ELIMINATE INS. RECEIVERSHIP REPORT - H.B. 4819: FLOOR ANALYSIS
House Bill 4819 (as reported without amendment)
Sponsor: Representative Larry Julian
House Committee: Insurance and Financial Services
Senate Committee: Financial Services
CONTENT
The bill would amend the Insurance Code to eliminate the requirement that the Commissioner of the Office of Financial and Insurance Services (OFIS) provide a report to the Legislature on receivership activities and insurer liquidations.
Currently, the Code provides that all fees added by Public Act 228 of 1994 do not apply on and after January 1, 1996, unless by September 1 of each year, the Commissioner submits a report to the Senate and House of Representatives standing committees on insurance issues and Appropriations regulatory subcommittees, on all receivership activities of the Commissioner and the Insurance Bureau (now within the OFIS) pertaining to the liquidation of insolvent insurers for the immediately preceding calendar year. The bill would delete this provision, as well as provisions detailing what the report must include.
The bill also would repeal a section containing similar provisions pertaining to the Commissioner report on insurance issues and receivership activities in Chapter 81 (Supervision, Rehabilitation, and Liquidation) of the Insurance Code (MCL 500.8160).
MCL 500.224 - Legislative Analyst: N. Nagata
FISCAL IMPACT
The bill would eliminate the receivership report which, according to the Department, would result in savings of restricted revenue due to the reduced administrative responsibilities. These savings could result in a reduced assessment on the insurance industry.
Date Completed: 10-4-01 - Fiscal Analyst: M. TyszkiewiczFloor\hb4819 - Bill Analysis @ http://www.senate.state.mi.us/sfa
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.