HB-6098, As Passed Senate, December 13, 2006

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 6098

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending section 1915 (MCL 500.1915), as added by 1980 PA 341.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1915. (1) A licensee may not charge, in addition to the

premium charged by an unauthorized insurer, a fee to cover the

costs incurred in the placement of the indemnity which exceeds

$25.00  $50.00, unless all of the following conditions are met:

     (a) The fee in excess of  $25.00  $50.00 is  approved by rule

of the commissioner  filed with the commissioner and not

disapproved by the commissioner within 30 days of the date it is

filed with the commissioner.

     (b) The fee exceeds  $25.00  $50.00 only to the extent that

the actual additional costs incurred for services performed by

persons or entities unrelated to the licensee exceed that amount.

     (2) A fee charged pursuant to subsection (1) shall not be

excessive or discriminatory. The licensee shall maintain complete

documentation of all fees charged pursuant to subsection (1)(b).

Those fees shall not be included as a part of the policy premium in

the computation of premium taxes.

     (3) Assessments as provided in section 1943 shall not be

subject to this section.

     (3) The $50.00 fee prescribed in subsection (1) shall be

adjusted June 1, 2008 and annually thereafter to reflect the

percentage of change in the consumer price index.

     (4) As used in this section, "consumer price index" means the

consumer price index for all urban consumers in the United States

city average for all items, as most recently reported by the United

States department of labor, bureau of labor statistics, and as

certified by the commissioner in an administrative bulletin.