Bill Text: MI SB0011 | 2019-2020 | 100th Legislature | Introduced


Bill Title: Insurance; no-fault; catastrophic claims association; provide for rebate of excess fees. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3104a.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2019-01-15 - Referred To Committee On Insurance And Banking [SB0011 Detail]

Download: Michigan-2019-SB0011-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 11

 

 

January 15, 2019, Introduced by Senator WOJNO and referred to the Committee on Insurance and Banking.

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

(MCL 500.100 to 500.8302) by adding section 3104a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3104a. (1) By June 1, 2019, the catastrophic claims

 

association created under section 3104 shall return not less than

 

$1,200,000,000.00 of excess premium collected to its members in

 

proportion to the premiums paid by each member.

 

     (2) An association member shall rebate to its insureds under

 

policies that provide the security required under section 3101(1)

 

or 3103(1), or both, on a pro rata basis the money received under

 

subsection (1).

 

     (3) For the premium periods of July 1, 2019 to June 30, 2021,

 


the catastrophic claims association shall not assess its members a

 

premium based on an average premium per car of more than $6.00.

 

     (4) For a group self-insurance pool providing motor vehicle

 

security under section 9 of 1951 PA 35, MCL 124.9, the catastrophic

 

claims association shall directly refund the pro rata share of the

 

amount refunded under subsection (1).

 

     (5) As used in this section, "excess premium" means premiums

 

paid by catastrophic claims association members in excess of actual

 

and anticipated covered claims and expenses of the catastrophic

 

claims association.

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