HOUSE BILL No. 4563


     April 8, 1997, Introduced by Reps. McNutt, Cherry, Goschka, Hammerstrom and Voorhees 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 1996 PA

   456.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 3101a.  (1) An insurer  , in conjunction with the issu-

 2     ance of  THAT ISSUES an automobile insurance policy, as defined

 3    in section 3303, shall provide 2 certificates of insurance for

 4    each insured vehicle.  The insurer shall mark 1 of the certifi-

 5    cates as the secretary of state's copy, which copy, except as

 6    otherwise provided in subsection  (2), shall be filed with the

 7    secretary of state by the policyholder upon application for a

 8    vehicle registration.  The secretary of state shall  not 

 9    maintain the certificate of insurance received under this

10    subsection on file.  AN INSURER SHALL NOTIFY THE SECRETARY OF


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 1    STATE AND THE LOCAL POLICE AGENCY OR COUNTY SHERIFF, AS

 2    APPLICABLE, IF A POLICY EXPIRES WITHOUT BEING RENEWED, IS TERMI-

 3    NATED, OR IF A POLICYHOLDER CANCELS HIS OR HER AUTOMOBILE INSUR-

 4    ANCE POLICY.  THE NOTICE OF EXPIRATION, TERMINATION, OR CANCELLA-

 5    TION SHALL CONTAIN ALL OF THE FOLLOWING INFORMATION:

 6         (A) THE VEHICLE IDENTIFICATION NUMBER.

 7         (B) THE NAME AND ADDRESS OF THE INSURER.

 8         (C) THE INSURANCE POLICY NUMBER.

 9         (D) THE TIME AND DATE OF EXPIRATION, TERMINATION, OR

10    CANCELLATION.

11         (2) The secretary of state shall accept as proof of vehicle

12    insurance a transmission, in the format required by the secretary

13    of state, of the insured vehicle's vehicle identification

14    number.  Vehicle identification numbers received by the secretary

15    of state under this subsection are confidential and shall not be

16    disclosed to any person except pursuant to an order by a court of

17    competent jurisdiction in connection with a claim or fraud inves-

18    tigation or prosecution.  The transmission to the secretary of

19    state of a vehicle identification number is proof of insurance to

20    the secretary of state for motor vehicle registration purposes

21    only and is not evidence that a policy of insurance actually

22    exists between an insurer and an individual.

23         (3) A person who FAILS TO SUPPLY INFORMATION TO THE SECRE-

24    TARY OF STATE OR THE LOCAL POLICE AGENCY OR COUNTY SHERIFF OR WHO

25    supplies false information to the secretary of state under this

26    section or who issues or uses an altered, fraudulent, or

27    counterfeit certificate of insurance is guilty of a misdemeanor



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 1    punishable by imprisonment for not more than 1 year, or a fine of

 2    not more than $1,000.00, or both.

 3         Enacting section 1.  This amendatory act does not take

 4    effect unless Senate Bill No. ________ or House Bill No. ________

 5    (request no. 02260'97) of the 89th Legislature is enacted into

 6    law.












































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