SENATE BILL NO. 700


   September 21, 1999, Introduced by Senator DINGELL and referred 
        to the Committee on Financial Services.



        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 3101a (MCL 500.3101a), as amended by 1996 PA

   456.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 3101a.  (1) An insurer  , in conjunction with the
             issu-

 2     ance of  THAT ISSUES an automobile insurance
                       policy, as defined

 3    in section 3303, shall provide 2 certificates of insurance for

 4    each insured vehicle.  The insurer shall mark 1 of the certifi-

 5    cates as the secretary of state's copy, which copy, except as

 6    otherwise provided in subsection (2), shall be filed with the

 7    secretary of state by the policyholder upon application for a

 8    vehicle registration.  The secretary of state shall  not
             

 9    maintain the certificate of insurance received under this

10    subsection on file.  AN INSURER SHALL NOTIFY THE SECRETARY OF


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 1    STATE IF A POLICY EXPIRES WITHOUT BEING RENEWED OR IS TERMINATED

 2    OR IF A POLICYHOLDER CANCELS HIS OR HER AUTOMOBILE INSURANCE

 3    POLICY.  THE NOTICE OF EXPIRATION, TERMINATION, OR CANCELLATION

 4    SHALL CONTAIN ALL OF THE FOLLOWING INFORMATION:

 5         (A) THE VEHICLE IDENTIFICATION NUMBER.

 6         (B) THE NAME AND ADDRESS OF THE INSURER.

 7         (C) THE INSURANCE POLICY NUMBER.

 8         (D) THE TIME AND DATE OF EXPIRATION, TERMINATION, OR

 9    CANCELLATION.

10         (2) The secretary of state shall accept as proof of vehicle

11    insurance a transmission, in the format required by the secretary

12    of state, of the insured vehicle's vehicle identification

13    number.  Vehicle identification numbers received by the secretary

14    of state under this subsection are confidential and shall not be

15    disclosed to any person except  pursuant to an order
              by ORDER OF

16    a court of competent jurisdiction in connection with a claim or

17    fraud investigation or prosecution.  The transmission to the sec-

18    retary of state of a vehicle identification number is proof of

19    insurance to the secretary of state for motor vehicle registra-

20    tion purposes only and is not evidence that a policy of insurance

21    actually exists between an insurer and an individual.

22         (3) A person who FAILS TO SUPPLY INFORMATION TO THE SECRE-

23    TARY OF STATE OR WHO supplies false information to the secretary

24    of state under this section or who issues or uses an altered,

25    fraudulent, or counterfeit certificate of insurance is guilty of

26    a misdemeanor punishable by imprisonment for not more than 1

27    year, or a fine of not more than $1,000.00, or both.



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 1         Enacting section 1.  This amendatory act does not take

 2    effect unless Senate Bill No. 701

 3                           of the 90th Legislature is enacted into

 4    law.
















































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