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OFIR Announces Auto Insurance Companies Pledging to Freeze Rate Increases
FOR IMMEDIATE RELEASE
March 2, 2009
Contact: Jason Moon 517-335-1700
LANSING - The Office of Financial and Insurance Regulation (OFIR) today announced that 12 Michigan automobile insurance companies have pledged to freeze auto insurance rates. Executive Directive No. 2009 - 1, issued by Governor Jennifer M. Granholm on February 3, 2009, asked each automobile insurance company doing business in Michigan to pledge to freeze automobile insurance rates for a 12-month period, while the Michigan Legislature works to enact comprehensive automobile insurance reform.
"Auto insurance has simply become unaffordable to many of the state's citizens and I commend these companies for pledging to freeze their rates while the legislature works on comprehensive auto insurance reform," OFIR Commissioner Ken Ross said. "Insurance companies that have not signed up for the pledge can continue to notify our agency that they will refrain from raising their rates for one year."
For a list of the companies pledging to freeze rates for a 12-month period and for a list of companies that have yet to sign up for the pledge, visit: http://www.michigan.gov/documents/dleg/EO_2009-1_Compliance_020609_266362_7.pdf
According to the Executive Directive, if an automobile insurance company fails to pledge to freeze rates for year, OFIR "shall utilize every administrative tool at the Office's disposal to assure that the automobile insurance company provides automobile insurance at fair and equitable rates in this state, including, but not limited to disapproval of rate increases or rejection of rate filings submitted by the automobile insurance company until the proposed rate has been thoroughly and carefully evaluated and the company has clearly demonstrated that the proposed rate meets all applicable statutory and constitutional requirements."
To read the entire Executive Directive, visit: http://www.michigan.gov/gov/0,1607,7-168-36898-208124--,00.html