THE INSURANCE CODE OF 1956
Act 218 of 1956
500.2027 Unfair methods of competition and unfair or deceptive acts or practices; prohibited conduct.
Sec. 2027.
Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance include:
(a) Refusing to insure, refusing to continue to insure, or limiting the amount of coverage available to an individual or risk because of any of the following:
(i) Race, color, creed, marital status, sex, national origin, gender, gender identity or expression, or sexual orientation, except that marital status may be used to classify individuals or risks for the purpose of insuring family units.
(ii) The residence, age, disability, or lawful occupation of the individual or the location of the risk, unless there is a reasonable relationship between the residence, age, disability, or lawful occupation of the individual or the location of the risk and the extent of the risk or the coverage issued or to be issued, but subject to subparagraph (iii). This section does not prohibit an insurer from specializing in or limiting its transactions of insurance to certain occupational groups, types, or risks as approved by the director. The director shall approve the specialization for an insurer licensed to do business in this state and whose articles of incorporation contained a provision on July 1, 1976, requiring that specialization.
(iii) For property insurance, the location of the risk, unless there is a statistically significant relationship between the location of the risk and a risk of loss due to fire within the area in which the insured property is located. As used in this subparagraph, "area" means a single zip code number under the zoning improvement plan of the United States Postal Service.
(b) Refusing to insure or refusing to continue to insure an individual or risk solely because the insured or applicant was previously denied insurance coverage by an insurer.
(c) Charging a different rate for the same coverage based on race, color, creed, marital status, sex, national origin, gender, gender identity or expression, sexual orientation, age, residence, location of risk, disability, or lawful occupation of the risk unless the rate differential is based on sound actuarial principles and a reasonable classification system, and is related to the actual and credible loss statistics or, for new coverages, reasonably anticipated experience. This subdivision does not apply if the rate has previously been approved by the director.
History: Add. 1976, Act 273, Eff. Apr. 1, 1977 ;-- Am. 1998, Act 26, Imd. Eff. Mar. 12, 1998 ;-- Am. 2023, Act 156, Eff. Feb. 13, 2024
PopularName Notes:
Act 218
Notes of Decisions
Shavers v. Attorney Gen., 267 N.W.2d 72 (Mich. 1978).
· cites it 6× “See, also, MCL 500.2027; MSA 24.12027. Manuals pertaining to classifications, rules and rates, rate plans and every modification of any of the foregoing must be filed with the Commissioner of Insurance.”
Am. Cmty. Mut. Ins. v. Comm'r of Ins., 491 N.W.2d 597 (Mich. Ct. App. 1992).
· cites it 7× “Petitioner’s proposed insurance form was rejected by the Insurance Bureau’s staff because it represented an unfair trade practice in violation of MCL 500.2027; MSA 24.12027. That statute provides in pertinent part as follows: Unfair methods of competition and unfair or deceptive…”
Kassab v. Michigan Basic Prop. Ins., 491 N.W.2d 545 (Mich. 1992).
· cites it 4× “MCL 500.2027(a)(i); MSA 24.12027(a)(i). [5] Moreover, 2026 specifically addresses inappropriate procedures in the servicing of insurance contracts.”
Detroit Auto. Inter-Ins. Exch. v. Comm'r of Ins., 326 N.W.2d 444 (Mich. Ct. App. 1982).
· cites it 2× “MCL 500.2027; MSA 24.12027 states in part: "Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance include: "(a) Refusing to insure * * * or limiting the amount of coverage available to an individual or risk because of any of the…”
Frankenmuth Mut. Ins. v. Keeley, 447 N.W.2d 691 (Mich. 1989).
· cites it 2× “12026 is designed to give the Commissioner of Insurance authority over certain continuing practices of insurance companies.”
Williams v. Nat'l Cas. Co., 132 S.W.3d 244 (Mo. 2004).
