for the 3-year period immediately preceding application for or renewal
of a policy, has, under section 2119a, an accumulation of more than 6 insurance eligibility points.
(2) "Eligible person", for home insurance, means a person who is the owner-occupant or tenant of a
dwelling of any of the following types: a house, a condominium unit, a cooperative unit, a room, or an
apartment; or a person who is the owner-occupant of a multiple unit dwelling of not more than 4 residential
units. Eligible person does not include any of the following:
(a) A person who has been convicted, in the immediately preceding 5-year period, of 1 or more of the
following:
(i) Arson, or conspiracy to commit arson.
(ii) A crime under sections 72 to 77, 112, 211a, 377a, 377b, or 380 of the Michigan penal code, 1931 PA
328, MCL 750.72 to 750.77, 750.112, 750.211a, 750.377a, 750.377b, and 750.380.
(iii) A crime under section 92, 151, 157b, or 218 of the Michigan penal code, 1931 PA 328, MCL 750.92,
750.151, 750.157b, and 750.218, based on a crime described in subparagraph (ii) committed by or on behalf
of the person.
(b) A person who has been successfully denied, within the immediately preceding 5-year period, payment
by an insurer of a claim under a home insurance policy based on evidence of arson, conspiracy to commit
arson, fraud, or conspiracy to commit fraud, committed by or on behalf of the person.
(c) A person who insures or seeks to insure a dwelling that is being used for an illegal or demonstrably
hazardous purpose.
(d) A person who refuses to purchase an amount of insurance equal to at least 80% of the replacement cost
of the property insured or to be insured under a replacement cost policy.
(e) A person who refuses to purchase an amount of insurance equal to at least 100% of the market value of
the property insured or to be insured under a repair cost policy.
(f) A person who refuses to purchase an amount of insurance equal to at least 100% of the actual cash
value of the property insured or to be insured under a tenant or renter's home insurance policy.
(g) A person whose policy of home insurance has been canceled because of nonpayment of premium
within the immediately preceding 2-year period, unless the premium due on the policy is paid in full before
issuance or renewal of the policy.
(h) A person who insures or seeks to insure a dwelling, if the insured value is not any of the following:
(i) For a repair cost policy, at least $15,000.00.
(ii) For a replacement policy, at least $35,000.00 or another amount established by the director. The
director may establish an amount under this subparagraph biennially by a rule promulgated under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, and based on changes in
applicable construction cost indices.
(i) A person who insures or seeks to insure a dwelling that has physical conditions that clearly present an
extreme likelihood of a significant loss under a home insurance policy.
(j) A person whose real property taxes with respect to the dwelling insured or to be insured have been and
are delinquent for 2 or more years at the time of renewal of, or application for, home insurance.
(k) A person who has failed to procure or maintain membership in a club, group, or organization, if
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membership is a uniform requirement of the insurer, and if the dues, charges, or other conditions for
membership are applied uniformly throughout this state, are not expressed as a percentage of premium, and
do not vary with respect to the rating classification of the member except for the purpose of offering a
membership fee to family units. Membership fees may vary in accordance with the amount or type of
coverage if the purchase of additional coverage, either as to type or amount, is not a condition for reduction of
dues or fees.
(3) "Home insurance" means any of the following, but does not include insurance intended to insure
commercial, industrial, professional, or business property, obligations, or liabilities:
(a) Fire insurance for an insured's dwelling of a type described in subsection (2).
(b) If contained in or indorsed to a fire insurance policy providing insurance for the insured's residence,
other insurance intended primarily to insure nonbusiness property, obligations, and liabilities.
(c) Other insurance coverages for an insured's residence as prescribed by rule promulgated by the director
under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The director shall
transmit a rule proposed for promulgation under this section in advance to each member of the standing
committees in the house of representatives and the senate that have jurisdiction over insurance.
(4) "Insurance eligibility points" means all of the following:
(a) Points calculated, according to the following schedule, for convictions, determinations of responsibility
for civil infractions, or findings of responsibility in probate court:
(i) For a violation of any lawful speed limit by more than 15 miles per hour, or careless driving, 4 points.
(ii) For a violation of any lawful speed limit by more than 10 miles per hour but less than 16 miles per
hour, 3 points.
(iii) For a violation of any lawful speed limit by more than 5 miles per hour but less than 11 miles per hour,
2 points.
(iv) For a violation of any speed limit by more than 5 miles per hour but less than 16 miles per hour on a
roadway that had a lawfully posted maximum speed of 70 miles per hour or greater as of January 1, 1974, 2
points.
