This bill amends the Michigan Insurance Code of 1956 by modifying sections 2116b, 2118, and 2120. A significant change is the insertion of language that prohibits automobile insurers from refusing to insure or continuing to insure an eligible person solely based on their previous failure to maintain required insurance for a vehicle. The bill also removes a provision that limited this protection to those applying for insurance before January 1, 2022. Additionally, it updates 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.

Furthermore, the bill repeals section 2116a and makes several adjustments to the underwriting rules, including the removal of outdated criteria related to proof of prior insurance and the introduction of new provisions regarding the claim experience of the insured. The changes aim to create a more equitable insurance landscape for eligible individuals while ensuring that insurers can still assess risk based on relevant factors. Overall, the bill seeks to enhance access to automobile insurance for individuals who may have previously faced barriers due to lapses in coverage.

Statutes affected:
Senate Introduced Bill: 500.2116