Michigan § 500.2016 - Unfair methods of competition and unfair and deceptive acts or practices in business of insurance; applicability of section.

In addition to other provisions of law, the following practices as applied to worker's compensation insurance including worker's compensation coverage provided through a self-insurer's group are defined as unfair methods of competition and unfair and deceptive acts or practices in the business of insurance:

As a condition of receiving a dividend for the current or a previous year, requiring an insured to renew or maintain worker's compensation insurance with the insurer beyond the current policy's expiration date or requiring a member to continue participation with a worker's compensation self-insurer group.

As a condition of obtaining worker's compensation insurance, requiring a premium deposit greater than 25% of the total projected annual premium or $2,500.00, whichever is greater.

As a condition of obtaining worker's compensation insurance, requiring the purchase of any other form of insurance from the same insurer.

As the result of a payroll audit or examination, requiring the payment of an increased premium increment within 30 days of written notification of the increase in premium.

This section does not apply if the insured was guilty of misrepresentation, fraud, or other acts of bad faith.

This section also applies to worker's compensation self-insurers' groups.