HB-4127, As Passed Senate, June 1, 2004                                     

    SUBSTITUTE FOR

    HOUSE BILL NO. 4127

(As amended December 4, 2003)                                               

(As amended, May 26, 2004)                                                  

                                                                             A bill to amend 1956 PA 218, entitled                                             

"The insurance code of 1956,"                                               

(MCL 500.100 to 500.8302) by adding section 2110b.                          

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 2110b.  (1) An automobile insurance policy and an                      

2   automobile insurer and its employees, agents, and adjusters shall           

3   not unreasonably restrict an insured from using a particular                

4   person, place, shop, or entity for the providing of any                     

5   automobile repair or automobile glass repair or replacement                 

6   service or product covered by the policy.                                   

7       (2) An automobile insurer [                             

8                                                                               

9                                                                               

10             ] shall disclose, prior to or at the time a claim is             

11  filed with the insurer, <<whether the insurer has>> [an agreement] <<with any repair or replacement facility to provide a repair or replacement service or product to an insured>> and                                                     

House Bill No. 4127 as amended May 26, 2004                                 

1   shall inform an insured that he or she is under no obligation to            

2   use <<a>> particular repair or replacement facility.                        

3       (3) The office of financial and insurance services shall                    

4   develop a plan whereby the office informs consumers of their                

5   rights regarding insurance coverage of automobile repairs, that             

6   the insurer is not required to pay more than a reasonable amount            

7   for repairs and parts, and of the insured's ability to report               

8   violations of their rights to the office of financial and                   

9   insurance services through the office's toll-free telephone                 

10  number or website.  The plan shall be developed and submitted to            

11  the senate and house of representatives standing committees on              

12  insurance issues not later than 6 months after the effective date           

13  of this section.