· cites it 2× “§ 40-1-31 (1977/1986)), Michigan ( Mich. Comp. Laws § 500.2027 (1977)), Minnesota (Minn.”
Mich Life Ins Co v. Ins Comm'r, 328 N.W.2d 82 (Mich. Ct. App. 1982).
· cites it 2× “On September 22, 1978, the Insurance Bureau staff issued a notice of hearing, alleging that Michigan Life had engaged in an unfair trade practice, contrary to § 2027 of the Michigan Insurance Code, MCL 500.2027; MSA 24.12027, by refusing to offer mortgage disability insurance to…”
Young v. Michigan Mut. Ins., 362 N.W.2d 844 (Mich. Ct. App. 1984).
“12026; MCL 500.2027; MSA 24.12027. There can be no independent cause of action in a particular insurance client since an insurance client’s dealings with an insurance company are of necessity an isolated incident.”
Am. Way Serv. Corp. v. Comm'r of Ins., 317 N.W.2d 870 (Mich. Ct. App. 1982).
“12009, and MCL 500.2027; MSA 24.12027. The Insurance Bureau ordered them to pay a penalty of $15,000 for their violation of § 2009 and a penalty of $25,000 for their violation of § 2027.”
Allstate Ins. v. Dep't of Ins., 491 N.W.2d 616 (Mich. Ct. App. 1992).
“The circuit court’s order also reversed that part of the commissioner’s final decision and order that found Allstate’s rating plan to be in violation of MCL 500.2027; MSA 24.12027. The effect of the circuit court’s holding was to, prohibit the respondents from either imposing…”
Safie Enter., Inc. v. Nationwide Mut. Fire Ins., 381 N.W.2d 747 (Mich. Ct. App. 1985).
“In the instant case, the trial court determined that plaintiffs’ claim of discrimination was not actionable under MCL 500.2027; MSA 24.12027 which states: "Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance include: "(a) Refusing…”
Michigan Life Ins. v. Comm'r of Ins., 328 N.W.2d 82 (Mich. Ct. App. 1982).
· cites it 2× “On September 22, 1978, the Insurance Bureau staff issued a notice of hearing, alleging that Michigan Life had engaged in an unfair trade practice, contrary to § 2027 of the Michigan Insurance Code, MCL 500.2027; MSA 24.12027, by refusing to offer mortgage disability insurance to…”
— Mich. Comp. Laws § 500.2027(a)(i) — 1 case
Kassab v. Michigan Basic Prop. Ins., 491 N.W.2d 545 (Mich. 1992).
“MCL 500.2027(a)(i); MSA 24.12027(a)(i). [5] Moreover, 2026 specifically addresses inappropriate procedures in the servicing of insurance contracts.”
— Mich. Comp. Laws § 500.2027(a)(ii) — 1 case
Detroit Auto. Inter-Ins. Exch. v. Comm'r of Ins., 326 N.W.2d 444 (Mich. Ct. App. 1982).
“MCL 500.2027; MSA 24.12027 states in part: "Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance include: "(a) Refusing to insure * * * or limiting the amount of coverage available to an individual or risk because of any of the…”
— Mich. Comp. Laws § 500.2027(b) — 1 case
Am. Cmty. Mut. Ins. v. Comm'r of Ins., 491 N.W.2d 597 (Mich. Ct. App. 1992).
“Petitioner’s proposed insurance form was rejected by the Insurance Bureau’s staff because it represented an unfair trade practice in violation of MCL 500.2027; MSA 24.12027. That statute provides in pertinent part as follows: Unfair methods of competition and unfair or deceptive…”
— Mich. Comp. Laws § 500.2027(c) — 1 case
Kassab v. Michigan Basic Prop. Ins., 491 N.W.2d 545 (Mich. 1992).
“MCL 500.2027(a)(i); MSA 24.12027(a)(i). [5] Moreover, 2026 specifically addresses inappropriate procedures in the servicing of insurance contracts.”
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