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.
This premium content is locked for FC&S Coverage Interpretation Subscribers
Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.
- Quality content from industry experts with over 60 years insurance experience, combined
- Customizable alerts of changes in relevant policies and trends
- Search and navigate Q&As to find answers to your specific questions
- Filter by article, discussion, analysis and more to find the exact information you’re looking for
- Continually updated to bring you the latest reports, trending topics, and coverage analysis
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected]Christine G. Barlow, CPCU
Christine G. Barlow, CPCU, is Executive Editor of FC&S Expert Coverage Interpretation, a division of National Underwriter Company and ALM. Christine has over thirty years’ experience in the insurance industry, beginning as a claims adjuster then working as an underwriter and underwriting supervisor handling personal lines. Christine regularly presents and moderates webinars on a variety of topics and is an experienced presenter.