Home Insurance – Adjustment in Value Based On Consumer Price Index __________________________

STATE OF MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES Bulletin 2024-02-INS In the matter of: Home Insurance – Adjustment in Value Based On Consumer Price Index __________________________/ Issued and entered this 27th day of March 2024 by Anita G. Fox Director This bulletin supersedes Bulletin 2018-17-INS, issued July 2, 2018. Under Section 2117(2) of the Insurance Code, MCL 500.2117(2), the underwriting rules that an insurer may establish for home insurance may be based only on specific standards. Among these is the dollar amount of the three-year claim history to be used for nonrenewal of a home insurance policy, pursuant to Section 2117(2)(e), MCL 500.2117(2)(e). Pursuant to Section 2117(5), the Director of the Department of Insurance and Financial Services is required to adjust the minimum dollar amounts of aggregated home insurance claims every sixth year to reflect the aggregate annual average percentage change since the last adjustment in the consumer price index (CPI)1 rounded to the nearest hundred dollars. The Director has performed this adjustment based on the CPI multiplier for the six years from December 31, 2017, through December 31, 2023. As of January 1, 2024, the new minimum dollar amount under MCL 500.2117 for three paid claims within the immediately preceding three years totaling $4,000 or more, exclusive of weather-related claims, is $5,000. As of January 1, 2024, the new minimum dollar amount under MCL 500.2117 for three paid claims within the immediately preceding three-years totaling $5,300 or more, including weather-related claims, is $6,600. Any questions regarding this Bulletin should be directed to: Department of Insurance and Financial Services Office of General Counsel 530 W. Allegan Street – 8th Floor P.O. Box 30220 Lansing, Michigan 48909-7720 Toll Free: (877) 999-6442 /s/ ____________________________ Anita G. Fox Director 1 Under Section 2117(5), “CPI” means the CPI for all urban consumers in the U.S. city average, as most recently reported by the U.S. Department of Labor.