• The Senate Democratic Caucus believes no one should have to worry about unaffordable insurance.
• Access to reasonably priced home and automobile insurance, protection against identity theft, medical information privacy, credit scoring and redlining are just a few of the issues that thousands of Michigan residents deal with every day.
• Democrats have sponsored a host of bills addressing unfair insurance pricing. The chairman of the Senate Banking and Financial Institutions committee has not taken up one piece of our legislation.
• We’ve submitted Senate Bills 23, 25, 26, 29, 38, 39 and 200, just to name a few.
• These bills address good faith dealings on insurance claims, credit scoring, rate setting, claims data reporting, and rate increases.
• We held redlining hearings across the state and found that residents in Detroit , Muskegon , and Saginaw were almost evenly split on their insurance concerns.
• They were most concerned with redlining (39 percent) and access to affordable insurance (35 percent).
• Nearly 8 out of 10 (78 percent) people felt that they did not have enough information about their insurance options.
• Almost two-thirds (63 percent) of respondents stated that they have had to go without home or auto insurance coverage at one time because they could not afford it.
• More than half (56 percent) were not satisfied or very unsatisfied with their insurance carrier or carriers.
• Sixty percent of respondents said they received most of their insurance information from insurance agents, while 31 percent get most of their information from friends and coworkers.

Michigan’s Situation

• Redlining is a problem not many elected officials want to tackle. Three years ago, one candidate for a state-wide office promised to end excessive rate increases and charges (redlining). It remains an issue.
• The Office of Financial and Insurance Services has proposed rules to stop insurers from using credit scores to determine rates as July 1, 2005 .
• For a complete list of which insurance companies use credit scoring visit:
  http://www.michigan.gov/cis/0,1607,7-154-10555_12902_15784-111965--,00.html#auto_yes

Auto Coverage
Increases in average auto insurance premiums by Michigan region, 1995-2003 (the latest year of record):

• North Central Detroit: 126 percent
  Northeast Detroit: 125 percent
  Southwest Detroit: 122 percent
  Northwest Detroit: 116 percent
  South Central Detroit: 113 percent
  Pontiac: 71 percent
  Flint: 70 percent
  Wyandotte: 56 percent
  Saginaw: 56 percent
  Grand Rapids: 51 percent
  Macomb: 50 percent
  Ypsilanti: 50 percent
  Marquette: 48 percent
  Lansing: 46 percent
  Kalamazoo: 42 percent
  Traverse City: 42 percent

Home Coverage
Premiums charged by State Farm on a single-family home insured for $100,000 in select cities:

Insurance Industry Perspective

• Insurers use scare tactics to pit out-county residents against city residents.
• Fair rates for Detroit do not mean higher rates for suburban customers. Increases would be moderate, if at all.
• Insurance providers believe their use of credit scoring is ethical and necessary. One industry representative said, “Our impression is if you're willing to take risks on (the financial) side of your life, those behavior patterns are going to probably translate through to the rest of your life, not making repairs on your car or driving fast.” 
• A recent study found 92 percent of insurers nationwide use credit scores in accepting polices and/or setting rates. 
• In Michigan , the transgressors read like a Who's Who of the insurance world, including industry giants Allstate and Progressive.
• Credit scores are notorious for containing incorrect information that results in countless applicants being denied for loans and credit cards.
• Michigan residents can now get free credit reports. Call 1-877-322-8228 or go to http://www.annualcreditreport.com to receive a free copy of your credit report.

Public Strategies  

• Write letters and make phone calls to the leaders of the Senate Banking & Financial Institutions committee by voicing your support for true, meaningful insurance reform in the state of Michigan .

• Shop around for the best insurance rates
• Join consumer groups
• Participate in on-line petitions
• Support candidates who represent your interests
• Visit my state website
• File complaints with the Office of Financial and Insurance Services if you believe you’ve been unfairly treated by an insurance company. You can reach them at www.michigan.gov/ofis or toll-free at 877-999-6442.