Preheader

 

Home Page Facebook Twitter LinkedIn YouTube Blog RSS Feed Header

Auto Insurance Homeowners Insurance Business Insurance Life and Health Insurance Post Header Line

On July 11, 2012, we posted a blog announcing the law that adopts positive changes to Michigan’s credit based insurance scores.  This article contains more specific information about what this new law will do for you when it takes effect in April 2013.

Michigan does not allow an insurance company to deny insurance or surcharge premiums because of credit based insurance scores.  Rather, they can only offer a discount off of their standard rates for a policyholder who has a good insurance score.  But make no mistake!  There can be a substantial premium difference based on a person’s insurance score.  And, to keep it confusing, each insurance company creates their own model (uses the elements within a credit score that they want to look at), and the model can vary from one type of insurance to another being offered by the same insurance company!  In other words, your insurance score is likely to be different from insurance company to insurance company, and it could be a different number for an auto policy than it would be for a homeowner policy offered by the same insurance company.  This new law provides some solid guidelines that all insurance companies will need to follow for Michigan policyholders.

According to the Michigan Association of Insurance Agents (MAIA) the new legislation will:

  • Prohibit insurers from using the negative factors in insurance scores such credit inquiries not initiated by the consumer, credit inquiries related to insurance coverage, collection accounts with medical codes, and multiple mortgage or automobile lending inquiries;
  • Allow policyholders to request a review by their carrier of Extenuating Life Circumstances such as the loss of employment or ID theft that might negatively impact their score;
  • Not penalize someone for the absence of credit information;
  • Require insurance companies to disclose to consumers that credit information is considered when determining premiums;
  • Allow policyholders to request a review of their insurance score at the time of their annual renewal; and
  • Require insurance companies to re-rate a person and to provide a refund to someone who has successfully challenged an error in their credit history.

For more information on your insurance policy or insurance scoring, call Insurance Planning Service at 800-225-5582 or use our online contact form today!

Share |


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version
HAPPY 4th of JULY!

Citizens Insurance
Grange Insurance
Hagerty
Hastings Mutual
Michigan Insurance Company
Philadelphia Insurance Companies
Get A Quote
 
       

Home   About Us   Contact   Blog   Partners   Privacy Policy


Lighthouse Group Main Office in Grand Rapids, MI
Mailing Address | P.O. Box 530009, Livonia, MI 48153

Phone: 734.421.9900 | Toll Free: 800.220.5582 | Fax: 734.421.9911

Also serving these Detroit area communities in Michigan: Livonia, Farmington Hills, Ann Arbor, Southfield, Plymouth, Canton, Westland, Northville, Novi, Dearborn, South Lyon & Walled Lake