Bill Text: MI HB4041 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Insurance; insurers; expired, terminated, or canceled automobile insurance; require notification to secretary of state, and increase fines for second offense of operating vehicle without insurance. Amends secs. 3101a & 3102 of 1956 PA 218 (MCL 500.3101a & 500.3102). TIE BAR WITH: HB 4010'17

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-01-18 - Bill Electronically Reproduced 01/18/2017 [HB4041 Detail]

Download: Michigan-2017-HB4041-Introduced.html

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HOUSE BILL No. 4041

 

 

January 18, 2017, Introduced by Rep. Lucido and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 3101a and 3102 (MCL 500.3101a and 500.3102),

 

section 3101a as amended by 2014 PA 419 and section 3102 as amended

 

by 1990 PA 79.

 

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.

 

     (1) (2) Beginning December 30, 2011, an 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 name of the named insured, the named

 

insured's address, the vehicle identification number for each such

 

private passenger nonfleet vehicle listed on the policy, and the

 

policy number. The insurer shall transmit the information required

 

under this subsection electronically immediately on issuance of the

 

automobile policy. As used in this subsection, "private passenger

 

nonfleet automobile" means that term as defined in section 3303.

 

     (2) An insurer or insurance producer shall notify the

 

secretary of state if an automobile insurance policy expires

 

without being renewed or is terminated or if a policyholder cancels

 

his or her automobile insurance policy. The notice must be

 

transmitted electronically immediately on expiration, termination,

 

or cancellation of the policy. The notice must contain all of the

 

following information:

 

     (a) The vehicle identification number.

 

     (b) The name and address of the policy holder.

 

     (c) The insurance policy number.

 

     (d) The time and date of expiration, termination, or

cancellation.

 

     (3) Until December 31, 2018, the secretary of state shall

 

provide policy information received under this subsection (1) to

 

the department of community health and human services as required

 

for the department of community health and human services 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.

 

     (4) (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 and human

 

services 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.

 

     (5) (4) A person who fails to supply information to the

 

secretary of state or 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.

 

     (6) (5) The department of community health and human services

 

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 under 2006 PA 593,

 

MCL 550.281 to 550.289. The reports required by this subsection

 

shall must be given to the appropriations committees and standing

 

committees concerning insurance issues by December 30 of each year

 

through December 30, 2018 and shall must cover the preceding 12-

 

month period.

 

     Sec. 3102. (1) A nonresident owner or registrant of a motor

 

vehicle or motorcycle not registered in this state shall not

 

operate or permit the motor vehicle or motorcycle to be operated in

 

this state for an aggregate of more than 30 days in any calendar

 

year unless he or she continuously maintains security for the

 

payment of benefits pursuant to under this chapter.

 

     (2) An owner or registrant of a motor vehicle or motorcycle

 

with respect to which security is required , under this chapter who

 

operates the motor vehicle or motorcycle or permits it to be

 

operated upon on a public highway in this state , without having in

 

full force and effect the security complying with this section or

 

section 3101 or 3103 required under this chapter in effect is

 

guilty of a misdemeanor. A person who operates a motor vehicle or

 

motorcycle upon on a public highway in this state with the

knowledge that the owner or registrant does not have the security

 

required under this chapter in full force and effect is guilty of a

 

misdemeanor. A person convicted of a misdemeanor under this section

 

shall must be fined not less than $200.00 nor more than $500.00 for

 

a first offense or $1,000.00 for a second or subsequent offense,

 

imprisoned for not more than 1 year, or both.

 

     (3) The failure of a person to produce evidence that a motor

 

vehicle or motorcycle has in full force and effect the security

 

complying with this section or section 3101 or 3103 required under

 

this chapter in effect on the date of the issuance of the a

 

citation , for a violation of subsection (2) creates a rebuttable

 

presumption in a prosecution under subsection (2) for the violation

 

that the motor vehicle or motorcycle did not have in full force and

 

effect the security complying with this section or section 3101 or

 

3103 required under this chapter in effect on the that date. of the

 

issuance of the citation.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 4010 (request no.

 

01139'17) of the 99th Legislature is enacted into law.