Bill Text: MI HB5272 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Insurance; other; insurance rate comparisons posted on the department's website; require, and provide penalties for insurers that submit to the department false or misleading information about rates. Amends secs. 2108 & 2478 of 1956 PA 218 (MCL 500.2108 & 500.2478) & adds sec. 2108a.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-11-29 - Bill Electronically Reproduced 11/28/2017 [HB5272 Detail]
Download: Michigan-2017-HB5272-Introduced.html
HOUSE BILL No. 5272
November 28, 2017, Introduced by Reps. Lasinski, Moss, Rabhi, Faris, Sowerby, Chang, Hoadley, Cochran, Greig, Chirkun, Zemke, Wittenberg and Pagan and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 2108 and 2478 (MCL 500.2108 and 500.2478),
section 2108 as amended by 2015 PA 141 and section 2478 as amended
by 1984 PA 7, and by adding section 2108a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2108. (1) On the effective date of a manual of
classification, manual of rules and rates, rating plan, or
modification of a manual of classification, manual of rules and
rates, or rating plan that an insurer proposes to use for
automobile insurance or home insurance, the insurer shall file the
manual or plan with the director. Each filing under this subsection
must state the character and extent of the coverage contemplated.
An insurer that is subject to this chapter and that maintains rates
in any part of this state shall at all times maintain rates in
effect for all eligible persons meeting the underwriting criteria
of the insurer.
(2) An insurer may satisfy its obligation to make filings
under subsection (1) by becoming a member of, or a subscriber to, a
rating organization licensed under chapter 24 or chapter 26 that
makes the filings, and by filing with the director a copy of its
authorization of the rating organization to make the filings on its
behalf. This chapter does not require an insurer to become a member
of or a subscriber to a rating organization. An insurer may file
and use deviations from filings made on its behalf. The deviations
are subject to this chapter.
(3) A filing under this section must be accompanied by a
certification by or on behalf of the insurer that, to the best of
the insurer's information and belief, the filing conforms to the
requirements of this chapter.
(4) A filing under this section must include information that
supports the filing with respect to the requirements of section
2109. The information may include 1 or more of the following:
(a) The experience or judgment of the insurer or rating
organization making the filing.
(b) The interpretation of the insurer or rating organization
of any statistical data it relies on.
(c) The experience of other insurers or rating organizations.
(d) Any other relevant information.
(5) Except as otherwise provided in this subsection, the
department shall make a filing under this section and any
accompanying information open to public inspection on filing. An
insurer or a rating organization filing on the insurer's behalf may
designate information included in the filing or any accompanying
information as a trade secret. The insurer or the rating
organization filing on behalf of the insurer shall demonstrate to
the director that the designated information is a trade secret. If
the director determines that the information is a trade secret, the
information is not subject to public inspection and is exempt from
the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
As used in this subsection, "trade secret" means that term as
defined in section 2 of the uniform trade secrets act, 1998 PA 448,
MCL 445.1902. However, trade secret does not include filings and
information accompanying filings under this section that were
subject
to public inspection before the effective date of the
amendatory
act that added this sentence.January
11, 2016.
(6) An insurer shall not make, issue, or renew a contract or
policy except in accordance with filings that are in effect for the
insurer under this chapter.
(7) An insurer that knowingly includes false or misleading
information in a filing under this section shall pay a civil fine
not to exceed $100,000.00 to be recovered by the director and paid
into the general fund.
Sec. 2108a. Beginning January 1, 2018 and each January 1
thereafter, the department shall post on the department's website a
comparison of insurance rates, based on filings under sections 2108
and 2406, for those lines of insurance that the director determines
are of most interest to individual purchasers of insurance. The
posting under this section must be designed to provide useful
information to consumers so that they may make informed comparisons
of rates. The posting must include sample policy rates or premiums
for sample consumers.
Sec.
2478. (1) Subject to subsection subsections
(3) and (4),
the
commissioner director may, if he or she finds that any person
or
organization a person has violated a provision of this chapter,
previous
to before the date of his or her finding, impose a civil
fine of not more than $300.00 for each violation, and if the
violation
is wilful, willful, the commissioner director may
impose
a civil fine of not more than $1,500.00 for each violation. A civil
fine shall not be imposed for an offense that was committed more
than
12 months prior to before the date of the commissioner's
director's
findings. A fine collected under this
subsection shall
must be turned over to the state treasurer and credited to the
general
fund of the this state.
(2)
The commissioner director may suspend the license of any a
rating
organization or insurer which that
fails to comply with an
order
of the commissioner director
within the time specified by the
order,
or any extension of the order which that the commissioner
may
grant, director grants, but the suspension shall does not
affect the validity or continued effectiveness of rates previously
filed
and effective. The commissioner director
shall not suspend
the
license of any a rating organization or insurer for failure to
comply with an order until the time prescribed for an appeal from
the order has expired, or, if an appeal has been taken, until the
order
has been affirmed. The commissioner director may determine
when
a suspension of license shall become becomes effective, and
the
suspension shall remain remains
in effect for the period fixed
by
him or her, time ordered by
the director unless he or she the
director modifies or rescinds the suspension, or until the order
upon
on which the suspension is based is modified,
rescinded, or
reversed.
(3) A civil fine shall not be imposed and a license shall not
be
suspended or revoked except upon on a written order of the
commissioner,
director specifying the alleged violation and stating
his
or her findings, made after a hearing held upon on not
less
than
10 days' written notice to the person or organization. An
Except as otherwise provided in subsection (4), an order issued by
the
commissioner pursuant to director
under this section shall not
require the payment of civil fines exceeding $10,000.00.
(4) Both of the following apply to a violation of section
2474:
(a) For a person who willfully withholds information, the
person shall pay a civil fine not to exceed $5,000.000 for each 30-
day period that the person violates section 2474 as described in
this subdivision. A civil fine under this subdivision must not
exceed $100,000.00 to be recovered by the director and paid into
the general fund.
(b) For a person who knowingly gives false or misleading
information, the person shall pay a civil fine not to exceed
$100,000.00 to be recovered by the director and paid into the
general fund.
