Bill Text: MI HB4596 | 2011-2012 | 96th Legislature | Chaptered

Michigan House Bill 4596 (Prior Session Legislation)

Bill Title: Insurance; essential; use of credit information and credit scoring; regulate. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2157. TIE BAR WITH: HB 4593'11, HB 4594'11, HB 4595'11, SB 0300'11

Spectrum: Slight Partisan Bill (Democrat 24-9)

Status: (Passed) 2012-07-18 - Assigned Pa 208'12 [HB4596 Detail]

Download: Michigan-2011-HB4596-Chaptered.html

Act No. 208

Public Acts of 2012

Approved by the Governor

June 26, 2012

Filed with the Secretary of State

June 27, 2012

EFFECTIVE DATE: 91st day after final adjournment of 2012 Regular Session

STATE OF MICHIGAN

96TH LEGISLATURE

REGULAR SESSION OF 2012

Introduced by Reps. Howze, Opsommer, Glardon, Liss, Stallworth, Talabi, Kandrevas, Townsend, Irwin, Ouimet, Melton, Cavanagh, Brunner, Stapleton, Ananich, Geiss, Hobbs, Darany, Roy Schmidt, Olumba, Durhal, Stanley, Wayne Schmidt, Hooker, LeBlanc, MacMaster, Jackson, Smiley, Yonker, Scott, Potvin and Segal

ENROLLED HOUSE BILL No. 4596

AN ACT to amend 1956 PA 218, entitled “An act to revise, consolidate, and classify the laws relating to the insurance and surety business; to regulate the incorporation or formation of domestic insurance and surety companies and associations and the admission of foreign and alien companies and associations; to provide their rights, powers, and immunities and to prescribe the conditions on which companies and associations organized, existing, or authorized under this act may exercise their powers; to provide the rights, powers, and immunities and to prescribe the conditions on which other persons, firms, corporations, associations, risk retention groups, and purchasing groups engaged in an insurance or surety business may exercise their powers; to provide for the imposition of a privilege fee on domestic insurance companies and associations and the state accident fund; to provide for the imposition of a tax on the business of foreign and alien companies and associations; to provide for the imposition of a tax on risk retention groups and purchasing groups; to provide for the imposition of a tax on the business of surplus line agents; to provide for the imposition of regulatory fees on certain insurers; to provide for assessment fees on certain health maintenance organizations; to modify tort liability arising out of certain accidents; to provide for limited actions with respect to that modified tort liability and to prescribe certain procedures for maintaining those actions; to require security for losses arising out of certain accidents; to provide for the continued availability and affordability of automobile insurance and homeowners insurance in this state and to facilitate the purchase of that insurance by all residents of this state at fair and reasonable rates; to provide for certain reporting with respect to insurance and with respect to certain claims against uninsured or self-insured persons; to prescribe duties for certain state departments and officers with respect to that reporting; to provide for certain assessments; to establish and continue certain state insurance funds; to modify and clarify the status, rights, powers, duties, and operations of the nonprofit malpractice insurance fund; to provide for the departmental supervision and regulation of the insurance and surety business within this state; to provide for regulation over worker’s compensation self-insurers; to provide for the conservation, rehabilitation, or liquidation of unsound or insolvent insurers; to provide for the protection of policyholders, claimants, and creditors of unsound or insolvent insurers; to provide for associations of insurers to protect policyholders and claimants in the event of insurer insolvencies; to prescribe educational requirements for insurance agents and solicitors; to provide for the regulation of multiple employer welfare arrangements; to create an automobile theft prevention authority to reduce the number of automobile thefts in this state; to prescribe the powers and duties of the automobile theft prevention authority; to provide certain powers and duties upon certain officials, departments, and authorities of this state; to provide for an appropriation; to repeal acts and parts of acts; and to provide penalties for the violation of this act,” (MCL 500.100 to 500.8302) by adding section 2157.

The People of the State of Michigan enact:

Sec. 2157. If it is determined through the dispute resolution process set forth in 15 USC 1681i(a) that the credit information of a current insured was incorrect or incomplete and if the insurer receives notice of this determination from either the consumer reporting agency or from the insured, the insurer shall reevaluate the insured within 30 days of receiving the notice. After reevaluating the insured, the insurer shall make any adjustments necessary, consistent with this act and the insurer’s underwriting, rating guidelines, and premium discount plan. If an insurer determines that the insured has overpaid premium, the insurer shall refund to the insured the amount of overpayment calculated back to the shorter of either the last 12 months of coverage or the actual policy period.

Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 96th Legislature are enacted into law:

(a) Senate Bill No. 300.

(b) House Bill No. 4593.

(d) House Bill No. 4595.

Clerk of the House of Representatives

Secretary of the Senate

Approved

Governor