Essential Insurance Act, home and automobile insurance eligibility, rating and cancellation

What this document is

Michigan Insurance Code of 1956, Chapter 21 - Essential Insurance Act, home and automobile insurance eligibility, rating and cancellation (MCL 500.2101 to 500.2131, 39 sections) is a state statute published by Michigan Legislature (www.legislature.mi.gov). It is one of the Michigan documents that insurance license exam questions are written from, including michigan property & casualty, michigan personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• MCL 500.2117(3) (Home insurance; provisions applicable to repair cost policy)

  “(3) If an insurer establishes an underwriting rule based on the relationship between the market value and replacement cost under subsection (2)(d), both of the following apply to the repair cost policy: (a) The insurer shall offer the repair cost policy with deductibles, terms and conditions,...”

• MCL 500.2103(3) (Definitions; E to I; home insurance)

  “(3) "Home insurance" means any of the following, but does not include insurance intended to insure commercial, industrial, professional, or business property, obligations, or liabilities: (a) Fire insurance for an insured's dwelling of a type described in subsection (2). (b) If contained in or...”

• MCL 500.2117(2)(g) (Home insurance; underwriting rules; vacancy)

  “Whether a dwelling has been unoccupied for more than 60 days, if there is evidence of an intent to vacate or keep the premises vacant or unoccupied, as to the applicant or insured.”

• MCL 500.2123(4) (Termination of insurance; conformity with underwriting rules)

  “A termination of insurance shall not be effective unless the termination is due to reasons which conform to the underwriting rules of the insurer for that insurance.”

• MCL 500.2103(2)(a) and (a)(i) (Definitions; eligible person for home insurance)

  “(a) A person who has been convicted, in the immediately preceding 5-year period, of 1 or more of the following: (i) Arson, or conspiracy to commit arson.”

• MCL 500.2117(2)(b) (Home insurance; underwriting rules; physical condition)

  “The physical condition of the property insured or to be insured, if the underwriting rules are objective, are directly related to the perils insured against, and, without regard to the age of the structure, are based on the specific provisions of a national, state, or local housing and safety code,...”

• MCL 500.2117(1) (Home insurance; condition of maintaining insurer's certificate of authority)

  “As a condition of maintaining its certificate of authority, an insurer shall not refuse to insure, refuse to continue to insure, or limit the coverage available to an eligible person for home insurance, except in accordance with underwriting rules established under this section and section 2119.”

• MCL 500.2103(2)(b) and (c) (Definitions; eligible person for home insurance)

  “(b) A person who has been successfully denied, within the immediately preceding 5-year period, payment by an insurer of a claim under a home insurance policy based on evidence of arson, conspiracy to commit arson, fraud, or conspiracy to commit fraud, committed by or on behalf of the person. (c) A...”

• MCL 500.2123(1) to (3) (Termination of insurance; notice; effective date)

  “(1) Except as provided in subsection (2) or (3), a termination of insurance shall not be effective unless the insurer, at least 30 days prior to the date of termination, delivers or mails to the named insured at the person's last known address a written notice of the termination. The notice shall...”

• MCL 500.2117(2)(i) and (j) (Home insurance; basis of underwriting rules)

  “(i) The failure of the insured or applicant to purchase an amount of insurance in excess of 80% of the replacement cost of the property to be insured under a replacement cost policy, if both of the following conditions are met: (i) The purchase of an amount of insurance in excess of 80% of the...”

• MCL 500.2122(1) and (2) (Declination of insurance; explanation of reasons)

  “(1) An insurer or agent, upon making a declination of insurance, shall inform the applicant of each specific reason for the declination. If the application or request for coverage was made in writing, the insurer or agent shall provide the explanation of reasons in writing. If the application or...”

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• Michigan Administrative Code R 500.1301 to R 500.1310 - Fire and Inland Marine Insurance Rates (complete rule set, 10 rules)Regulation
• Michigan Administrative Code R 500.1351 to R 500.1359 - Workers' Compensation Insurance (complete rule set, 8 rules)Regulation
• Michigan Administrative Code R 500.1371 to R 500.1387 - Advertisement of Life Insurance and Annuities (complete rule set, 8 rules)Regulation
• Michigan Administrative Code R 500.551 to R 500.560 - Standards for Safeguarding Customer Information (complete rule set, 10 rules)Regulation
• Michigan Administrative Code R 500.651 to R 500.669 - Accident and Sickness Insurance Advertising (complete rule set, 20 rules)Regulation
• Michigan Aftermarket Crash Parts Act (Act 158 of 1991), complete Act (MCL 257.1361 to 257.1364, 4 sections)State statute
• Michigan Health Care False Claim Act (Act 323 of 1984), complete Act (MCL 752.1001 to 752.1011, 15 sections)State statute
• MCL Chapter 500, Insurance Code of 1956, Chapter 20 - Unfair and Prohibited Trade Practices and Frauds (selected Secs. 500.2003-500.2026)State statute