(v) For a violation of a speed limit by less than 6 miles per hour, 1 point.
(vi) For all other moving violations pertaining to the operation of motor vehicles, 2 points.
(b) Points calculated, according to the following schedule, for determinations that the person was
substantially at-fault:
(i) For the first substantially at-fault accident, 3 points.
(ii) For the second and each subsequent substantially at-fault accident, 4 points.
(5) "Insurer" means an insurer authorized to transact in this state the kind or combination of kinds of
insurance constituting automobile insurance or home insurance.
History: Add. 1979, Act 145, Eff. Jan. 1, 1980;Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981;Am. 1990, Act 305, Imd. Eff. Dec.
14, 1990;Am. 2001, Act 147, Eff. Feb. 1, 2002;Am. 2002, Act 492, Eff. Mar. 31, 2003;Am. 2016, Act 449, Eff. Jan. 5, 2018.
Compiler's note: 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
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:
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(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
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
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
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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
500.2108 Filing of manual or plan; statement of character and extent of coverage;
maintaining rates in effect for eligible persons; insurer as member of or subscriber to
rating organization; deviations; certification, contents, and public inspection of filing;
trade secret; contract or policy to be in accordance with filings; automobile insurance
compliance with chapter 24; redlining practices prohibited.
Sec. 2108. (1) On the effective date of a manual of classification, manual of rules and rates, rating plan, or
modification of a manual of classification, manual of rules and rates, or rating plan that an insurer proposes to
use for home insurance, the insurer shall file the manual or plan with the director. For automobile insurance,
an insurer shall file a manual or plan described in this subsection in accordance with subsection (6). Each
filing under this subsection must state the character and extent of the coverage contemplated. An insurer that
is subject to this chapter and that maintains rates in any part of this state shall at all times maintain rates in
effect for all eligible persons meeting the underwriting criteria of the insurer.
(2) An insurer may satisfy its obligation to make filings under subsection (1) by becoming a member of, or
a subscriber to, a rating organization licensed under chapter 24 or chapter 26 that makes the filings, and by
filing with the director a copy of its authorization of the rating organization to make the filings on its behalf.
This chapter does not require an insurer to become a member of or a subscriber to a rating organization. An
insurer may file and use deviations from filings made on its behalf. The deviations are subject to this chapter.
(3) A filing under this section must be accompanied by a certification by or on behalf of the insurer that, to
the best of the insurer's information and belief, the filing conforms to the requirements of this chapter.
(4) A filing under this section must include information that supports the filing with respect to the
requirements of section 2109. The information may include 1 or more of the following:
(a) The experience or judgment of the insurer or rating organization making the filing.
(b) The interpretation of the insurer or rating organization of any statistical data it relies on.
(c) The experience of other insurers or rating organizations.
(d) Any other relevant information.
(5) Except as otherwise provided in this subsection, the department shall make a filing under this section
and any accompanying information open to public inspection on filing. An insurer or a rating organization
filing on the insurer's behalf may designate information included in the filing or any accompanying
information as a trade secret. The insurer or the rating organization filing on behalf of the insurer shall
demonstrate to the director that the designated information is a trade secret. If the director determines that the
information is a trade secret, the information is not subject to public inspection and is exempt from disclosure
under the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. As used in this subsection, "trade
secret" means that term as defined in section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902.
However, trade secret does not include filings and information accompanying filings under this section that
were subject to public inspection before January 11, 2016.
(6) For automobile insurance, an insurer shall file a manual or plan in accordance with chapter 24, except
that the manual or plan must remain on file for a waiting period of 90 days before it becomes effective, which
period may not be extended by the director, and the waiting period applies regardless of whether supporting
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information is required by the director under section 2406(1). Upon written application by the insurer, the
director may authorize a filing that he or she has reviewed to become effective before expiration of the
waiting period.
(7) An insurer shall not make, issue, or renew a contract or policy except in accordance with filings that are
in effect for the insurer under this chapter.
(8) A filing under this chapter must specify that the insurer will not refuse to insure, refuse to continue to
insure, or limit the amount of coverage available because of the location of the risk, and that the insurer
recognizes those practices to constitute redlining. An insurer shall not engage in redlining as described in this
subsection.
History: Add. 1979, Act 145, Eff. Jan. 1, 1981;Am. 2015, Act 141, Eff. Jan. 11, 2016;Am. 2019, Act 21, Imd. Eff. June 11,
2019.
