Bill Text: MI SB0744 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Insurance; no-fault; rate increases; require advance notification to insureds. Amends sec. 2112 of 1956 PA 218 (MCL 500.2112) & adds sec. 2107a.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2016-02-04 - Referred To Committee On Insurance [SB0744 Detail]

Download: Michigan-2015-SB0744-Introduced.html

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SENATE BILL No. 744

 

 

February 4, 2016, Introduced by Senators YOUNG and SMITH and referred to the Committee on Insurance.

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 2112 (MCL 500.2112), as amended by 2012 PA 454,

 

and by adding section 2107a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2107a. (1) At the time of a rate filing for automobile

 

insurance, the director shall prominently post the rate filing

 

information in plain language on the department's website.

 

     (2) Notwithstanding any other provision of this act, an

 

automobile insurer shall not increase rates for automobile

 

insurance unless written notice is given to insureds of the rate

 

increase filing not less than 60 days before the proposed effective

 

date of the new rates, stating in plain language the amount of the

 

increase and the insured's ability to request a public hearing and

 

provide written comments to the director concerning the rate

 

increase.

 

     (3) A person or organization aggrieved with respect to any

 

rate filing may request the director to conduct a public hearing to

 

provide input regarding the rate filing. The director may grant a

 

request for a public hearing and may designate 1 or more persons to

 

conduct the public hearing if the director considers a public

 

hearing necessary and appropriate for fact-finding or information

 

gathering before making decisions, policies, and determinations

 

allowable or required by law in the course of carrying out the

 

director's duties. In examining the rate filing, the director shall

 

take into account any relevant input received as a result of a

 

public hearing under this section.

 

     Sec. 2112. (1) At least annually, in conjunction with a

 

renewal notice, a bill, or other notice of payment due issued to a

 

policyholder in conjunction with an automobile or home insurance

 

contract, an insurer shall send to the policyholder a written

 

notice in plain language that all of the following information is

 

available and will be provided to the policyholder on request:

 

     (a) A description of the specific rating classifications by

 

which the rates and premiums for the policy have been determined.

 

The notice shall must be of sufficient detail and clarity so that

 

the policyholder can reasonably verify the applicability and

 

accuracy of the rating classifications.

 

     (b) A general explanation of the extent to which rates or

 

premiums vary among policyholders on the basis of the rating

 

classifications used by the insurer.

 

     (c) Sources and reasonable procedures by which the

 

policyholder can obtain from the insurer additional information

 

sufficient for the policyholder to calculate and confirm the

 

accuracy of his or her specific premium.

 

     (d) Relevant information regarding the rights of the

 

policyholder, under sections 2113 and 2114, to appeal the

 

application of the insurer's rating plan in determining his or her

 

premium, to obtain documentation from the insurer regarding the

 

determination of the rate, to appeal the application of the

 

insurer's underwriting rules to the policyholder, to request an

 

informal conference with the insurer, and to file with the

 

commissioner director a complaint as an aggrieved person.

 

     (e) A description of all of the insurer's underwriting rules

 

based on insurance eligibility points and a description of all of

 

the underwriting rules of the insurer's affiliates based on

 

insurance eligibility points.

 

     (f) A suggestion that the policyholder contact his or her

 

agent to determine if he or she is eligible for insurance from an

 

affiliate of the insurer or under a different rating plan of the

 

insurer that would provide to the policyholder insurance at a more

 

favorable premium.

 

     (2) In a written notice provided under subsection (1), the

 

insurer shall provide the policyholder with a telephone number and

 

an internet address, by either of which the policyholder may

 

contact the insurer to request the information listed in subsection

 

(1). On request of the policyholder, the insurer shall provide the

 

policyholder with the requested information in plain language in

 

either a written or electronic format, as requested by the

 

policyholder.