Michigan SB1013 prohibits insurers from using price optimization in setting auto and home insurance rates.

Michigan SB1013 amends sections 2109 and 2119 of the Michigan Compiled Laws to prohibit insurers from using price optimization in setting auto and home insurance rates. Price optimization involves establishing rates based on factors unrelated to risk of loss, such as charging the highest price the market will bear. The bill ensures rates are not excessive, inadequate, or unfairly discriminatory, and requires insurers to apply underwriting rules uniformly. Insurers must file their underwriting rules with the Michigan Department of Insurance and Financial Services for public inspection.

Michigan SB1013 prohibits insurers from using price optimization in setting auto and home insurance rates.

Michigan SB1013 amends sections 2109 and 2119 of the Michigan Compiled Laws to prohibit insurers from using price optimization in setting auto and home insurance rates. Price optimization involves establishing rates based on factors unrelated to risk of loss, such as charging the highest price the market will bear. The bill ensures rates are not excessive, inadequate, or unfairly discriminatory, and requires insurers to apply underwriting rules uniformly. Insurers must file their underwriting rules with the Michigan Department of Insurance and Financial Services for public inspection.