Popular name: Act 218
Popular name: Essential Insurance
Popular name: No-Fault Insurance
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
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.
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(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 note: 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
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
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
500.2111 Classifications and territorial base rates for automobile insurance or home
insurance; conformity with applicable requirements; additional factors.
Sec. 2111. (1) Notwithstanding any provision of this act or this chapter to the contrary, classifications and
territorial base rates used by an insurer in this state with respect to automobile insurance or home insurance
must conform to the applicable requirements of this section.
(2) Classifications established under this section for automobile insurance must be based only on 1 or more
of the following factors, which must be applied by an insurer on a uniform basis throughout this state:
(a) With respect to all automobile insurance coverages:
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(i) Either the age of the driver; the length of driving experience; or the number of years licensed to operate
a motor vehicle.
(ii) Driver primacy, based on the proportionate use of each vehicle insured under the policy by individual
drivers insured or to be insured under the policy.
(iii) Average miles driven weekly, annually, or both.
(iv) Type of use, such as business, farm, or pleasure use.
(v) Vehicle characteristics, features, and options, such as engine displacement, ability of the vehicle and its
equipment to protect passengers from injury, and other similar items, including vehicle make and model.
(vi) Daily or weekly commuting mileage.
(vii) Number of cars insured by the insurer or number of licensed operators in the household. However,
number of licensed operators must not be used as an indirect measure of marital status.
(viii) Amount of insurance.
(b) In addition to the factors prescribed in subdivision (a), with respect to personal protection insurance
coverage:
(i) Earned income.
(ii) Number of dependents of income earners insured under the policy.
(iii) Coordination of benefits.
(iv) Use of a safety belt.
(c) In addition to the factors prescribed in subdivision (a), with respect to collision and comprehensive
coverages:
(i) The anticipated cost of vehicle repairs or replacement, which may be measured by age, price, cost new,
or value of the insured automobile, and other factors directly relating to that anticipated cost.
(ii) Vehicle make and model.
(iii) Vehicle design characteristics related to vehicle damageability.
(iv) Vehicle characteristics relating to automobile theft prevention devices.
(d) With respect to all automobile insurance coverage other than comprehensive, successful completion by
the individual driver or drivers insured under the policy of an accident prevention education course that meets
the following criteria:
(i) The course must include a minimum of 8 hours of classroom instruction.
(ii) The course must include, but not be limited to, a review of all of the following:
(A) The effects of aging on driving behavior.
(B) The shapes, colors, and types of road signs.
(C) The effects of alcohol and medication on driving.
(D) The laws relating to the proper use of a motor vehicle.
(E) Accident prevention measures.
(F) The benefits of safety belts and child restraints.
(G) Major driving hazards.
(H) Interaction with other highway users, such as motorcyclists, bicyclists, and pedestrians.
(3) Each insurer shall establish a secondary or merit rating plan for automobile insurance, other than
comprehensive coverage. A secondary or merit rating plan required under this subsection must provide for
premium surcharges for all coverages for automobile insurance, other than comprehensive coverage, based on
any of the following, when that information becomes available to the insurer:
(a) Substantially at-fault accidents.
(b) Convictions for, determinations of responsibility for civil infractions for, or findings of responsibility in
probate court for civil infractions for violations under chapter VI of the Michigan vehicle code, 1949 PA 300,
MCL 257.601 to 257.750. However, an insured must not be merit rated for a civil infraction under chapter VI
of the Michigan vehicle code, 1949 PA 300, MCL 257.601 to 257.750, for a period of time longer than that
which the secretary of state's office carries points for that infraction on the insured's motor vehicle record.
(4) An insurer shall not establish or maintain rates or rating classifications for automobile insurance based
on any of the following:
(a) Sex.
(b) Marital status.
(c) Home ownership.
(d) Educational level attained.
(e) Occupation.
(f) The postal zone in which the insured resides.
(g) Credit score as provided in section 2162.
(5) Notwithstanding other provisions of this chapter, automobile insurance risks may be grouped by
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territory.
(6) This section does not limit insurers or rating organizations from establishing and maintaining statistical
reporting territories. This section does not prohibit an insurer from establishing or maintaining, for automobile
insurance, a premium discount plan for senior citizens in this state who are 65 years of age or older, if the plan
is uniformly applied by the insurer throughout this state. If an insurer has not established and maintained a
premium discount plan for senior citizens, the insurer shall offer reduced premium rates to senior citizens in
this state who are 65 years of age or older and who drive less than 3,000 miles per year, regardless of
statistical data.
