Bill Text: MI SB0512 | 2011-2012 | 96th Legislature | Introduced
Bill Title: Insurance; producers; sale of portable electronics insurance; regulate as limited lines insurance. Amends sec. 1201 of 1956 of 218 (MCL 500.1201). TIE BAR WITH: SB 0511'11
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2011-06-21 - Referred To Committee On Insurance [SB0512 Detail]
Download: Michigan-2011-SB0512-Introduced.html
SENATE BILL No. 512
June 21, 2011, Introduced by Senators MARLEAU and HILDENBRAND and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 1201 (MCL 500.1201), as amended by 2001 PA 228.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1201. As used in this chapter:
(a) "Agent" except as provided in section 1243 means an
insurance producer.
(b) "Business entity" means a corporation, association,
partnership, limited liability company, limited liability
partnership, or other legal entity.
(c) "Home state" means the District of Columbia or any state
or territory of the United States in which an insurance producer
maintains his or her principal place of residence or principal
place of business and is licensed to act as an insurance producer.
(d) "Insurance" means any of the lines of authority in chapter
6.
(e) "Insurance producer" means a person required to be
licensed under the laws of this state to sell, solicit, or
negotiate insurance.
(f) "License" means a document issued by this state's
commissioner authorizing a person to act as an insurance producer
for the qualifications specified in the document. The license
itself does not create any actual, apparent, or inherent authority
in the holder to represent or commit an insurer.
(g) "Limited line credit insurance" includes credit life,
credit disability, credit property, credit unemployment,
involuntary unemployment, mortgage life, mortgage guaranty,
mortgage disability, guaranteed automobile protection insurance,
and any other form of insurance offered in connection with an
extension of credit that is limited to partially or wholly
extinguishing that credit obligation that the commissioner
determines should be designated a form of limited line credit
insurance.
(h) "Limited line credit insurance producer" means a person
who sells, solicits, or negotiates 1 or more forms of limited line
credit insurance coverage to individuals through a master,
corporate, group, or individual policy.
(i) "Limited lines insurance" means any of the following:
(i) Marine insurance as defined in section 614.
(ii) Credit insurance as described in section 624(1)(e).
(iii) Surety and fidelity insurance as defined in section 628.
(iv) Legal expense insurance as defined in section 618.
(v) Livestock insurance as described in section 624(1)(g).
(vi) Malpractice insurance as described in section 624(1)(h).
(vii) Plate glass insurance as described in section 624(1)(c).
(viii) Any other miscellaneous insurance described in section
624(1)(i).
(ix) Portable electronics insurance as described in the
portable electronics insurance act.
(x) (ix) Any
other line of insurance that the commissioner
considers necessary to recognize for the purposes of complying with
section 1206a(5).
(j) "Limited lines producer" means a person authorized by the
commissioner to sell, solicit, or negotiate limited lines
insurance.
(k) "Negotiate" means the act of conferring directly with or
offering advice directly to a purchaser or prospective purchaser of
a particular contract of insurance concerning any of the
substantive benefits, terms, or conditions of the contract,
provided that the person engaged in that act either sells insurance
or obtains insurance from insurers for purchasers.
(l) "Sell" means to exchange a contract of insurance by any
means, for money or its equivalent, on behalf of an insurance
company.
(m) "Solicit" means attempting to sell insurance or asking or
urging a person to apply for a particular kind of insurance from a
particular company.
(n) "Terminate" means the cancellation of the relationship
between an insurance producer and the insurer or the termination of
a producer's authority to transact insurance.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 511
of the 96th Legislature is enacted into law.
