Bill Text: MI HB5149 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Insurance; unfair trade practices; insurance whistleblower protection fund; create. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2035a. TIE BAR WITH: HB 4846'09, HB 5144'09

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-08-26 - Referred To Committee On Economic Development And Regulatory Reform [HB5149 Detail]

Download: Michigan-2009-HB5149-Engrossed.html

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HB-5149, As Passed House, August 19, 2009

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5149

 

June 25, 2009, Introduced by Rep. Ebli and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

(MCL 500.100 to 500.8302) by adding section 2035a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2035a. (1) The insurance whistleblower protection fund is

 

created within the state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the fund. The state treasurer shall

 

direct the investment of the fund. The state treasurer shall credit

 

to the fund interest and earnings from fund investments.

 

     (3) Money in the fund at the close of the fiscal year shall

 

remain in the fund and shall not lapse to the general fund.

 

     (4) The office of financial and insurance regulation shall be

 

the administrator of the fund for auditing purposes.

 

     (5) The office of financial and insurance regulation shall

 

expend money from the insurance whistleblower protection fund, upon

 

appropriation, only for 1 or more of the following purposes:

 

     (a) Not more than 10% of the amount deposited each year into

 

the fund shall be used to pay the costs of administering the fund

 

and the reward program.

 

     (b) Not more than 50% of the amount deposited each year into

 

the fund shall be used for consumer information and education

 

concerning insurance practices and consumer insurance rights.

 

     (c) The balance of the fund may be used to reward full-time or

 

part-time employees of an insurer regulated under this act who

 

report an unfair or deceptive act or practice in the business of

 

insurance that is a violation of this act, if the information the

 

employee provides aids in an administrative or judicial action

 

against the employer. The amount of each reward shall be determined

 

by the office of financial and insurance regulation, based on the

 

severity of the offense reported, the importance of the information

 

provided to the prosecution, the outcome of the administrative or

 

judicial proceeding, and the amount of the fund balance.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 95th Legislature are

 

enacted into law:

 

     (a) Senate Bill No.____ or House Bill No. 5144(request no.

 

01155'09).

 

     (b) House Bill No. 4846.