(7) Classifications established under this section for home insurance other than inland marine insurance
provided by policy floaters or endorsements must be based only on 1 or more of the following factors:
(a) Amount and types of coverage.
(b) Security and safety devices, including locks, smoke detectors, and similar, related devices.
(c) Repairable structural defects reasonably related to risk.
(d) Fire protection class.
(e) Construction of structure, based on structure size, building material components, and number of units.
(f) Loss experience of the insured, based on prior claims attributable to factors under the control of the
insured that have been paid by an insurer. An insured's failure, after written notice from the insurer, to correct
a physical condition that presents a risk of repeated loss is a factor under the control of the insured for
purposes of this subdivision.
(g) Use of smoking materials within the structure.
(h) Distance of the structure from a fire hydrant.
(i) Availability of law enforcement or crime prevention services.
(8) Notwithstanding other provisions of this chapter, home insurance risks may be grouped by territory.
(9) An insurer may use factors in addition to those permitted by this section for insurance if the plan is
consistent with the purposes of this act and reflects reasonably anticipated reductions or increases in losses or
expenses.
History: Add. 1979, Act 145, Eff. Jan. 1, 1981;Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981;Am. 1986, Act 10, Imd. Eff. Feb. 28,
1986;Am. 1987, Act 150, Imd. Eff. Oct. 26, 1987;Am. 1990, Act 88, Eff. Mar. 28, 1991;Am. 1991, Act 24, Imd. Eff. May 20,
1991;Am. 1991, Act 191, Eff. Jan. 1, 1992;Am. 1996, Act 98, Imd. Eff. Feb. 28, 1996;Am. 2002, Act 492, Eff. Mar. 31, 2003;
Am. 2012, Act 441, Imd. Eff. Dec. 27, 2012;Am. 2019, Act 21, Imd. Eff. June 11, 2019.
Compiler's note: 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
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.
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(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 note: 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
500.2111b, 500.2111c Repealed. 1991, Act 191, Eff. Apr. 1, 1992.
Compiler's note: The repealed sections pertained to prohibited territorial base rate and reports.
Popular name: Act 218
Popular name: Essential Insurance
Popular name: No-Fault Insurance
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
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
500.2111f Automobile insurance; premium rate reduction requirements for personal
protection insurance coverage; approval by director; use of savings; applicability to
certain increases; inclusion of catastrophic claims assessment; severability; definitions.
Sec. 2111f. (1) Before July 1, 2020, an insurer that offers automobile insurance in this state shall file
premium rates for personal protection insurance coverage for automobile insurance policies effective after
July 1, 2020.
(2) Subject to subsections (6) and (7), the premium rates filed as required by subsection (1), and any
subsequent premium rates filed by the insurer for personal protection insurance coverage under automobile
insurance policies effective before July 2, 2028, must result, as nearly as practicable, in an average reduction
per vehicle from the premium rates for personal protection insurance coverage that were in effect for the
insurer on May 1, 2019 as follows:
(a) For policies subject to the coverage limits under section 3107c(1)(a), an average 45% or greater
reduction per vehicle.
(b) For policies subject to the coverage limits under section 3107c(1)(b), an average 35% or greater
reduction per vehicle.
(c) For policies subject to the coverage limits under section 3107c(1)(c), an average 20% or greater
reduction per vehicle.
(d) For policies not subject to any coverage limit under section 3107c(1)(d), an average 10% or greater
reduction per vehicle.
(3) For a policy under which an election under section 3107d has been made to not maintain coverage for
personal protection insurance benefits payable under section 3107(1)(a), or for a policy to which an exclusion
under section 3109a(2) applies, the premium rates filed under subsection (1), and any subsequent premium
rates filed by the insurer for personal protection insurance coverage, must result in no premium charge for
coverage for personal protection insurance benefits payable under section 3107(1)(a).
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(4) The director shall review a filing submitted by an insurer under subsections (1) to (3) for compliance
with this section. Subject to subsection (7), the director shall disapprove a filing if after review the director
determines that the filing does not result in the premium reductions required by subsections (2) and (3).
(5) If the director disapproves a premium rate filing under subsection (4), the insurer shall submit a revised
premium rate filing to the director within 15 days after the disapproval. The premium rate filing is subject to
review in the same manner as an original premium rate filing under subsection (4).
(6) For policies issued or renewed in the year beginning July 1, 2024 and in the year beginning July 1,
2026, an automobile insurer that offers automobile insurance in this state shall make filings demonstrating its
compliance with this section.
