HOUSE BILL No. 5033


     July 9, 1997, Introduced by Reps. Schermesser and DeHart 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 2202.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 2202.  (1) BY MARCH 1, 1998, EACH DOMESTIC, FOREIGN,

 2    AND ALIEN INSURER AUTHORIZED TO TRANSACT INSURANCE IN THIS STATE

 3    SHALL PROVIDE TO ITS INSUREDS AND APPLICANTS FOR INSURANCE ALL OF

 4    THE FOLLOWING INFORMATION FOR EACH LINE OF INSURANCE WRITTEN IN

 5    THIS STATE FOR THE PRECEDING CALENDAR YEAR:

 6         (A) THE PERCENTAGE OF EACH PREMIUM DOLLAR THAT WAS FOR

 7    ADMINISTRATIVE COSTS, INCLUDING OPERATING EXPENSES AND AGENTS'

 8    COMMISSIONS.

 9         (B) THE PROFIT RATIO OF EACH PREMIUM DOLLAR.

10         (C) THE PERCENTAGE OF EACH PREMIUM DOLLAR THAT WAS PAID OUT

11    IN DIVIDENDS TO SHAREHOLDERS OR POLICYHOLDERS.


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 1         (2) THE COMMISSIONER SHALL DEVELOP BY DECEMBER 1, 1997 A

 2    FORM IN PLAIN ENGLISH THAT INSURERS SHALL USE IN COMPLYING WITH

 3    THIS SECTION.


















































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