The Michigan House of Representatives passed an almost certainly futile package of bills on Wednesday to reform the auto insurance business in the state. The series of bills would set new limits on what kinds of considerations the insurance companies can use in setting auto insurance premiums. The bills that passed the House today will:
• Prohibit rate increases on good drivers who are not at fault in accidents.
• Make it illegal for insurance companies to use irrelevant factors such as a driver’s occupation, education level or credit history rather than objective factors such as a driving record — to deny coverage or set rates.
• Prohibit insurance companies from selling consumers’ personal information without their consent.
• Prohibit Insurance Commissioners from going to work for an insurance company within two years of leaving office.
In a press release, Rep. Barb Byrum (D-Onandaga) said, “Insurance companies are making massive profits at the expense of our middle-class families because Michigan law fails to protect consumers. Our plan will hold insurance companies accountable to our consumers and crack down on secret pricing practices the industry uses to charge unfair rates.”
Now it heads to the Republican-controlled Senate, where it has little if any chance of even getting a vote, much less passing.