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This is what The Insurance Journal says about Granholm and Dem legislators recent efforts-

"headline grabbing proposals unveiled one year before a major election are commonplace; however, what is not common is introduction of dangerous proposals that will increase insurance rates and ultimately harm Michigan's already vulnerable economy."

History tells these insurance pro’s that the Governor's plan will drive rates up instead of down. Is this just another example of buying votes at the expense of taxpayers or incompetence? You know her record; you be the judge!

Full article follows…

Michigan Governor, Democrats Introduce Insurance Reform Package

Insurance Journal

February 1, 2006  

Gov. Jennifer Granholm and Democratic legislators introduced a multi-bill insurance reform package this week that is designed to reduce insurance rates. The National Association of Mutual Insurance Companies said industry advocates agree that the proposals will have just the opposite effect.

The cornerstone of the package includes proposals requiring a 20 percent cut in homeowners and automobile insurance rates and a proposal to ban the use of credit-based insurance scoring.

When the proposals were originally unveiled last October, Indianapolis-based NAMIC released a statement saying that "headline grabbing proposals unveiled one year before a major election are commonplace; however, what is not common is introduction of dangerous proposals that will increase insurance rates and ultimately harm Michigan's already vulnerable economy."

The Michigan Insurance Council agreed that the legislation will not only raise rates, "it will add to the growing list of incentives the governor has created for insurance companies to leave."

The Insurance Institute of Michigan added: "A mandated rollback in California led to increased regulatory bureaucracy and costs and did not directly reduce insurance costs overall. Insurance rates in California have decreased because of corresponding reductions in losses."

The insurance reform package includes the following proposals:

HB 5597 equires annual statement to disclose, by zip code, number of policies applied for, polices issued and number of policies canceled/non renewed for auto and homeowners insurance. Also requires written premium, number of incurred claims and number of exposures. Insurers would also be required to disclose race and gender of applicants and insureds.
SB 988/HB 5582 would require rollback of auto and home rates reflecting a reduction of at least 20 percent of average rate charged for all coverages on Oct. 1, 2005.
SB 989/HB 5584 requires discount plan for FAIR Plan among other provisions.
SB 990 changes basis for rates in auto facility to top 10 insurers.
HB 5585 deletes territorial surcharge provision and requires a discount plan.
SB 991/HB 5586 state if commissioner disapproves filing because rates are excessive or unfairly discriminatory, refunds may be ordered if the amount is substantial and equals or exceeds the cost of making the refund.
SB 992/HB 5587 bans use of credit-based insurance scores, requires base rate reduction by ratio of 2005 earned premium with and without use of insurance score and if insurer fails to make base rate filing, creates presumption that filing does not conform to rate standards.
SB 993/HB 5588 requires commissioner to develop a comprehensive consumer awareness program designed to educate residents on specific actions that can be taken to reduce home and auto premiums.
SB 994/HB 5583 allows commissioner to find that rates are excessive without finding lack of competition.
SB 995/HB 5592 allows Consumer Protection Act to apply to insurance-related activities.
SB 996/HB 5591 removes allowable underwriting rule based on proof of prior insurance.
SB 997/HB 5596 producer compensation disclosure.
SB 998/HB 5590 creates Office of Public Insurance Counsel within OFIS to advocate for consumers.
SB 999/HB 5595 prohibits putting MCCA assessment on declaration page unless it's labeled "Michigan Catastrophic Claims Association Assessment" and reflects only the per vehicle amount the insurer is assessed among other provisions.
SB 1000 changes definition of "serious impairment of body function" to mean any objectively manifested injury involving an important body function that, in some way and for some time, affected the injured person's ability to lead his or her normal life.
SB 1001/HB 5589 requires commissioner to develop a comprehensive community education program designed to educate community leaders as to the steps they can take to reduce home and auto premiums in their communities.
SB 1002/HB 5594 changes class for listed felonies.
SB 1003/HB 5593 amends Sec. 150 to increase fines, allow commissioner to order refunds and restitution, including costs and attorney fees; allows summary suspension of license without prior hearing upon finding need for emergency action; subpoena powers; adjustment of fines based on CPI.

NAMIC said it is working in close coordination with MIC and IIM to encourage legislators to defeat every bill in this package.