Michigan ballot initiative would lower home, auto, business insurance premiums by 20 percent

Los Angeles Times: Michigan voters could decide whether to reduce automobile, home and business insurance premiums by 20 percent if a proposal qualifies for the 2010 statewide ballot.

The form of a legislative initiative submitted by a group called Fair Affordable Insurance Rates was approved Monday by the Board of State Canvassers. Supporters still must collect more than 304,000 valid voter signatures and clear other procedural hurdles to put the measure on next November's ballot.

"This initiative will lower the cost of insurance for everyone in the state," said Kim Bowman, chief of staff to state Sen. Hansen Clarke, D-Detroit, who is backing the proposal. "Those who aren't insured can afford insurance and those who are paying too much can experience savings." The insurance industry said the "unrealistic" ballot measure, if approved, would kill jobs because insurers will not do business if they cannot price their policies appropriately.

"A 20 percent rate reduction puts us at risk with regard to solvency," said Pete Kuhnmuench, executive director of the Insurance Institute of Michigan. "How does any business operate with 20 percent less in income when it can't affect the expense side? We still have the obligation to pay those claims."

To read more, click here.

Comments

There are no comments for this entry.


Please enter the word you see in the image below:


More News