Michigan Office of Administrative Hearings and Rules  
611 W. Ottawa Street  
Lansing, MI 48909  
Phone: 517-335-8658 Fax: 517-335-9512  
AGENCY REPORT TO THE  
JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)  
1. Agency Information  
Agency name:  
Insurance and Financial Services  
Division/Bureau/Office:  
Insurance  
Name of person completing this form:  
Julie Agueros  
Phone number of person completing this form:  
517-284-8787  
E-mail of person completing this form:  
AguerosJ@michigan.gov  
Name of Department Regulatory Affairs Officer reviewing this form:  
Sarah Wohlford  
2. Rule Set Information  
MOAHR assigned rule set number:  
2020-25 IF  
Title of proposed rule set:  
Essential Insurance  
3. Purpose for the proposed rules and background:  
These rules: a) set forth standards for evaluating rates charged in relation to policies issued under the  
Chapter 21 of the Insurance Code of 1956, MCL 500.2101 to 500.2131 (also known as the Essential  
Insurance Act or EIA); b) establish procedures to be followed in processing requests for a “review  
and determination” and “private informal managerial level conference” under Section 2113 of the  
Insurance Code, MCL 500.2113; and c) set forth reporting and claim information requirements and  
procedures applicable to insurers. The proposed amendments will: a) clarify the processes applicable  
to review and determinations and private informal managerial level conferences; b) make technical  
changes to more clearly differentiate between the private informal managerial level conference that  
must precede a review and determination and the review and determination itself; c) provide for a  
remedy to be imposed by the Director to resolve a review and determination based on an incorrect  
premium charge; and d) make other general revisions for consistency and clarity.  
4. Summary of proposed rules:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 2  
These rules: a) set forth standards for evaluating rates charged in relation to policies issued under the  
Chapter 21 of the Insurance Code of 1956 (Code), MCL 500.2101 to 500.2131 (also known as the  
Essential Insurance Act or EIA); b) establish procedures to be followed in processing requests for a  
“review and determination” and “private informal managerial level conference” under Section 2113  
of the Code, MCL 500.2113; and c) set forth reporting and claim information requirements and  
procedures applicable to insurers. The proposed amendments will: a) clarify the processes applicable  
to review and determinations and private informal managerial level conferences; b) make technical  
changes to more clearly differentiate between the private informal managerial level conference that  
must precede a review and determination and the review and determination itself; c) provide for a  
remedy to be imposed by the Director to resolve a review and determination based on an incorrect  
premium charge; and d) make other general revisions for consistency and clarity.  
5. List names of newspapers in which the notice of public hearing was published and  
publication dates:  
The Daily Press (Escanaba): September 9, 2020  
Lansing State Journal: September 9, 2020  
Oakland Press: September 9, 2020  
6. Date of publication of rules and notice of public hearing in Michigan Register:  
9/15/2020  
7. Date, time, and location of public hearing:  
9/24/2020 10:30 AM at Virtual via Microsoft Teams pursuant to Executive Order 2020-154 ,  
Telephone Number: 248-509-0316 (Conference ID: 351 136 085#); URL:  
http://bit.ly/EIADraftRulesPublicHearing  
8. Provide the link the agency used to post the regulatory impact statement and cost-benefit  
analysis on its website:  
https://ARS.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=153  
9. List of the name and title of agency representative(s) attending public hearing:  
Renee Campbell, Director, Office of Consumer Services  
Amy Miilu, Manager, Consumer Assistance Section  
Sarah Wohlford, Senior Deputy Director  
Julie Agueros, Administrative Law Specialist  
10. Persons submitting comments of support:  
There were no express comments in support of the rule set; Insurance Alliance of Michigan submitted  
written “thoughts and suggestions.”  
11. Persons submitting comments of opposition:  
There were no express comments in opposition of the rule set; Insurance Alliance of Michigan  
submitted written “thoughts and suggestions,” which included objections to certain specific  
provisions.  
12. Identify any changes made to the proposed rules based on comments received during the  
public comment period:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 3  
Name &  
Comments made at Written  
Agency Rationale Rule number  
Organization public hearing  
Comments  
for change  
& citation  
changed  
1
2
Dyck E. Van  
Koevering -  
Insurance  
Alliance of  
Michigan  
The definition of Definition is  
R 500.1501  
“incorrect  
modified to apply (1)(e)  
premium” is too narrowly to rates  
broad; delete the inconsistent to  
definition.  
those approved by  
DIFS.  
Dyck E. Van  
Koevering -  
Insurance  
All rule language A goal of this rule R 500.1505  
that repeats  
statutory  
filing is to provide (1), (2)  
more consistency  
Alliance of  
Michigan  
language should with applicable  
be deleted or  
modified.  
statutory text;  
minor adjustments  
were made to the  
cited rule.  
3
Dyck E. Van  
Koevering -  
Insurance  
Alliance of  
Michigan  
The rules should DIFS concluded  
No change.  
specify what it  
means for a  
person to  
that the rule  
language was  
adequate to  
“inform” an  
insurer of an  
determine what it  
means to "inform"  
improper denial an insurer.  
or incorrect  
premium.  
4
Dyck E. Van  
Koevering -  
Insurance  
Alliance of  
Michigan  
The rules should The cited rules  
require a person were modified to (1), (2); R  
R 500.1508  
to allege with  
specificity why  
include the phrase 500.1510(1)  
“reason to  
they believe the believe,” which  
insurer  
better reflects  
improperly  
denied insurance  
or charged an  
incorrect  
MCL 500.2113.  
premium.  
5
Dyck E. Van  
Koevering -  
Insurance  
Alliance of  
Michigan  
R 500.1508  
should be  
modified to avoid made based on  
deferring to the language in MCL  
Modification to  
the cited rule was (c)(ii)  
R500.1508(3)  
consumer  
500.2113.  
regarding the  
manner in which  
a conference  
should be held.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 4  
6
7
Dyck E. Van  
Koevering -  
Insurance  
Alliance of  
Michigan  
R 500.1508 fails The cited subrule R 500.1508  
to explain what was added to (4)  
happens if a  
consumer does  
provide a time  
period within  
not respond to the which a consumer  
insurer’s notice of must respond.  
rights.  
Dyck E. Van  
Koevering -  
Insurance  
Alliance of  
Michigan  
R 500.1514(3)  
The cited rule was R 500.1514  
should be deleted modified to refer  
as inconsistent  
with caselaw.  
to the Director’s  
authority to issue  
an appropriate  
remedy.  
13.Date report completed:  
1/19/2021  
MCL 24.242 and 24.245  
;