News > Local News
Ballot question seeks reduction in insurance rates
Thursday, November 12, 2009By CHARLES CRUMM
Of The Oakland Press
A ballot proposal to overhaul Michigan home, auto and business insurance has insurers seeing red.
Wording of the proposal, approved by the state Board of Canvassers Monday, would have the effect of cutting insurance rates for autos, homes and businesses by 20 percent, and auto insurance an additional 20 percent for good drivers.
If approved, it would make it harder for insurers to do business in Michigan, says the Property Casualty Insurers Association of America.
Some lawmakers are supporting the ballot issue since legislation to accomplish much the same thing was squashed in the state Senate in late October.
“It’s so radical,” said Ann Weber, vice president of state government relations for the PCIAA.
“It would completely revamp the way the insurance industry does business in Michigan,” Weber said. “It limits the types of products that can be offered. When you do that, there’s a greater likelihood that there’ll be less businesses that want to write in Michigan, which doesn’t benefit anyone at all.”
The ballot proposal was put forth by Lansing-based group Fair Affordable Insurance Rates. Legislation similar to the ballot proposal was defeated by the Republican-led Michigan Senate.
The action of the Board of State Canvassers Monday certified the wording on the ballot proposal, which gives organizers until May 26 to gather 304,101 valid signatures on petitions.
How insurers set rates is at the heart of the legislation that was defeated in a Senate committee and the wording of the ballot proposal.
For drivers, the proposal would set rates based on driving records and eliminate rate setting based on geographic area or credit scoring.
State Sen. Gilda Jacobs, D-Huntington Woods, was a sponsor of the legislation that failed in the Senate.
She notes that rates are much higher for residents in Detroit — a couple miles away — than for residents in her town.
“The feeling probably was, in order to make some changes, we’re going to have to go to a ballot proposal,” Jacobs said. “Redlining is a problem. It’s something I’m pretty sensitive to and we should try to force the hands of the insurance companies, one of the few businesses making a lot of money in this state.”
Changes in how insurers set rates have also been a priority for Detroit Democrat Sen. Martha Scott, who notes Detroiters pay rates five times higher than suburbanites for auto insurance.
How many proposals appear on the November ballot in 2010 depend on how successful groups are in gathering petition signatures.
Currently, there is only one ballot proposal qualified to appear on the Nov. 2, 2010, general election ballot. That’s the question that’s constitutionally-required every 16 years of whether the state should hold a constitutional convention.
Besides the insurance reform question, groups also are seeking to circulate petitions for two other ballot questions.
The Hazel Park-based group Racing to Save Michigan proposes a constitutional amendment to allow eight new casinos in Michigan, five of which would be located at horse racetracks.
And the Detroit-based Michigan Save Our Water Committee proposes a legislative initiative to regulate uranium mining.
Wording of the proposal, approved by the state Board of Canvassers Monday, would have the effect of cutting insurance rates for autos, homes and businesses by 20 percent, and auto insurance an additional 20 percent for good drivers.
If approved, it would make it harder for insurers to do business in Michigan, says the Property Casualty Insurers Association of America.
Some lawmakers are supporting the ballot issue since legislation to accomplish much the same thing was squashed in the state Senate in late October.
“It’s so radical,” said Ann Weber, vice president of state government relations for the PCIAA.
“It would completely revamp the way the insurance industry does business in Michigan,” Weber said. “It limits the types of products that can be offered. When you do that, there’s a greater likelihood that there’ll be less businesses that want to write in Michigan, which doesn’t benefit anyone at all.”
The ballot proposal was put forth by Lansing-based group Fair Affordable Insurance Rates. Legislation similar to the ballot proposal was defeated by the Republican-led Michigan Senate.
The action of the Board of State Canvassers Monday certified the wording on the ballot proposal, which gives organizers until May 26 to gather 304,101 valid signatures on petitions.
How insurers set rates is at the heart of the legislation that was defeated in a Senate committee and the wording of the ballot proposal.
For drivers, the proposal would set rates based on driving records and eliminate rate setting based on geographic area or credit scoring.
State Sen. Gilda Jacobs, D-Huntington Woods, was a sponsor of the legislation that failed in the Senate.
She notes that rates are much higher for residents in Detroit — a couple miles away — than for residents in her town.
“The feeling probably was, in order to make some changes, we’re going to have to go to a ballot proposal,” Jacobs said. “Redlining is a problem. It’s something I’m pretty sensitive to and we should try to force the hands of the insurance companies, one of the few businesses making a lot of money in this state.”
Changes in how insurers set rates have also been a priority for Detroit Democrat Sen. Martha Scott, who notes Detroiters pay rates five times higher than suburbanites for auto insurance.
How many proposals appear on the November ballot in 2010 depend on how successful groups are in gathering petition signatures.
Currently, there is only one ballot proposal qualified to appear on the Nov. 2, 2010, general election ballot. That’s the question that’s constitutionally-required every 16 years of whether the state should hold a constitutional convention.
Besides the insurance reform question, groups also are seeking to circulate petitions for two other ballot questions.
The Hazel Park-based group Racing to Save Michigan proposes a constitutional amendment to allow eight new casinos in Michigan, five of which would be located at horse racetracks.
And the Detroit-based Michigan Save Our Water Committee proposes a legislative initiative to regulate uranium mining.
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