Insurance: no-fault; price optimization use in determining insurance rates; prohibit. Amends secs. 2109 & 2119 of 1956 PA 218 (MCL 500.2109 & 500.2119).

Michigan Senate Bill 1013 aims to prohibit the use of price optimization when determining insurance rates for no-fault insurance. Price optimization refers to the practice where insurers adjust rates based on a customer's willingness to pay rather than their risk profile. This bill seeks to ensure that insurance rates are fair and based on actual risk factors.

Supporters of Bill 1013 argue that it will protect consumers from unfair pricing practices by insurance companies. They believe that by banning price optimization, the bill will lead to more equitable insurance rates that reflect true risk rather than the insurer's profit motives.

Critics of Bill 1013 contend that prohibiting price optimization could lead to higher overall insurance rates for consumers. They claim that insurance companies need flexibility in pricing strategies to remain competitive and financially viable, and that this bill could limit their ability to manage risk effectively.