HOUSE BILL No. 5929


     June 11, 1998, Introduced by Rep. Gubow and referred to the Committee on Insurance.


        A bill to amend 1949 PA 300, entitled

   "Michigan vehicle code,"

   by amending section 531 (MCL 257.531).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 531.  (1)  (a)  Any person in whose name more than 25

 2    motor vehicles are registered may qualify as a self-insurer by

 3    obtaining a certificate of self-insurance issued by the secretary

 4    of state as provided in  paragraph (b) of this section 

 5    SUBSECTION (2).

 6         (2)  (b) The secretary of state may, in his discretion,

 7     upon  UPON the application of  such  a person DESCRIBED IN SUB-

 8    SECTION (1), THE SECRETARY OF STATE MAY issue a certificate of

 9    self-insurance  when he is  IF satisfied that  such  THE person

10    is possessed and will continue to be possessed of THE ability to

11    pay judgments obtained against  such  THE person.


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 1         (3)  (c)  Upon not less than 5 days' notice and a hearing

 2    pursuant to  such  THAT notice, the secretary of state may upon

 3    reasonable grounds cancel a certificate of self-insurance.

 4    Failure to pay any judgment within 30 days after  such judgment

 5     shall have become final shall constitute  THE JUDGMENT BECOMES

 6    FINAL CONSTITUTES a reasonable ground for the cancellation of a

 7    certificate of self-insurance.

 8         (4) PRIOR TO APRIL 1 OF EACH YEAR, A PERSON QUALIFIED AS A

 9    SELF-INSURER UNDER THIS SECTION SHALL PAY TO THE AUTOMOBILE THEFT

10    PREVENTION AUTHORITY CREATED IN SECTION 6103 OF THE INSURANCE

11    CODE OF 1956, 1956 PA 218, MCL 500.6103, AN ASSESSMENT EQUAL TO

12    $1.00 MULTIPLIED BY THE TOTAL NUMBER OF MOTOR VEHICLES

13    SELF-INSURED BY THE PERSON UNDER THIS SECTION IN THIS STATE

14    DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR.  AN ASSESSMENT

15    UNDER THIS SUBSECTION IS NOT REFUNDABLE.



























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