RETURN OF INSURANCE PREMIUM FOR EXCESSIVE

OR UNFAIRLY DISCRIMINATORY RATES

House Bill 5558

Sponsor:  Rep. Shanelle Jackson

House Bill 5559

Sponsor:  Rep. Gino Polidori

Committee:  Insurance

Complete to 3-19-08

A PRELIMINARY SUMMARY OF HOUSE BILLS 5558 & 5559 AS INTRODUCED 12-12-07

Each bill would amend the Insurance Code to specify that if the commissioner of the Office of Financial and Insurance Services (OFIS) disapproves a rate filing because the rates are excessive or unfairly discriminatory, he or she could order a refund of premiums to affected policyholders (as long as the amount is substantial and equals or exceeds the cost of making the refund).

House Bill 5558 would apply to automobile and home insurance rates and would amend Section 2114, which allows a person or organization aggrieved by a rate filing to request the commissioner of OFIS to hold a hearing.  House Bill 5559 would amend Section 2418, which deals with casualty insurance rates, and Section 2618, which deals with fire and inland marine rates.

MCL 500.2114 et al.

FISCAL IMPACT:

A fiscal analysis is in process.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Mark Wolf

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.