KNOW YOUR RIGHTS!
Don’t let your insurance company bully you into giving up your dog!

In September 2003, the Michigan Office of Financial and Insurance Services (OFIS) released Bulletin 2003-07-INS, which states that insurance companies who exclude liability coverage due to ownership of a particular breed of dog, are in violation of Michigan’s Essential Insurance Act.

In the state of Michigan, insurance companies cannot deny you home insurance, exclude coverage, or cancel existing policies based solely on possession of a specific dog breed.

Unfortunately, the law does NOT prevent insurance companies from raising rates based on breed. The Michigan Office of Insurance and Financial Services (OFIS) has seen surcharges of up to 300% added to homeowner’s policies based on the breed of dog they have. If the surcharges are documented in their underwriting guidelines, they are allowed to do this.

However, according to the OFIS, insurance rates are typically increased by year NOT by quarter. In order for your insurance company to raise your rates on a quarterly basis, or on a monthly basis, it MUST be stated in your insurance company’s underwriting guidelines.

Important Note: “An insurer may nonrenew a policy or deny coverage if the dog on the premises has bitten a person or attacked another animal and has caused a liability claim to be paid under the policy. The coverage should not be conditioned on the breed of dog present, but only its bite history related to paid claims and after written notice to the policyholder. However, this rule also can be used only if it is filed with the Office of Financial and Insurance Services.”

In the State of Michigan, if an insurance company denies you coverage, refuses to renew your policy, or threatens to cancel your policy based solely on the breed of dog you own, they are breaking the law!

Here’s the proof!

Michigan IDC BulletinSeptember 22, 2003 No. 03-366Topic: Dog Breed ExclusionsLines Affected: Homeowners Effective Date: September 4, 2003 NAII Staff Contact: Laura Kotelman, Counsel 847-297-7800, ext. 395 laura.kotelman@naii.org Executive Summary The Michigan Office of Insurance and Financial Services has issued Bulletin 2003-07-INS regarding specific breed of dog exclusions. Additional Discussion The Office of Financial and Insurance Services (OFIS) has issued Bulletin 2003-07-INS upon learning that some companies deny home insurance, exclude coverage, or cancel policies based on possession of a specific dog breed. Some home insurance companies have added directly into the policy language exclusions of liability coverage if the insured owns a particular breed of dog. The Commissioner would consider such an action in violation of the Essential Insurance Act since the insurer would be denying coverage to an eligible person based on an unfiled underwriting standard. MCL 500.2103(2) of the Essential Insurance Act defines an eligible person for home insurance, as well as an eligible dwelling. The Commissioner takes the position these eligibility rules function as underwriting rules required to be filed under MCL 500.2119. She asserts that this section does not allow denying, canceling, or nonrenewing coverage based on the insured’s possession of a particular breed of dog. Home insurers may nonrenew a policy based on the claim history of the insured. The Commissioner interprets this section to mean an insurer may nonrenew a policy or deny coverage if the dog on the premises has bitten a person or attacked another animal and has caused a liability claim to be paid under the policy. The coverage should not be conditioned on the breed of dog present, but only its bite history related to paid claims and after written notice to the policyholder. This rule also can be used only if it is filed with the Office of Financial and Insurance Services. Any questions regarding this bulletin should be addressed to the Office of Financial and Insurance Services, 611 W. Ottawa Street, P.O. Box 30220, Lansing, MI 48909-7720. Toll Free: (877) 999-6442.

View the entire text of the “Specific Breed of Dog Exclusions” bulletin on the Michigan OFIS website at this link: http://www.michigan.gov/cis/0,1607,7-154-10555_12900_13376-86214–,00.html

My insurance company says…

• “They’ll keep raising my premiums until I get rid of my dog”
• “They won’t renew my policy because my dog is a: Rottweiler, Pit Bull or Doberman, etc.”

WHAT CAN I DO?

• File a complaint against the insurance company with OFIS. Links are included on the back of this brochure, to the OFIS complaint forms. You can fax, snail mail, or e-mail the completed complaint form in. The process can take up to eight weeks total.
• Once the OFIS receives the complaint, they conduct an inquiry with the insurance company into their underwriting guidelines, the insurance company then has 21 days to respond to that inquiry.
• If you would like to discuss your insurance issues directly with the Michigan OFIS, you can contact them here: Office of Financial and Insurance Services
  611 W. Ottawa Street
  P.O. Box 30220
  Lansing, MI 48909-7720
  Toll Free Phone Number: (877) 999-6442
  

We must discourage these insurance companies from bullying policy holders into giving up their dogs. Every person’s actions count!

IMPORTANT LINKS:

Michigan OFIS Bulletin No. 2003-07-INS Specific Breed of Dog Exclusions:
http://www.michigan.gov/cis/0,1607,7-154-10555_12900_13376-86214–,00.html

Michigan Office of Financial and Insurance Services Website:

http://www.michigan.gov/cis/0,1607,7-154-10555—,00.html

Michigan Insurance Complaint Forms Procedure:
www.michigan.gov/cis/0,1607,7-154-10555_12902_12907—,00.html

Michigan Insurance Complaint Forms Downloadable form to file a complaint:
www.michigan.gov/documents/cis_ofis_e_form_25076_7.pdf

Michigan Essential Insurance Act – AKC Article:
www.akc.org/news/index.cfm?article_id=1856

Michigan Essential Insurance Act ruling – download:
www.akc.org/pdfs/MI_Insurance_ruling_0309.pdf

Copyright © 2007 Diana McKay and WonderBull.com . All rights reserved.
This article may not be published, broadcast, rewritten, or redistributed.

One Response to “Michigan Dog Owners Insurance Rights”

1. LydiaZ36 says:

   February 14, 2008 at 3:21 pm

   That is wonderful. I wish we had similar protection in Texas. I was turned down 3 times for homeowners before I just fudged about my babies.

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