The bill amends the Michigan Insurance Code of 1956 by revising sections 2116b, 2118, and 2120, with the aim of enhancing protections for eligible individuals seeking automobile insurance. Notably, it prohibits insurers from refusing coverage or increasing premiums based solely on a person's previous failure to maintain required insurance, thereby expanding access to insurance for those who may have had lapses in coverage. The bill also removes a previous stipulation that limited the application of this provision to individuals applying for insurance before January 1, 2022.

Additionally, the bill modifies the underwriting rules that insurers can use when determining eligibility for automobile insurance. It specifies that these rules must be based on certain criteria, such as the vehicle's modifications and the insurance eligibility point accumulation of household members, while eliminating outdated provisions related to proof of prior insurance. The bill also repeals section 2116a, which may have contained provisions that are now considered redundant or unnecessary. Overall, these changes aim to create a more equitable insurance landscape for Michigan residents.

Statutes affected:
Senate Introduced Bill: 500.2116