Commisioner Ken Ross recently issued Order No. 10-005-M, which requires insurers to file all personal insurance contracts prior to use. Order No. 10-005-M rescinds a 1997 order by former Insurance Commissioner Joe Olson, which exempted many contracts and other documents from filing requirements.

Per a press release recently issued by the MI OFIR:

Legal developments in recent years showed that the review of these forms has become critically necessary for the protection of the public. In particular, a Michigan Supreme Court determination made in 2005 dramatically changed the landscape. In Rory v Continental Ins Co (2005), the court announced that Michigan courts would no longer amend insurance contracts based upon unreasonable clauses. The court said that it was the responsibility of the Commissioner—not courts—to review clauses for legality. Thus, policyholders lost their last line of defense in the court system.

"Our goal is to scrub 'gotcha' clauses out of insurance contracts before they're sold to Michigan consumers," Ross said.

Perr&Knight has already received a number of inquiries regarding product design and forms consulting, state filings and competitive intelligence services for such filings in Michigan, and expects the number of inquiries to increase as insurers move to comply with this order.