The Office of Financial and Insurance Regulation (OFIR) has issued rules prohibiting three types of clauses found in insurance policies that consumers have found misleading or harmful. Consumer complaints suggested that many policyholders were being harmed by certain clauses in insurance policies. The rules now prohibit insurers from inserting clauses into insurance policies that:
As of August 1, 2010, insurers are prohibited from using these nonconforming clauses in any new or revised insurance policy. By September 1, 2010, insurance companies must submit to OFIR a list of forms in use in Michigan that contain one or more of these nonconforming clauses, or a letter certifying that the company has no forms currently in effect containing any the clauses.
To review the rule set, visit: http://www.state.mi.us/orr/emi/admincode.asp?AdminCode=Single&Admin_Num=50002231&Dpt=LG&RngHigh