HB-6098, As Passed House, August 30, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 6098

(As amended August 30, 2006)

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

(MCL 500.100 to 500.8302) by adding section 1241; and to repeal

acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1241. (1) Except as otherwise provided in subsection (2),

an insurance producer may charge an administrative fee for

[providing multiple copies of the same document] associated with a policy

 of insurance if all of

the following are met:

     (a) The amount charged is reasonably related to recouping the

administrative overhead associated with providing the service.

     (b) The insurance producer provides a schedule of the

administrative fees upon request.

     (2) An insurance producer shall not charge an administrative

House Bill No. 6098 (H-1) as amended August 30, 2006

fee [for services performed with the initial issuance of a policy of

insurance.

]

     (3) Notwithstanding subsections (1) and (2), an insurance

producer may charge an administrative fee in connection with a

transaction of surplus lines insurance in such amount as the

insurance producer considers appropriate.

Enacting section 1. Section 1915 of the insurance code of

1956, 1956 PA 218, MCL 500.1915, is repealed.