Legislators Demand Answers on Rate Relief for Michiganders
LANSING — Last December, the federal government passed sweeping changes to the country’s tax system that benefitted companies and industries in every sector, reducing the corporate tax rate by up to 35 percent. A bipartisan group of legislators led by state Rep. Donna Lasinski (D-Scio Township) sent a letter today to the director of Michigan’s Department of Insurance and Financial Services to learn how the savings provided by the federal tax changes are being passed on to policyholders in the state as required in the rate filing calculations.
“Auto and home insurance are major sources of financial strain for many Michigan families,” said Rep. Lasinski, Democratic member of the House Insurance Committee. “Michiganders deserve to know how their insurance rates are set and that the tax cut they are paying for is resulting in much-needed rate relief. Elected officials on both sides of the aisle understand the sense of urgency and we are ready to roll up our sleeves to ensure the people of Michigan are receiving this critical benefit.”
In January 2018, the Consumer Federation of America sent DIFS and the nation’s insurance commissioners a notice concerning the implications of last year’s federal tax reform. It also requested the department share the actions it was taking to require insurers to reduce rates for policyholders. The department has not responded to the Consumer Federation of America’s request.
Joining Rep. Lasinski in signing onto the letter are state Reps. Sherry Gay-Dagnogo (D-Detroit), Phil Phelps (D-Flushing), Robert Wittenberg (D-Huntington Woods), Tim Greimel (D-Auburn Hills), Abdullah Hammoud (D-Dearborn), Martin Howrylak (R-Troy), Jeff Yaroch (R-Armada), and Michael Webber (R-Rochester). A copy of the letter sent to the Department of Insurance and Financial Services is attached.