Bill Text: MI SB0340 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Insurance; no-fault; insurer interests in certain motor vehicle repair facilities; prohibit. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding ch. 21B.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2013-05-01 - Referred To Committee On Insurance [SB0340 Detail]

Download: Michigan-2013-SB0340-Introduced.html

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SENATE BILL No. 340

 

 

May 1, 2013, Introduced by Senators BRANDENBURG, SMITH and GREEN 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 chapter 21B.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

CHAPTER 21B. INSURER INTERESTS IN REPAIR FACILITIES

 

     Sec. 2171. As used in this chapter:

 

     (a) "Insurer" means an automobile insurer and includes an

 

entity that is an affiliate of the insurer.

 

     (b) "Repair facility" means a motor vehicle repair facility as

 

defined in section 2 of the motor vehicle service and repair act,

 

1974 PA 300, MCL 257.1302.

 

     Sec. 2173. Except as provided in this chapter, an insurer may

 

not own or acquire an ownership interest in a repair facility.

 

     Sec. 2175. (1) An insurer that has an ownership interest in a

 

repair facility on the effective date of the amendatory act that

 

added this chapter shall divest itself of any ownership interest in

 

that facility by December 31, 2013.

 

     (2) During the period in which the insurer maintains its

 

interest in the repair facility before the divestiture required

 

under subsection (1), the insurer shall do all of the following:

 

     (a) Post a notice in not less than 18-point font at the

 

customer entrance of each of the repair facilities in which the

 

insurer has an ownership interest stating:

 

     "This repair facility is owned in whole or in part by (insert

 

name of insurer). You are hereby notified that you are entitled to

 

seek repairs at a repair facility of your choice.".

 

     (b) Notify an insured in writing at the time a policy is

 

delivered, issued for delivery, or renewed of the insurer's

 

ownership interest and that the insured is entitled to seek repairs

 

at a repair facility of his or her choice.

 

     (c) Notify an insured verbally at the time a claim is filed of

 

the insurer's ownership interest and that the insured is entitled

 

to seek repairs at a repair facility of his or her choice.

 

     Sec. 2177. (1) A person, including, but not limited to, a

 

repair facility, aggrieved by a violation of this chapter by an

 

insurer may bring an action for injunctive or other appropriate

 

relief to compel the insurer to comply with this chapter.

 

     (2) A plaintiff who prevails in an action under this section

 

is entitled to recover reasonable attorney fees and court costs.

 

     Sec. 2179. An insurer shall not develop a list of preferred

 

repair facilities or in any other way convey to an insured

 

information regarding which repair facility the insured should seek

 

repairs from in the event of a claim.