MBPIA Information

Michigan Basic's purpose is to provide fair access to property insurance at standard rates regardless of property location. It is the agent's responsibility to seek the best possible property coverage for each insured in the voluntary market before attempting to acquire coverage through Michigan Basic. Providing the insured property coverage choices will reduce the likelihood of costly litigation for both Michigan Basic and the agent. FAIR PLAN HISTORY Michigan Basic Property Insurance Association was established on October 29,1968, along with 27 other state FAIR Plans (Fair Access to Insurance Requirements). The FAIR Plans were a result of the Federal Omnibus Housing Bill, passed on August 1, 1968. The Omnibus Bill passed by the Federal Government provided for riot reinsurance if insurance companies would join together in statewide pools to offer basic property insurance to those who were ineligible in the voluntary market. The Bill gave the responsibility of the formation of FAIR Plans and their operations to the individual states.