Bill Text: MI SB0009 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Insurance: insurers; issuance of automobile insurance; require notification to secretary of state in coordination with vehicle insurance verification act. Amends sec. 3101a of 1956 PA 218 (MCL 500.3101a).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-01-15 - Referred To Committee On Insurance And Banking [SB0009 Detail]
Download: Michigan-2019-SB0009-Introduced.html
SENATE BILL No. 9
January 15, 2019, Introduced by Senator LUCIDO and referred to the Committee on Insurance and Banking.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 3101a (MCL 500.3101a), as amended by 2018 PA
510.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3101a. (1) 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, subject to
subsection (6), for private passenger nonfleet automobiles listed
on the policy shall supply to the secretary of state the automobile
insurer's name, the name of the named insured, the named insured's
address, the vehicle identification number for each vehicle listed
on the policy, and the policy number. The insurer shall transmit
the information required under this subsection in a format as
required by the secretary of state. The secretary of state shall
not require the information to be transmitted more frequently than
every 14 days.
(2)
The Until the information
is no longer supplied to the
secretary of state as provided in subsection (6), the secretary of
state shall provide policy information received under subsection
(1) to the department of health and human services as required for
the department of health and human services to comply with 2006 PA
593, MCL 550.281 to 550.289.
(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 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.
(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.
(5) The department of 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 under 2006 PA 593, MCL 550.281 to 550.289. The
reports required by this subsection must be given to the
appropriations committees and standing committees concerning
insurance issues by December 30 of each year and must cover the
preceding 12-month period.
(6) The requirement under subsection (1) that an insurer
supply information to the secretary of state does not apply after
the director certifies, by a certification posted on the department
website, that the online insurance verification system established
under the vehicle insurance verification act is operational.
(7) (6)
As used in this section:
(a) "Automobile insurance" means that term as defined in
section 3303.
(b) "Private passenger nonfleet automobile" means that term as
defined in section 3303.