(7) At any time, an insurer may apply to the director for approval to file rates that result in a lower
premium reduction level or an exemption from the requirements of subsection (2) and the director shall
approve the application if the rates otherwise comply with this act and compliance with the premium
reductions required by subsection (2) will result in any of the following:
(a) The insurer reaching the company action level risk-based capital.
(b) A violation of the Fourteenth Amendment of the United States Constitution as to the insurer. This
subdivision does not apply after July 1, 2023.
(c) A violation of section 17 of article I of the state constitution of 1963, as to deprivation of property
without due process. This subdivision does not apply after July 1, 2023.
(8) An insurer shall pass on, in filings to which this section applies, savings realized from the application
of section 3157(2) to (12) to treatment, products, services, accommodations, or training rendered to
individuals who suffered accidental bodily injury from motor vehicle accidents that occurred before July 2,
2021. An insurer shall provide the director with all documents and information requested by the director that
the director determines are necessary to allow the director to evaluate the insurer's compliance with this
subsection. After July 1, 2022, the director shall review all rate filings to which this section applies for
compliance with this subsection.
(9) This section does not prohibit an increase for any individual insurance policy premium if the increase
results from applying rating factors as approved under this chapter, including the requirements of this section.
(10) After July 1, 2020 and before July 2, 2028, an insurer shall not issue or renew an automobile
insurance policy in this state unless the premium rates filed by the insurer for personal protection insurance
coverage are approved under this section.
(11) For purposes of calculating a personal protection insurance premium or premium rate under this
section, the premium must include the catastrophic claims assessment imposed under section 3104.
(12) If subsection (2) or the application of subsection (2) to any insurer is found to be invalid by a court,
the remaining portions of the amendatory act that added this section are not severable and shall be deemed
invalid and inoperable.
(13) As used in this section:
(a) "Authorized control level RBC" means the number determined under the risk-based capital formula in
accordance with the RBC report, including risk-based capital instructions adopted by the National Association
of Insurance Commissioners and the director.
(b) "Company action level risk-based capital" means 2 times the insurer's authorized control level RBC.
(c) "RBC report" means the report of the insurer's RBC levels as required by the annual statement
instructions.
History: Add. 2019, Act 21, Imd. Eff. June 11, 2019;Add. 2019, Act 22, Imd. Eff. June 11, 2019.
Compiler's note: MCL 500.2111f was added by 2019 PA 21 and 2019 PA 22. 2019 PA 22, being substantively the same as 2019 PA
21 and enacted after 2019 PA 21, becomes the only version on its effective date.
Popular name: Act 218
Popular name: Essential Insurance
Popular name: No-Fault Insurance
500.2112 Written notice to policyholder; information available upon request; contact
information; manner of providing; trade secret.
Sec. 2112. (1) Subject to subsection (3), at least annually, in conjunction with a renewal notice, a bill, or
other notice of payment due issued to a policyholder in conjunction with an automobile or home insurance
contract, an insurer shall send to the policyholder a written notice that all of the following information is
available and will be provided to the policyholder on request:
(a) A description of the specific rating classifications by which the rates and premiums for the policy have
been determined. The notice must be of sufficient detail and clarity so that the policyholder can reasonably
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verify the applicability and accuracy of the rating classifications.
(b) A general explanation of the extent to which rates or premiums vary among policyholders on the basis
of the rating classifications used by the insurer.
(c) Sources and reasonable procedures by which the policyholder can obtain from the insurer additional
information sufficient for the policyholder to calculate and confirm the accuracy of his or her specific
premium.
(d) Relevant information regarding the rights of the policyholder, under sections 2113 and 2114, to appeal
the application of the insurer's rating plan in determining his or her premium, to obtain documentation from
the insurer regarding the determination of the rate, to appeal the application of the insurer's underwriting rules
to the policyholder, to request an informal conference with the insurer, and to file with the director a
complaint as an aggrieved person.
(e) A description of all of the insurer's underwriting rules based on insurance eligibility points and a
description of all of the underwriting rules of the insurer's affiliates based on insurance eligibility points.
(f) A suggestion that the policyholder contact his or her agent to determine if he or she is eligible for
insurance from an affiliate of the insurer or under a different rating plan of the insurer that would provide to
the policyholder insurance at a more favorable premium.
(2) In a written notice provided under subsection (1), the insurer shall provide the policyholder with a
telephone number and an Internet address, by either of which the policyholder may contact the insurer to
request the information listed in subsection (1). On request of the policyholder, the insurer shall provide the
policyholder with the requested information in either a written or electronic format, as requested by the
policyholder.
