Bill Text: MI SB0738 | 2013-2014 | 97th Legislature | Chaptered
Bill Title: Insurance; no-fault; requirement to provide policy information to department of community health; revise sunset. Amends sec. 3101a of 1956 PA 218 (MCL 500.3101a).
Spectrum: Partisan Bill (Republican 8-0)
Status: (Passed) 2014-12-31 - Assigned Pa 0419'14 With Immediate Effect [SB0738 Detail]
Download: Michigan-2013-SB0738-Chaptered.html
Act No. 419
Public Acts of 2014
Approved by the Governor
December 27, 2014
Filed with the Secretary of State
December 30, 2014
EFFECTIVE DATE: December 30, 2014
STATE OF MICHIGAN
97TH LEGISLATURE
REGULAR SESSION OF 2014
Introduced by Senators Caswell, Jones, Green, Booher, Jansen, Marleau, Pappageorge and Emmons
ENROLLED SENATE BILL No. 738
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,” by amending section 3101a (MCL 500.3101a), as amended by 2011 PA 91.
The People of the State of Michigan enact:
Sec. 3101a. (1) Except as otherwise provided in this section, an insurer, in conjunction with the issuance of an automobile insurance policy, as defined in section 3303, shall provide 2 certificates of insurance for each insured vehicle. The insurer shall mark 1 of the certificates as the secretary of state’s copy, which copy, except as otherwise provided in this section, shall be filed with the secretary of state by the policyholder upon application for a vehicle registration. The secretary of state shall not maintain the certificate of insurance received under this subsection on file.
(2) Beginning December 30, 2011, an insurer, in conjunction with the issuance of an automobile insurance policy, shall provide to the insured 1 certificate of insurance for each insured vehicle, and for private passenger nonfleet automobiles listed on the policy shall supply to the secretary of state, in the format and timeline as required by the secretary of state, which shall not be required more frequently than every 14 days, the automobile insurer’s name, the named insured, the named insured’s address, the vehicle identification number for each such vehicle listed on the policy, and the policy number. Until December 31, 2018, the secretary of state shall provide policy information received under this subsection to the department of community health as required for the department of community health to comply with 2006 PA 593, MCL 550.281 to 550.289. In determining the format under this subsection, the secretary of state shall consult with insurers. As used in this subsection, “private passenger nonfleet automobile” means that term as defined in section 3303.
(3) The secretary of state shall accept as proof of vehicle insurance a transmission of the insured vehicle’s vehicle identification number. Policy information submitted by an insurer and received by the secretary of state under this section is confidential, is not subject to the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, and shall not be disclosed to any person except the department of community health for purposes of 2006 PA 593, MCL 550.281 to 550.289, or pursuant to an order by a court of competent jurisdiction in connection with a claim or fraud investigation or prosecution. The transmission to the secretary of state of a vehicle identification number is proof of insurance to the secretary of state for motor vehicle registration purposes only and is not evidence that a policy of insurance actually exists between an insurer and an individual.
(4) A person who supplies false information to the secretary of state under this section or who issues or uses an altered, fraudulent, or counterfeit certificate of insurance is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,000.00, or both.
(5) The department of community health shall report to the senate and house of representatives appropriations committees and standing committees concerning insurance issues on the number of claims and total dollar amount recovered from automobile insurers pursuant to 2006 PA 593, MCL 550.281 to 550.289. The reports required by this subsection shall be given to the appropriations committees and standing committees concerning insurance issues by December 30 of each year through December 30, 2018 and shall cover the preceding 12-month period.
This act is ordered to take immediate effect.
Secretary of the Senate
Clerk of the House of Representatives
Approved
Governor
