P&CMImedium
Under MCL 500.2436-500.2458, may a Michigan-licensed P&C insurer use loss-cost or reference filings prepared by advisory organizations such as ISO or AAIS?
Yes, but the insurer must adopt its own loss-cost multiplier and file its final rates
BNo, advisory organization filings are prohibited in Michigan
COnly if the Governor specifically authorizes the use of the advisory filing
DYes, and the advisory filing is automatically the insurer's rate without any further filing
Why this is the answer
MCL 500.2436-500.2458 authorizes advisory organizations (ISO, AAIS, NCCI for WC) to file prospective loss costs and other reference materials with DIFS. Individual insurers may reference these filings but must adopt their own loss-cost multiplier and file the resulting final rates with DIFS before use. Advisory filings do not automatically become an insurer's rate, and they are not prohibited.
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