(3) An insurer is not required to provide information to an insured under this section that is a trade secret as
determined by the director under section 2108(5) or 2406(6).
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;Am. 2015, Act 141, Eff. Jan. 11, 2016.
Popular name: Act 218
Popular name: Essential Insurance
Popular name: No-Fault Insurance
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
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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
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
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
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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
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
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
500.2117 Home insurance; condition of maintaining insurer's certificate of authority; basis of
underwriting rules; provisions applicable to repair cost policy; rates; aggregation of
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claims; adjustment of minimum dollar amounts.
Sec. 2117. (1) As a condition of maintaining its certificate of authority, an insurer shall not refuse to insure,
refuse to continue to insure, or limit the coverage available to an eligible person for home insurance, except in
accordance with underwriting rules established under this section and section 2119.
(2) The underwriting rules that an insurer may establish for home insurance shall be based only on the
following:
(a) Criteria identical to the standards set forth in section 2103(2).
(b) The physical condition of the property insured or to be insured, if the underwriting rules are objective,
are directly related to the perils insured against, and, without regard to the age of the structure, are based on
the specific provisions of a national, state, or local housing and safety code, a manufacturer's specification, or
standards of similar specificity. If an applicant or insured obtains a certificate of compliance or habitation
issued by an appropriate governmental unit or agency, certifying that a building is in substantial compliance
with local housing and safety codes, the certificate creates a rebuttable presumption that the dwelling meets
the insurer's underwriting rules relating to physical condition.
(c) For the renewal of a home insurance policy, the claim history of the person insured or to be insured
during the 3-year period immediately preceding renewal of the policy, if that history is based on 1 or both of
the following:
(i) Claim experience arising out of the insured's negligence.
(ii) Failure by the insured, after written notice from the insurer, to correct a physical condition that is
directly related to a paid claim or that presents a clear risk of a significant loss under the property or liability
portions of a homeowners policy.
(d) The relationship between market value and replacement cost of a dwelling insured or to be insured for a
replacement cost policy, if a repair cost policy is offered by the insurer under subsection (3).
(e) For nonrenewal of a home insurance policy, the claim history under the policy, excluding liability
claims, as follows:
(i) If there has been 1 or more of the following:
(A) Three paid claims within the immediately preceding 3-year period totaling $3,000.00 or more,
exclusive of weather-related claims.
(B) Three paid claims within the immediately preceding 3-year period totaling $4,000.00 or more,
including weather-related claims.
(ii) A history of 3 or more paid claims within an immediately preceding 3-year period if the insurer meets
all of the following:
(A) Has an underwriting rule under subparagraph (i) in effect.
(B) The underwriting rule under this subparagraph is for a paid claim history that totals not less than the
amount in subparagraph (i)(A) exclusive of weather-related claims and totals not less than the amount in
subparagraph (i)(B) including weather-related claims.
(C) The underwriting rule under this subparagraph applies to an insured who has had a home insurance
policy with the insurer for a continuous minimum period of time as determined by the insurer that may be any
period of time between 5 and 10 years.
(f) Whether the number of residences within the dwelling are inconsistent with the policy forms approved
by the commissioner for the insurer.
(g) Whether a dwelling has been unoccupied for more than 60 days, if there is evidence of an intent to
vacate or keep the premises vacant or unoccupied, as to the applicant or insured.
(h) The existence of an adjacent physical hazard, if the hazard presents a significant risk of loss directly
related to the perils insured or to be insured against for which a rate surcharge is not applicable. For purposes
of this subdivision only, residential property or traffic patterns shall not be considered to cause a significant
risk of loss. Nonrenewals based upon an adjacent physical hazard shall be due to a change in the hazard from
that which existed at the original date of issuance of the policy.
(i) The failure of the insured or applicant to purchase an amount of insurance in excess of 80% of the
replacement cost of the property to be insured under a replacement cost policy, if both of the following
conditions are met:
(i) The purchase of an amount of insurance in excess of 80% of the replacement cost is a condition for sale
of the policy.
(ii) The insurer offers in this state at least 1 form of a replacement cost policy for which the insurer
requires only a minimum amount of insurance equal to 80% of the replacement cost of the dwelling as a
condition of purchase.
(j) One or more incidents involving a threat, harassment, or physical assault by the insured or applicant for
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insurance on an insurer employee, agent, or agent employee while acting within the scope of his or her
employment, if a report of the incident was filed with an appropriate law enforcement agency.
