HOUSE BILL No. 5004


     July 3, 1997, Introduced by Reps. Walberg, Freeman, Voorhees, Hammerstrom, DeHart, Jellema, Dalman, Prusi, Anthony, Lowe, Wetters, Profit, Gernaat, Goschka, McNutt, McBryde, Cropsey, Nye, Baade, DeVuyst, Price and Perricone and referred to the Committee on Insurance.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 2104 (MCL 500.2104), as amended by 1980

   PA 461.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 2104.  (1) "Private passenger nonfleet automobile"

 2    means a motorized land vehicle designed for transporting passen-

 3    gers or goods, subject to specific contemporary definitions for

 4    insurance purposes pursuant to section 3303.

 5         (2) "Repair cost policy" means a home insurance policy for

 6    which the amount of coverage under the policy is based substan-

 7    tially on the market value of the property, and  which  THAT pro-

 8    vides for payment for repair, rebuilding, or replacement of

 9    losses or damages to real property with materials of like kind

10    and quality, without depreciation, pursuant to section 2826, or


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 1    with conventional materials and construction methods, pursuant to

 2    the standards of section 2827.

 3         (3) "Replacement cost policy" means a home insurance policy

 4    for which the amount of coverage under the policy is based sub-

 5    stantially on the replacement cost of the property,  which  THAT

 6    provides for settlement of losses to real property pursuant to

 7    the standards prescribed in section 2826.

 8         (4) "Substantially at-fault" means a person's action or

 9    inaction was more than 50% of the cause of an accident.  IF A LAW

10    ENFORCEMENT AGENCY HAS INVESTIGATED AN ACCIDENT AND HAS NOT MADE

11    A DETERMINATION THAT AN INDIVIDUAL WAS SUBSTANTIALLY AT-FAULT, AN

12    AUTOMOBILE INSURER SHALL NOT MAKE A DETERMINATION THAT AN INDI-

13    VIDUAL WAS SUBSTANTIALLY AT-FAULT.  IF A LAW ENFORCEMENT AGENCY

14    HAS INVESTIGATED AN ACCIDENT AND HAS MADE A DETERMINATION THAT AN

15    INDIVIDUAL WAS SUBSTANTIALLY AT-FAULT, AN AUTOMOBILE INSURER

16    SHALL NOT MAKE A SUBSTANTIALLY AT-FAULT DETERMINATION THAT IS

17    CONTRARY TO THE DETERMINATION MADE BY THE INVESTIGATING LAW

18    ENFORCEMENT AGENCY.

19         (5) "Termination" means a refusal to continue to insure, for

20    reasons other than nonpayment of premium, and includes both of

21    the following:

22         (a) The transfer of coverage for an insured between affili-

23    ated insurers, when the transfer results in higher rates or less

24    coverage, unless the transfer was requested by the insured.

25         (b) The offering of coverage with less favorable terms or

26    conditions than those previously provided, unless so requested by

27    the insured, or unless the terms or conditions of coverage



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 1    previously provided are no longer available from the insurer

 2    anywhere in this state.

 3         (6) "Underwriting rules" means the written statements,

 4    guidelines, or criteria of an insurer, phrased in terms under-

 5    standable to a person of ordinary intelligence,  which  THAT

 6    describe the standards under which the insurer issues, refuses to

 7    issue, renews, refuses to renew, or limits coverage for automo-

 8    bile insurance or home insurance to persons within this state.








































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