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May 5, 2009

Michigan Senate to Consider Prohibition on Premium Increases

Republican Rep. Tory Rocca’s HB 4070 suddenly moved out of committee as a substitute and passed the House in less than 24 hours last Thursday.

The aim of the measure is to prohibit insurers from increasing home or auto premiums during the term of the policy unless the premium was based on materially incorrect information given by the insured.

NAMIC opposes the measure until such time amendments are adopted allowing reasonable changes to premiums as part of sound business practices that the insurance industry relies on to keep premiums actuarially sound and fair for the public as a whole.

The bill has been referred to the Senate Economic Development and Regulatory Reform Committee. NAMIC is not currently asking you to take any action with the Michigan Legislature as the bill was assigned today. However, look for future alerts that may ask you to contact senators concerning amendments to the measure or its committee vote.

NAMIC does ask that you contact us with any feedback about how the bill in its current form would impact your organization.

Direct questions and comments to NAMIC State Affairs Manager Erin Collins.

Posted: Tuesday, May 05, 2009 12:00:00 AM. Modified: Tuesday, May 05, 2009 3:13:22 PM.

317.875.5250 - Indianapolis  |  202.628.1558 - Washington, D.C.

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