(3) If an insurer establishes an underwriting rule based on the relationship between the market value and
replacement cost under subsection (2)(d), both of the following apply to the repair cost policy:
(a) The insurer shall offer the repair cost policy with deductibles, terms and conditions, perils insured
against, and types and amounts of coverage, which are substantially equivalent to the deductibles, terms and
conditions, perils insured against, and types and amounts of coverage provided by the replacement cost policy
of the insurer, at least equivalent to the HO-2 form replacement cost policy filed and in effect in this state for
the principal rating organization as of October 1, 1979.
(b) The insurer shall not use an underwriting rule based on the relationship between the market value and
replacement cost for the repair cost policy.
(4) The rates of an insurer for a repair cost policy shall be established so that the premium for a repair cost
policy shall not exceed 105% of the premium for an amount of insurance equal to 80% of the replacement
cost of the dwelling under the equivalent replacement cost policy described in subsection (3)(a). Premiums for
dwellings with identical replacement costs shall vary on a schedule determined by the insurer in accordance
with the market value of the dwellings.
(5) Off-premises claims may be aggregated for the purposes of subsection (2)(e), irrespective of the
location of the insured dwelling. All claims other than off-premises losses used in a determination for
purposes of subsection (2)(e) shall be aggregated only as to an insured dwelling. The minimum dollar
amounts prescribed in subsection (2)(e)(i) shall be adjusted on January 1, 2006, and on January 1 of every
sixth year thereafter to reflect the aggregate annual average percentage change in the consumer price index
since the previous adjustment, rounded to the nearest hundred dollars. As used in this subsection, "consumer
price index" means the consumer price index for all urban consumers in the U.S. city average, as most
recently reported by the United States department of labor, bureau of labor statistics, and after certification by
the commissioner in an administrative bulletin.
History: Add. 1979, Act 145, Eff. Jan. 1, 1981;Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981;Am. 2001, Act 25, Eff. Jan. 1, 2002;
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
500.2118 Automobile insurance; condition of maintaining insurer's certificate of authority;
basis of underwriting rules.
Sec. 2118. (1) As a condition of maintaining its certificate of authority, an insurer shall not refuse to insure,
refuse to continue to insure, or limit coverage available to an eligible person for automobile insurance, except
in accordance with underwriting rules established as provided in this section and sections 2119 and 2120.
(2) The underwriting rules that an insurer may establish for automobile insurance must be based only on
the following:
(a) Criteria identical to the standards set forth in section 2103(1).
(b) The insurance eligibility point accumulation in excess of the amounts established by section 2103(1) of
a member of the household of the eligible person insured or to be insured, if the member of the household
usually accounts for 10% or more of the use of a vehicle insured or to be insured. For purposes of this
subdivision, a person who is the principal driver for 1 automobile insurance policy is rebuttably presumed not
to usually account for more than 10% of the use of other vehicles of the household not insured under the
policy of that person.
(c) With respect to a vehicle insured or to be insured, substantial modifications from the vehicle's original
manufactured state for purposes of increasing the speed or acceleration capabilities of the vehicle.
(d) Except as otherwise provided in section 2116a or 2116b, failure by the person to provide proof that
insurance required by section 3101 was maintained in force with respect to any vehicle that was both owned
by the person and driven or moved by the person or by a member of the household of the person during the
6-month period immediately preceding application. The proof must take the form of a certification by the
person on a form provided by the insurer that the vehicle was not driven or moved without maintaining the
insurance required by section 3101 during the 6-month period immediately preceding application.
(e) Type of vehicle insured or to be insured, based on 1 of the following, without regard to the age of the
vehicle:
(i) The vehicle is of limited production or of custom manufacture.
(ii) The insurer does not have a rate lawfully in effect for the type of vehicle.
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(iii) The vehicle represents exposure to extraordinary expense for repair or replacement under
comprehensive or collision coverage.
(f) Use of a vehicle insured or to be insured for transportation of passengers for hire, for rental purposes, or
for commercial purposes. Rules under this subdivision must not be based on the use of a vehicle for volunteer
or charitable purposes or for which reimbursement for normal operating expenses is received.
(g) Payment of a minimum deposit at the time of application or renewal, not to exceed the smallest deposit
required under an extended payment or premium finance plan customarily used by the insurer.
(h) For purposes of requiring comprehensive deductibles of not more than $150.00, or of refusing to insure
if the person refuses to accept a required deductible, the claim experience of the person with respect to
comprehensive coverage.
