NU Online News Service, Dec. 23, 10:05 a.m.EST

The Michigan State Senate did not act on a package of billsopposed by insurance associations that would have banned the use ofcredit-based insurance scoring in the state.

The bills, which started as a package of 10 bills and wasreduced to five by the time it passed the House – would have alsoturned Michigan into a prior approval state.

According to Erin Collins, state affairs manager – Mid-Atlantic,for the National Association of Mutual Insurance Companies (NAMIC),the state currently uses a form of file and use for developing autorates.

Apart from objecting to the content in the bill package, insurerrepresentatives took issue with the speed in which the bills passedthrough the House. The package was introduced Dec. 1 and passedthrough the Committee on Insurance just two days later, Ms. Collinsnoted.

Ann Weber, vice president of state government relations for theProperty Casualty Insurers Association of America (PCI), alsocommented on how fast the House acted, stating, "That's not a goodway to develop public policy."

Some public officials in the state, including Insurance ConsumerAdvocate Melvin "Butch" Hollowell, contend that rates in the stateneed to be more affordable and have criticized rating factors suchas credit, education and occupation.

Insurer associations argue that high rates in the state stemfrom generous benefits associated with Michigan's no-faultcoverage.

Ms. Weber called Michigan's system the "Cadillac of no-fault,"and said insurers need to charge premiums accordingly.

Ms. Collins said she expects the Senate to take a "longerprocess" next year to look at insurance in the state.

Both Ms. Collins and Ms. Weber were more optimistic that theSenate would take more time to consider options than the Housedid.

Ms. Weber said the industry should have an opportunity to fullyvet proposals in the Senate. She added the Senate is "appreciativeof how the insurance industry contributes to the economy inMichigan" as a stable provider of jobs, and is more willing to workwith the industry than the House.