- How is DIFS going to protect the privacy of carrier filings?
Under Chapter 24, filings can remain private until they are effective. Instructions on marking a filing as confidential can be found on page 144 of the SERFF instructions. Companies will be required to make the filing confidential. DIFS will remove the privacy setting on or after July 2, 2020.
- What filing type should we use to submit these filings?
Forms will be filed under a new filings type of PA-21/22 – Forms. Rates and rules will be filed under a new filing type of PA-21/22 – Rate and Rule. Filings that will include Rates, Rules AND Forms will be filed under PA-21/22 – Rates, Rules and Forms
- When can companies begin submitting filings?
Companies may now submit filings for compliance with PA 21 and 22 effective July 2, 2020 using the “PA 21/22 – Rates, Rules, and Forms” filing type. The approved Bodily Injury Selection Form has been issued by the Director and can be found in Bulletin 2020-03-INS. On November 13, 2019 the MCCA announced a per vehicle assessment of $100 for the period July 2, 2020 through June 30, 2021. Detailed information on the assessment, including changes in the assessments charged to commercial entities, can be found in the MCCA’s annual Assessment Bulletin. Further questions regarding the applicability of the assessment should be directed to the MCCA.
These filings must contain ALL forms, rules, and rates to be revised for the underwriting company in one filing and be effective 7/2/2020. Even if approved, companies may not begin using the updated forms, rules, and rates on new and renewal business prior to 7/2/2020. Any company found using the new forms, rules, and rates on business prior to 7/2/2020 will be subject to administrative action.
- What is the last day that companies can file to comply with statute?
MCL 500.2108(6) was amended to require companies to submit automobile filings no less than 90 days prior to the effective date. Therefore, companies must submit filings demonstrating compliance with PA 21 and PA 22 no later than April 1, 2020. However, we encourage companies to make filings prior to this date to allow for time to resolve any issues found during our review.
- Can companies file all underwriting companies under one filing in SERFF?
Separate filings must be submitted for each underwriting company.
What needs to be submitted with the form filing?
Companies must submit a filing memorandum. MARKED AND FINAL FORMS must be submitted on the Form Schedule tab in SERFF and list the readability score. Note: Michigan requires a readability score of no less than 45. See MCL 500.2236 for details.
- Do companies need to file the BI selection form since the Director prescribed the form?
Yes. Companies must file the BI selection form with DIFS with their form number.
- Do companies need to file the PIP Selection/Rejection form if they use the one provided by the Director?
Yes. Companies must file the PIP selection form with DIFS with their form number and any other changes they make. Any deviations from or changes made to this form will be subject to prior approval.
- My company issues exempt commercial auto policies. Do we have to submit a filing?
Companies that issue exempt commercial auto policies in accordance with MCL 500.2236(8)(e)(ii) and MCL 500.2401(2)(d)(ii), are not required under the exemption to file forms, rates and rules to demonstrate compliance with the changes in PA 21 and PA 22. However, DIFS will require companies issuing exempt commercial auto policies to submit a filing pursuant to Section 438(3) of the Insurance Code of 1956, MCL 500.438(3). The filing must include a copy of the disclaimer required under MCL 500.2236(8)(e)(ii) and MCL 500.2401(2)(d)(ii) and the following attestations:
“I attest that the company will make the necessary changes to rates, rules and forms to comply with Michigan Public Act 21 and Public Act 22 of 2019. I understand that the filing exemption does not exempt the company from complying with the requirements of the acts but only exempts the company from filing rates, rules and forms to demonstrate compliance with the acts. I understand that if the company fails to comply with the requirements of the acts, the company will be subject to administrative action.”Such filings must be submitted under the new filing type of “PA-21/22 – Commercial Exemption”.
“I attest that the company will display the disclaimer provided with this filing in a predominant location on each exempt policy issued.”
"I attest that in determining compliance with the changes in Public Acts 21 & 22, the company has reviewed the PA 21/22 – Rate, Rule and Form filing requirements for Commercial Auto business available in SERFF and is taking measures to comply with these requirements."
The following question was posted on 12/12/19.
- Can companies file forms separate from rates and rules?
Companies must file forms, rates and rules together in one filing per underwriting company.
The following question was posted on 01/08/20.
- Do companies that write motorcycle policies need to file changes as a result of Public Acts 21 and 22?
Yes. SERFF has been updated with detailed filing requirements specific to motorcycle polices. This may be found by searching filing requirements for TOI 19.0 Personal Auto & Sub TOI 19.0002 Motorcycle.