(i) Total abstinence from the consumption of alcoholic beverages except if such beverages are consumed
as part of a religious ceremony. However, an insurer shall not use an underwriting rule based on this
subdivision unless the insurer was authorized to transact automobile insurance in this state before January 1,
1981, and has consistently used such an underwriting rule as part of the insurer's automobile insurance
underwriting since being authorized to transact automobile insurance in this state.
(j) One or more incidents involving a threat, harassment, or physical assault by the insured or applicant for
insurance on an insurer employee, agent, or agent employee while acting within the scope of his or her
employment, if a report of the incident was filed with an appropriate law enforcement agency.
History: Add. 1979, Act 145, Eff. Jan. 1, 1981;Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981;Am. 1984, Act 7, Imd. Eff. Feb. 1,
1984;Am. 1984, Act 350, Eff. Mar. 29, 1985;Am. 1988, Act 43, Eff. Mar. 30, 1989;Am. 2002, Act 492, Eff. Mar. 31, 2003;
Am. 2007, Act 35, Imd. Eff. July 11, 2007;Am. 2019, Act 21, Imd. Eff. June 11, 2019.
Compiler's note: 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
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
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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
500.2120 Automobile insurance; establishment of underwriting rules by affiliated insurers;
applicability of subsection (1); compliance; separate rating plans; applicability of
subsection (2); underwriting rules defining applicable rating plan; basis of underwriting
rules.
Sec. 2120. (1) Affiliated insurers may establish underwriting rules so that each affiliate will provide
automobile insurance only to certain eligible persons. This subsection applies only if an eligible person can
obtain automobile insurance from 1 of the affiliates. The underwriting rules must be in compliance with this
section and sections 2118 and 2119.
(2) An insurer may establish separate rating plans so that certain eligible persons are provided automobile
insurance under 1 rating plan and other eligible persons are provided automobile insurance under another
rating plan. This subsection applies only if all eligible persons can obtain automobile insurance under a rating
plan of the insurer. Underwriting rules consistent with this section and sections 2118 and 2119 must be
established to define the rating plan applicable to each eligible person.
(3) Underwriting rules under this section must be based only on the following:
(a) With respect to a vehicle insured or to be insured, substantial modifications from the vehicle's original
manufactured state for purposes of increasing the speed or acceleration capabilities of the vehicle.
(b) Except as otherwise provided in section 2116a or 2116b, failure of the person to provide proof that
insurance required by section 3101 was maintained in force with respect to any vehicle owned and operated
by the person or by a member of the household of the person during the 6-month period immediately
preceding application or renewal of the policy. The proof must take the form of a certification by the person
that the required insurance was maintained in force for the 6-month period with respect to the vehicle.
(c) For purposes of insuring persons who have refused a deductible lawfully required under section
2118(2)(h), the claim experience of the person with respect to comprehensive coverage.
(d) Refusal of the person to pay a minimum deposit required under section 2118(2)(g).
(e) A person's insurance eligibility point accumulation under section 2103(1)(h), or the total insurance
eligibility point accumulation of all persons who account for 10% or more of the use of 1 or more vehicles
insured or to be insured under the policy.
(f) The type of vehicle insured or to be insured as provided in section 2118(2)(e).
History: Add. 1979, Act 145, Eff. Jan. 1, 1981;Am. 1980, Act 461, Imd. Eff. Jan. 15, 1981;Am. 1984, Act 350, Eff. Mar. 29,
1985;Am. 2007, Act 35, Imd. Eff. July 11, 2007;Am. 2019, Act 21, Imd. Eff. June 11, 2019.
Compiler's note: 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
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.
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(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
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
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
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
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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
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
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
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
Rendered Tuesday, August 27, 2024 Page 20 Michigan Compiled Laws Complete Through PA 122 of 2024
Courtesy of www.legislature.mi.gov
500.2128 Repealed. 1986, Act 10, Imd. Eff. Feb. 28, 1986.
Compiler's note: 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
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
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
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
Rendered Tuesday, August 27, 2024 Page 21 Michigan Compiled Laws Complete Through PA 122 of 2024
Courtesy of www.legislature.mi.gov
500.2134-500.2138 Repealed. 1991, Act 191, Eff. Apr. 1, 1992.
Compiler's note: 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
Rendered Tuesday, August 27, 2024 Page 22 Michigan Compiled Laws Complete Through PA 122 of 2024
Courtesy of www.legislature.mi.gov