HOUSE BILL No. 4676


     April 23, 1997, Introduced by Rep. Nye 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 section 2255.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 2255.  (1) IF PAYMENT OF $500.00 OR MORE IS MADE BY AN

 2    INSURER TO AN ATTORNEY OR OTHER REPRESENTATIVE OF A CLAIMANT IN

 3    FULL OR PARTIAL SETTLEMENT OF A CLAIM, THE INSURER SHALL PROVIDE

 4    WRITTEN NOTICE TO THE CLAIMANT AT THE SAME TIME THE PAYMENT IS

 5    MADE TO THE ATTORNEY OR OTHER REPRESENTATIVE.  THE WRITTEN NOTICE

 6    SHALL INCLUDE ALL OF THE FOLLOWING:

 7         (A) THE NAME OF THE PAYEE ON THE DRAFT, CHECK, OR OTHER

 8    INSTRUMENT.

 9         (B) THE AMOUNT OF THE PAYMENT AND THE DATE THE PAYMENT WAS

10    MADE.




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 1         (C) WHETHER THE PAYMENT WAS IN FULL OR PARTIAL SETTLEMENT OF

 2    THE CLAIM.

 3         (2) FAILURE TO GIVE THE NOTICE REQUIRED BY THIS SECTION DOES

 4    NOT CREATE A CAUSE OF ACTION AGAINST AN INSURER OR PROVIDE A

 5    DEFENSE TO A CAUSE OF ACTION AGAINST AN INSURER.














































   02287'97          Final page.                            DKH