Michigan Senate Bill SB0708

Michigan 2023-2024 Regular Session

• Introduced: 2/7/24
• Refer: 2/7/24
• Report Pass: 2/14/24
• Engrossed: 2/14/24
• Refer: 2/14/24
• Report Pass: 11/14/24

Caption

Insurance: no-fault; penalties for lapse of insurance policy; provide waiver for certain individuals. Amends sec. 2120 of 1956 PA 218 (MCL 500.2120). TIE BAR WITH: SB 0709'24, SB 0282'23

Impact

By modifying the insurance code, SB0708 will directly influence the underwriting processes set forth by affiliated insurers, granting them greater flexibility in their rating plans. The provisions related to the failure of individuals to provide proof of maintained insurance during a certain period (six months) are significant, as they establish a clearer framework for determining eligibility and insurance terms. The bill also ties into the broader legislative context, being linked with the successful enactment of two other bills, suggesting a coordinated approach to reforming insurance regulations within Michigan.

Summary

Senate Bill No. 708 seeks to amend the 1956 PA 218, specifically targeting provisions related to automobile insurance underwriting and eligibility. The bill allows affiliated insurers to set specific underwriting rules for providing automobile insurance to eligible persons, aiming to enhance their ability to manage risk and tailor policies according to the characteristics of different vehicle owners. Moreover, it establishes the conditions under which insurers may develop separate rating plans for various categories of insured individuals. This is meant to create a more efficient insurance model that could potentially lower costs for consumers through better risk assessment practices.

Sentiment

The general sentiment around SB0708 among legislators appears supportive, as the bill passed the Senate with a significant majority (31 yeas to 7 nays). Proponents argue that the bill will modernize the insurance framework in Michigan, likely benefiting both insurers and consumers by allowing for more tailored policies and potentially lower premiums. However, there may be concerns among consumer advocacy groups regarding how these changes will affect policyholders and the transparency of underwriting criteria.

Contention

Despite its support, there may be notable points of contention surrounding the bill, particularly regarding the implications for individuals who may struggle to meet the new eligibility criteria. Critics of such amendments often raise concerns that stricter underwriting rules might inadvertently exclude high-risk individuals or those seeking affordable coverage options. The necessity for certain legislative tie-ins indicates a complex political interplay, with stakeholders likely engaging in discussions over the potential socioeconomic impacts of these reforms on insured persons within the state.