This 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 modifies the underwriting rules that insurers can use, ensuring they are based on specific criteria such as the vehicle's modifications and the insurance eligibility point accumulation of household members.

Additionally, the bill repeals section 2116a, which previously contained provisions that may have restricted access to insurance based on past insurance lapses. The amendments clarify the conditions under which insurers can establish underwriting rules and rating plans, ensuring that these rules are fair and do not unjustly penalize individuals for past insurance issues. Overall, the bill aims to create a more equitable insurance landscape for eligible persons in Michigan.

Statutes affected:
Senate Introduced Bill: 500.2116