SENATE BILL No. 332

March 15, 2001, 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,"

(MCL 500.100 to 500.8302) by adding section 3133.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 3133. (1) AN AUTOMOBILE INSURANCE POLICY AND AN AUTO-

2 MOBILE INSURER AND ITS EMPLOYEES, AGENTS, AND ADJUSTERS SHALL NOT

3 DO EITHER OF THE FOLLOWING:

4 (A) INTIMIDATE, INDUCE, RECOMMEND, SUGGEST, OR REQUIRE AN

5 INSURED TO USE A PARTICULAR PERSON, PLACE, SHOP, OR ENTITY FOR

6 THE PROVIDING OF ANY AUTOMOBILE REPAIR SERVICE OR PRODUCT COVERED

7 BY THE POLICY.

8 (B) INTIMIDATE, INDUCE, RECOMMEND, SUGGEST, OR REQUIRE AN

9 INSURED TO USE A PARTICULAR BRAND, TYPE, KIND, AGE, OR CONDITION

10 OF PARTS FOR A PART COVERED BY THE POLICY.

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2

1 (2) AN AUTOMOBILE INSURER SHALL FULLY AND PROMPTLY PAY FOR

2 THE COST OF ANY COVERED AUTOMOBILE REPAIR SERVICE OR PRODUCT LESS

3 ANY APPLICABLE DEDUCTIBLE AT NOT LESS THAN THE PREVAILING OR GEN-

4 ERALLY FOUND MARKET PRICE IN THE AREA FOR SIMILARLY SITUATED

5 AUTOMOBILE REPAIR SERVICES OR PRODUCTS. THE PREVAILING OR GENER-

6 ALLY FOUND MARKET PRICE IN THE AREA SHALL NOT BE LIMITED TO THE

7 LOWEST PRICE AND SHALL NOT TAKE INTO CONSIDERATION ANY SPECIAL

8 PRICE OR SERVICE ARRANGEMENT OFFERED BY THE PARTICULAR PERSON,

9 PLACE, SHOP, OR ENTITY. AN AUTOMOBILE INSURER SHALL NOT FAIL TO

10 FULLY AND PROMPTLY PAY FOR THE COST OF ANY COVERED AUTOMOBILE

11 REPAIR SERVICE OR PRODUCT BECAUSE OF AN INSURED'S SELECTION OF A

12 PARTICULAR PERSON, PLACE, SHOP, OR ENTITY TO PROVIDE THE COVERED

13 AUTOMOBILE REPAIR SERVICE OR PRODUCT.

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