P&CMIhard
Beyond restricting territorial rating, the Essential Insurance Act (MCL 500.2103+) also requires Michigan personal auto and homeowners insurers to:
ARefuse coverage to any applicant with a prior loss, regardless of type, severity, or time elapsed since the loss occurred
BLimit policies to 6-month terms regardless of the insured's preference
Offer coverage to all 'eligible persons' and refuse only on grounds specifically permitted by the Act
DCharge identical premiums to every applicant statewide
Why this is the answer
The Essential Insurance Act requires Michigan personal auto and homeowners insurers writing in the state to make coverage available to 'eligible persons' — broadly, applicants who meet statutorily defined criteria — and limits underwriting refusals to specific lawful grounds (e.g., poor driving record, unrepaired material property hazards). Mandatory refusals for any prior loss, fixed 6-month terms, and statewide-uniform premiums are not requirements of the Act.
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