Ratemaking; use of price optimization; unfair method of competition; deceptive at or practice.
MCL 500.2027a
in effect500.2027a. Ratemaking; use of price optimization; unfair method of competition; deceptive at or practice.
Sec. 2027a.
(1) It is an unfair method of competition and an unfair or deceptive act or practice in the business of insurance for a property and casualty insurer to use price optimization in ratemaking.
(2) As used in this section:
(a) "Engage in activities that result in insurance policy turnover" includes, but is not limited to, any of the following:
(i) Shopping with other insurers for a lower premium.
(ii) Canceling a policy before the expiration of the policy term.
(iii) Failing to renew a policy at the renewal of the policy term.
(iv) Complaining to the insurer or the insurer's agent or representative.
(b) "Price optimization" means a practice to charge based on an insured's price tolerance that results in rate or premium adjustments that are not actuarially justified and based on factors that are unrelated to risk of loss or expense, including, but not limited to, any of the following:
(i) Considering the likelihood that the insured will engage in activities that result in insurance policy turnover.
(ii) Estimating the willingness of the insured to pay a higher premium compared to other insureds.
(iii) Using any measure of a consumer's or group of consumers' price elasticity of demand.
Add. 2026, Act 98, Imd. Eff. Sept. 21, 2026
[PopularName] Act 218
Source: Michigan Legislature (legislature.mi.gov)URL: https://legislature.mi.gov/Laws/MCL?objectName=mcl-500-2027aFetched: 10/20/2026