Bill Text: MI HB4423 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Insurance; no-fault; explanation of Michigan catastrophic claims association assessment; require in certain cases. Amends sec. 2112 of 1956 PA 218 (MCL 500.2112).
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2009-02-25 - Printed Bill Filed 02/25/2009 [HB4423 Detail]
Download: Michigan-2009-HB4423-Introduced.html
HOUSE BILL No. 4423
February 24, 2009, Introduced by Reps. Bauer, Switalski, Durhal and Liss and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2112 (MCL 500.2112), as amended by 1980 PA 461.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2112. (1) At least annually, in conjunction with a
renewal notice, a bill, or other notice of payment due issued to a
policyholder in conjunction with automobile and home insurance
contracts, an insurer shall send to each policyholder a written
notice of all of the following:
(a) A description of the specific rating classifications by
which the rates and premiums for the policy have been determined.
The notice shall be of sufficient detail and clarity so that the
policyholder can reasonably verify the applicability and accuracy
of the rating classifications.
(b) A general explanation of the extent to which rates or
premiums vary among insureds on the basis of the rating
classifications used by the insurer.
(c) Sources and reasonable procedures by which the individual
can obtain from the insurer additional information sufficient for
the individual to calculate and confirm the accuracy of his or her
specific premium.
(d) Relevant information regarding the rights of an insured,
under sections 2113 and 2114, to appeal the application of the
insurer's rating plan in determining his or her premium, to obtain
documentation from the insurer regarding the determination of the
rate, to appeal the application of the insurer's underwriting rules
to the person, to request an informal conference with the insurer,
and to file with the commissioner a complaint as an aggrieved
person.
(e) A description of all of the insurer's underwriting rules
based upon insurance eligibility points and a description of all of
the underwriting rules of the insurer's affiliates based upon
insurance eligibility points.
(f) A suggestion that the insured contact his or her agent to
determine if he or she is eligible for insurance from an affiliate
of the insurer or under a different rating plan of the insurer
which would provide to the insured insurance at a more favorable
premium.
(2) An automobile insurer shall not list on a policy
declaration page or any other notice provided to a policyholder the
policyholder's portion of an assessment levied against the insurer
under section 3104, unless prior approval is given by the
commissioner and all of the following are met:
(a) The assessment is listed as a separate and distinct item
entitled "Michigan catastrophic claims association assessment".
(b) The assessment amount listed reflects the actual per
vehicle amount the insurer was assessed by the Michigan
catastrophic claims association for the corresponding policy period
and does not include any additional expenses. If listed, any
additional expense related to the collection of the Michigan
catastrophic claims association assessment, including, but not
limited to, agent commissions and administrative expenses, shall
not be included with the Michigan catastrophic claims association
assessment listing, shall be identified separately as the type of
expense it is, with the corresponding amount for each expense
listed separately, and shall be identified as being related to the
Michigan catastrophic claims association assessment.
