The insurance industry got a reprieve in late December when the state Senate adjourned without taking up legislation passed by the House of Representatives that carriers say would have stripped insurers of underwriting tools, including credit-based insurance scoring, used to more accurately assess risk and set actuarially sound rates.
It also would have led to higher rates and possibly higher unemployment in Michigan, industry representatives said. The insurance industry employs around 55,000 people in the state.
House Democrats, who hold a majority in that legislative body and backed the auto insurance reform legislation, said the bills would protect consumers and lower rates. One measure passed by the House would prohibit using a driver’s education level, credit history or occupation to determine rates; another would prohibit rate increases for
drivers who are not at fault in accidents.
The House did not vote on a measure requiring companies to get prior approval from the state insurance commissioner before raising rates.
Republicans who largely opposed the bills have a majority in the Michigan Senate.
Associated Press reports contributed to this story.
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