The petition form for a 2010 ballot initiative calling for a 20 percent cut in auto insurance rates won approval of a state elections panel Monday.

The proposal also would slash rates by another 20 percent for good drivers who have no points on their driving record in the past six years and ban insurance companies from using credit history to set premiums.

The Board of State Canvassers voted 4-0 to approve the petition form.

Kim Bowman, an aide to Sen. Hansen Clarke, D-Detroit, who is backing the proposal, said the "inability to do anything through the Legislature" on this issue is part of the reason he's moving ahead with a ballot strategy. Gov. Jennifer Granholm also has called for a 20 percent cut in car insurance rates.

Bowman said she could not comment on when petition circulation would begin, whether the coalition behind the proposal called Fair and Accountable Insurance Rates would hire a firm to collect signatures or how much money the group intends to raise for the petition drive.

More than 304,000 valid signatures are required, according to the Secretary of State's Office. The group has 180 days to collect signatures once it begins circulating the petition.

For the full article, see Mark Hornbeck, "Petition OK'd for insurance cut plan; Group hopes to get initiative to slash auto rates on ballot", Detroit News, November 10, 2009.

A bill by state Sen. Martha Scott, D-Highland Park, that would ban insurance companies from using territorial ratings to help set rates was soundly defeated last week in the Republican-controlled Senate. That action, without a public hearing, was a big disappointment for Scott and for many others who believe, with reason, that insurance companies shouldn't penalize drivers for where they live.

Still, the defeat of Scott's bill should not end efforts to control unaffordable urban insurance rates. Give some credit to Sen. Alan Sanborn, R-Richmond, chairman of the Senate Economic Development and Regulatory Reform Committee, for at least acknowledging the problem and calling on the Legislature to find ways to lower rates for residents of Detroit and other cities. Peter Kuhnmuench of the Insurance Institute of Michigan also appears to grasp how unaffordable urban insurance rates have become and says he's eager to work on solutions.

For the full editorial, see "Find compromise on car insurance rates; Urban crisis demands attention now", Detroit Free Press, November 6, 2009.

The Republican-led Michigan Senate has killed legislation that would have banned auto insurers from considering where a driver lives when setting rates.

Democrats say the practice is unfair to motorists who pay higher premiums in urban areas even if they have good driving records.
Republicans say rates would go up elsewhere if insurers could not charge more in riskier areas with more car thefts.

Republicans discharged the bill from committee Wednesday without having a hearing, which drew criticism from Democrats.

For the full article, see "Michigan Senate rejects auto insurance change", Lansing State Journal, October 29, 2009.

Approximately 176,900 people in Michigan lost health insurance coverage in 2009 due to a rise in unemployment, according to a report issued today by the health consumer organization Families USA.

According to the report, the state’s average unemployment rate in 2008 was 8.4 percent, while the average rate this year was 13.6 percent, thereby resulting in losses of health coverage. At 15.3 percent in September, Michigan’s rate remains the highest in the country.

The Families USA report is based on the link between rising unemployment and health insurance coverage losses. Most Americans – 61.9 percent of those under the age of 65 – get their health coverage through their own job or that of a family member. Job loss usually means loss of health coverage because other options, such as COBRA and individual coverage, are usually prohibitively expensive.

Nationwide, the unemployment rate in 2008 averaged 5.8 percent, ranging from 4.8 percent to 7.2 percent. In 2009, the unemployment rate through August rose to an average of 8.9 percent, ranging from 7.6 percent to 9.7 percent. The average number of people unemployed in 2008 was just under 9 million, and this average has grown so far to 13.7 million in 2009.

Based on this rise in unemployment, the Families USA report estimates that the number of uninsured working-age adults rose by 4 million – and, as a result, the total number of uninsured Americans now exceeds 50 million.

“People who receive a pink slip experience a double whammy,” said Ron Pollack, Executive Director of Families USA. “They not only lose their jobs but they usually lose their health coverage as well. That’s why health care reform is so important. It will protect America’s families when they lose or switch jobs.”

Sharon Parks, president and CEO of the Michigan League for Human Services, a group that advocates for low-income families, agreed. “As so many breadwinners lose their paychecks in Michigan, it’s crushing to realize that you’re losing your family’s health care coverage, too. We have a fairly strong safety net for kids, but adults are often left twisting in the wind and go without."

One-Two Punch: Unemployed and Uninsured takes a more in-depth look at the link between unemployment and uninsurance to get a clearer picture of the crisis of the uninsured. The report provides state-by-state numbers showing the likely magnitude of the increase in the uninsured due to rising unemployment. (October 2009)

Source : Michigan League for Human Services Press Release.

Can an insurance company simply disregard Michigan's building code?

Probably not, said Jason Moon, of the state Office of Financial and Insurance Regulation. Moon said if AAA had persisted in its attempt to terminate a homeowner's coverage based on a false assumption, somebody in his office would have encouraged her to file a formal complaint.

Moon invited people with questions to call his office (877) 999-6442.

For the full article, see John Schneider, "Insurance incident takes measuring tape to policies", Lansing State Journal, October 20, 2009.