Bill Text: MI HB5527 | 2013-2014 | 97th Legislature | Introduced

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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 5526'14

Spectrum: Partisan Bill (Democrat 16-0)

Status: (Introduced - Dead) 2014-05-08 - Printed Bill Filed 05/07/2014 [HB5527 Detail]

Download: Michigan-2013-HB5527-Introduced.html

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HOUSE BILL No. 5527

 

May 6, 2014, Introduced by Reps. Segal, Cochran, Abed, Stanley, Driskell, Dianda, Lamonte, Hobbs, Rutledge, LaVoy, Slavens, Phelps, Faris, Lipton, Darany and Brown 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 insurance whistleblower protection

 

fund. The state treasurer shall direct the investment of the

 

insurance whistleblower protection fund. The state treasurer shall

 

credit to the insurance whistleblower protection fund interest and

 

earnings from fund investments.

 

     (3) Money in the insurance whistleblower protection fund at

 

the close of the fiscal year shall remain in the insurance

 

whistleblower protection fund and shall not lapse to the general

 

fund.

 

     (4) The department of insurance and financial services shall

 

be the administrator of the insurance whistleblower protection fund

 

for auditing purposes.

 

     (5) The department of insurance and financial services 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 insurance whistleblower protection fund shall be used to pay

 

the costs of administering the insurance whistleblower protection

 

fund and the reward program described in subdivision (c).

 

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

 

the insurance whistleblower protection fund shall be used for

 

consumer information and education concerning insurance practices

 

and consumer insurance rights.

 

     (c) The balance of the insurance whistleblower protection fund

 

may be used to reward a full-time or part-time employee of an

 

insurer regulated under this act who reports 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 insurer. The amount

 

of each reward shall be determined by the department of insurance

 

and financial services, 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 insurance whistleblower

 

protection fund balance.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5526 (request no.

 

03843'13) of the 97th Legislature is enacted into law.