The Michigan Department of Insurance and Financial Services is the latest department to issue a bulletin addressing insurers refusing to provide coverage for certain model Kia and Hyundai vehicles because of increased thefts of those models. The bulletin reminds insurers that they are required to offer coverage to all "eligible persons" and that failing to do so may result in a violation of the Essential Insurance Act.

The insurance code MCL§ 500.2118 specifically prohibits insurers from refusing to insure, refusing to continue to insure, or limiting coverage available to eligible persons except as specified in Section 2118. The bulletin references section 2118 (2)(e) which reads as follows:

(e) Type of vehicle insured or to be insured, based on 1 of the following, without regard to the age of the vehicle:

(i) The vehicle is of limited production or of custom manufacture.

(ii) The insurer does not have a rate lawfully in effect for the type of vehicle.

(iii) The vehicle represents exposure to extraordinary expense for repair or replacement under comprehensive or collision coverage.