Bill Text: MI SB1061 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Insurance; no-fault; expired, terminated, or canceled automobile insurance; require notification to secretary of state. Amends sec. 3101a of 1956 PA 218 (MCL 500.3101a).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-09-16 - Referred To Committee On Insurance [SB1061 Detail]

Download: Michigan-2013-SB1061-Introduced.html

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SENATE BILL No. 1061

 

 

September 16, 2014, Introduced by Senator BIEDA and referred to the Committee on Insurance.

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 3101a (MCL 500.3101a), as amended by 2011 PA

 

91.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3101a. (1) Except as otherwise provided in this section,

 

an insurer, in conjunction with the issuance of an automobile

 

insurance policy, as defined in section 3303, shall provide 2

 

certificates of insurance for each insured vehicle. The insurer

 

shall mark 1 of the certificates as the secretary of state's copy,

 

which copy, except as otherwise provided in this section, shall be

 

filed with the secretary of state by the policyholder upon

 

application for a vehicle registration. The secretary of state

 

shall not maintain the certificate of insurance received under this

 

subsection on file.

 

     (1) (2) Beginning December 30, 2011, an 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 for private passenger nonfleet automobiles

 

listed on the policy shall supply to the secretary of state , in

 

the format and timeline as required by the secretary of state,

 

which shall not be required more frequently than every 14 days, the

 

automobile insurer's name, the name of the named insured, the named

 

insured's address, the vehicle identification number for each such

 

private passenger nonfleet vehicle listed on the policy, and the

 

policy number. The insurer shall supply the information required

 

under this subsection in the format and on a timeline as required

 

by the secretary of state. The secretary of state shall not require

 

the submission of information under this subsection more frequently

 

than every 14 days. In determining the format under this

 

subsection, the secretary of state shall consult with insurers. As

 

used in this subsection, "private passenger nonfleet automobile"

 

means that term as defined in section 3303.

 

     (2) An insurer shall notify the secretary of state if an

 

automobile insurance policy expires without being renewed or is

 

terminated or if a policyholder cancels his or her automobile

 

insurance policy. The notice of expiration, termination, or

 

cancellation shall contain all of the following information:

 

     (a) The vehicle identification number.

 

     (b) The name and address of the policy holder.

 

     (c) The insurance policy number.

 

     (d) The time and date of expiration, termination, or

 

cancellation.

 

     (3) Until December 31, 2014, the secretary of state shall

 

provide policy information received under this subsection (1) to

 

the department of community health as required for the department

 

of community health to comply with 2006 PA 593, MCL 550.281 to

 

550.289. In determining the format under this subsection, the

 

secretary of state shall consult with insurers. As used in this

 

subsection, "private passenger nonfleet automobile" means that term

 

as defined in section 3303.

 

     (4) (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 community health 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.

 

     (5) (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 community health 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

 

pursuant to 2006 PA 593, MCL 550.281 to 550.289. The reports

 

required by this subsection shall be given to the appropriations

 

committees and standing committees concerning insurance issues by

 

December 30, 2012 and December 30, 2013 and shall cover the

 

immediately preceding 12-month period.