Bill Text: MI HB5848 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Traffic control: driver license; cross references to Michigan vehicle code; update. Amends secs. 3303 & 3320 of 1956 PA 218 (MCL 500.3303 & 500.3320.
Spectrum: Moderate Partisan Bill (Democrat 29-5)
Status: (Introduced - Dead) 2020-09-24 - Re-referred To Committee On Judiciary [HB5848 Detail]
Download: Michigan-2019-HB5848-Introduced.html
HOUSE BILL NO. 5848
June 11, 2020, Introduced by Reps. Lasinski,
Yancey, Stone, Bolden, Hood, Brenda Carter, Tyrone Carter, Hope, Whitsett,
Sneller, Sabo, Warren, Sowerby, Cambensy, Clemente, Cherry, Manoogian,
Kuppa, Hoadley, Gay-Dagnogo, Guerra, Brann, O'Malley, Kahle, Wozniak,
Brixie, Peterson, Meerman, Ellison, Wittenberg, Hammoud, Kennedy, Chirkun
and Cynthia Johnson and referred to the Committee on Judiciary.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 3303 and 3320 (MCL 500.3303 and 500.3320), section 3303 as amended by 1980 PA 461 and section 3320 as amended by 2012 PA 204.
the people of the state of michigan enact:
Sec. 3303. As used in this chapter:
(a) "Automobile
insurance" means insurance for automobiles which provides any of the
following:
(i) Security required pursuant to under section 3101.
(ii) Personal
protection, property protection, and residual liability insurance for amounts
in excess of the amounts required under chapter 31.
(iii) Insurance
coverage customarily known as comprehensive and collision.
(iv) Other insurance
coverages for a private passenger nonfleet automobile as prescribed by rule
promulgated by the commissioner.
(b) "Qualified applicant", for automobile
insurance, means a person who is an owner or registrant of an automobile
registered or to be registered in this state or who holds a valid license to
operate a motor vehicle, but does not include any of the following:
(i) A person who is
not required to maintain security pursuant to under section 3101, unless the person intends
to reside in this state for 30 days or more and makes a written statement of
that intention on a form approved by the commissioner.
(ii) A person whose
license to operate a vehicle is under suspension or revocation, unless the
suspension was made pursuant
to under section
310, 310b, 310d,
315, 321a, 324, 328, 512,
515, 625, 625b, 625f, 748, 801c, or 907 of Act No. 300 of the Public Acts of 1949, as amended, being
sections the
Michigan vehicle code, 1949 PA 300, MCL 257.310, 257.310b, 257.310d,
257.315, 257.321a, 257.324, 257.328,
257.512, 257.515, 257.625, 257.625b, 257.625f, 257.748, 257.801c,
and 257.907. of the Michigan Compiled Laws.
(iii) A person whose
policy of automobile insurance has been cancelled canceled because of nonpayment of premium or
finance premium within the immediately preceding 2-year period, unless the
applicant or insured pays in full a premium installment developed under section
3350(a) before issuance, continuation, or renewal of the policy.
(c) "Facility" means the automobile insurance
placement facility created pursuant
to under this
chapter.
(d) "Participating member" means an insurer who is required
by this chapter to be a member of the facility and who in any given calendar
year has a participation ratio greater than zero in the facility for that year.
(e) "Participation ratio" means the ratio of the
participating member's Michigan premiums or exposure units to the comparable
statewide totals for all participating members, as follows:
(i) For private
passenger nonfleet automobile insurance, for distribution of risk or
distribution of loss, the ratio shall must be based on voluntary net direct
automobile insurance car years written in this state for the calendar year
ending December 31 of the second prior year as reported to the statistical
agent of each participating member as private passenger nonfleet exposure.
(ii) For all other
automobile insurance, including insurance for fleets, commercial vehicles,
public vehicles, and garages, the ratio for distribution of risks or
distribution of loss shall must be based on the
total Michigan automobile insurance gross direct premiums written, including
policy and membership fees, less return premiums and premiums on policies not
taken, without including reinsurance assumed and without deducting reinsurance
ceded, reduced by the amount of premiums reported as private passenger nonfleet
for the calendar year ending December 31 of the second prior year.
(iii) For expenses of
operation of the facility and for voting rights, the ratio shall must be based on the
total Michigan automobile insurance gross direct premiums written, including
policy and membership fees, less return premiums and premiums on policies not
taken, without including reinsurance assumed and without deducting reinsurance
ceded for the calendar year ending December 31 of the second prior year.
(f) "Private passenger nonfleet automobile" means a
motorized vehicle designed for transporting passengers or goods, subject to
specific contemporary definitions for insurance purposes as provided in the
plan of operation.
Sec. 3320. (1) The
facility, with respect to private passenger nonfleet automobiles, shall provide
for all of the following:
(a) The equitable distribution of applicants to designated
participating members in accordance with the plan of operation.
(b) Issuance of policies of automobile insurance to qualified
applicants as provided in the plan of operation.
(c) The appointment of a number of participating members
appointed by the facility to act on behalf of the facility for the distribution
of risks or for the servicing of insureds, as provided in the plan of operation
and consistent with this section. The facility shall do all of the following:
(i) Appoint those
members having the 5 highest participation ratios, as defined in section
3303(e)(i), to act on behalf of the facility.
(ii) Appoint other
members to act on behalf of the facility who volunteer to so act and who meet
reasonable servicing standards established in the plan of operation, up to a
maximum of 5 in addition to those appointed pursuant to under subparagraph (i).
(iii) Appoint
additional members to act on behalf of the facility as necessary to do all of
the following:
(A) Assure convenient access to the facility for all citizens
of this state.
(B) Assure a reasonable quality of service for persons
insured through the facility.
(C) Assure a reasonable representation of the various
insurance marketing systems.
(D) Assure reasonable claims handling.
(E) Assure a reasonable range of choice of insurers for
persons insured through the facility.
(d) Standards and monitoring procedures to assure that
participating members acting on behalf of the facility do all of the following:
(i) Provide service
to persons insured through the facility equivalent to the service provided to
persons insured by the insurer voluntarily.
(ii) Handle claims in
an efficient and reasonable manner.
(iii) Provide internal
review procedures for persons insured through the facility identical to those
established pursuant to under chapter 21 for
persons insured voluntarily.
(e) The establishment of procedures and guidelines for the
issuance of binders by agents upon receipt of the application for coverage.
(f) Issuance of policies of automobile insurance to qualified
applicants whose licenses to operate a vehicle have been suspended under
section 310, 310d, 315, 321a, 324, 328, 512, 515, 625, 625b, 625f, 748, 801c, or
907 of the Michigan vehicle code, 1949 PA 300, MCL 257.310, 257.310d, 257.315,
257.321a, 257.324, 257.328, 257.512,
257.515, 257.625, 257.625b, 257.625f, 257.748, 257.801c, and 257.907, as
provided in the plan of operation. These policies may be canceled after a
period of not less than 30 days if the insured fails to produce proof that the
suspended license has been reinstated.
(g) Administration of the assigned claims plan as required
under chapter 31.
(2) Automobile insurance made available under this section
shall be equivalent to the automobile insurance normally available in the
voluntary competitive market in forms as approved by the commissioner with any
changes, additions, and amendments adopted by the board of governors and
approved by the commissioner.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No.____ or House Bill No. 5846 (request no. 05617'20 *) of the 100th Legislature is enacted into law.
