January 14, 2004

During 2003, Michigan citizens experienced increases in home and auto insurance rates and many had concerns about the use of credit scoring. As part of Get Smart About Insurance Week (January 19 - 23, 2004), the Michigan Office of Financial and Insurance Services (OFIS) wants Michigan consumers to know that information about these insurance issues, and more, is available on the OFIS web site, located at: www.michigan.gov/ofis or by calling OFIS toll-free at 877-999-6442.

"Surveys have recently shown that, while 72 percent of Americans feel they have about the right amount of insurance, only 33 percent say they understand the details of the coverage very well," said OFIS Commissioner Linda A. Watters. "Michigan consumers need to know that OFIS can help them understand their insurance and provide information on important insurance issues."

For example, some of the questions OFIS can assist consumers with include:

• My home insurance rates increased. Why did that happen and what can I do? OFIS has information to help consumers understand the rates and, most important, an insurance guide that allows rate comparisons among insurance companies. The home insurance information, along with several other helpful insurance guides, is available on line at: www.michigan.gov/ofis - click on the homeowner's insurance icon on the OFIS home page.
  
• What is MCCA and why do I have to pay it? MCCA is the Michigan Catastrophic Claims Association and it pays for unlimited medical coverage in the event of a catastrophic auto accident. State law mandates that all auto insurance policies include a charge for MCCA. Information on the MCCA, including a 26-year history of the MCCA assessment, can also be found at: www.michigan.gov/ofis - select 'Publications,' then 'Guides.'
  
• Why does my insurance company want to look at my credit history? In December 2002, OFIS completed a study that looked into the use of credit to set insurance rates. While the study found that using credit history to set insurance rates is legal, additional consumer protections are needed. The results of the credit study and the needed consumer protection measures are available directly at: www.michigan.gov/cis/0,1607,7-154-10555_12902_15784---,00.html.
  
• I want to find more information about Michigan insurance companies, agencies and agents. Where can I find it? The OFIS web site offers searchable databases that contain contact information on insurance companies, agencies and agents to assure Michigan consumers that they are working with a licensed company, agency or agent. The searchable database for agents is located at: www.cis.state.mi.us/fis/ind_srch/ins_agnt/insurance_agent_criteria.asp. The database for agencies is located at: www.cis.state.mi.us/fis/ind_srch/ins_agcy/insurance_agency_criteria.asp, and the to search for companies visit: www.cis.state.mi.us/fis/ind_srch/ins_comp/insurance_company_criteria.asp. Consumers can also look up complaint ratios for insurance companies at: www.michigan.gov/cis/0,1607,7-154-10555_12902_12916---,00.html.
  
  
• What is long term care insurance? OFIS offers 'A Shopper's Guide to Long Term Care Insurance,' which explains long term care insurance and provides worksheets to use while shopping for coverage. Access the guide directly at: www.michigan.gov/documents/cis_ofis_ltcshop_23739_7.pdf. The Michigan government web site also has a long term care portal at www.michigan.gov/ltc.
  
  
• I have a problem with my insurance and I want some help. What can I do? If consumers cannot resolve their issues by contacting their insurance company and agent, they can contact OFIS for assistance. Call toll-free at 877-999-6442 to speak with an OFIS staff person who then can provide a complaint form, which can be either mailed or faxed to the consumer, and is also available on line directly at: www.michigan.gov/documents/cis_ofis_comp_all_25074_7.pdf.

OFIS has additional information on insurance issues, including upcoming changes in coverage denials and cancellations. All OFIS information is available online at www.michigan.gov/ofis or by contacting OFIS toll-free at 877-999-6442.