HOUSE BILL No. 5723


     March 31, 1998, Introduced by Reps. Gagliardi, Freeman, Profit, Mans, Callahan, Brown, Wojno, Anthony, Bogardus, DeHart, Cherry, Frank, Kelly, Schauer, Harder, Baird, Gire, Baade, Mathieu, Basham, Curtis, Prusi, Brater, Olshove, Stallworth, Alley, Quarles, Owen, Martinez, Scott, Schermesser and Thomas 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 2111f.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 2111F.  (1) BY OCTOBER 1, 1998, AN AUTOMOBILE INSURER

 2    SHALL REBATE TO ITS MICHIGAN INSUREDS THE MONEY RECEIVED IN 1998

 3    FROM THE CATASTROPHIC CLAIMS ASSOCIATION PLAN TO REDUCE ITS

 4    SURPLUS.  THE AUTOMOBILE INSURER SHALL DISTRIBUTE THE MONEY

 5    RECEIVED TO EACH OF ITS INSUREDS ON A UNIFORM BASIS PER INSURED

 6    CAR.  BY JUNE 1, 1998, EACH AUTOMOBILE INSURER SHALL FILE IN

 7    WRITING WITH THE COMMISSIONER THE INSURER'S PLAN TO DISTRIBUTE

 8    THE MONEY.

 9         (2) AS USED IN THIS SECTION:

10         (A) "CAR" MEANS THAT TERM AS USED IN SECTION 3104(7)(D).




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                                                2

 1         (B) "CATASTROPHIC CLAIMS ASSOCIATION" MEANS THE CATASTROPHIC

 2    CLAIMS ASSOCIATION CREATED IN SECTION 3104.




















































   06095'98 *          Final page.                          DKH