September 13, 2005, Introduced by Reps. Condino, Bieda, Lipsey, Tobocman, Clemente, Alma Smith, Dillon, Polidori, Wojno, Zelenko, Accavitti, Gillard, Ball, Kolb, Donigan, Vagnozzi, Plakas, Kathleen Law and Leland and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding section 2476a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2476a. (1) Notwithstanding any other provision of this
act, an insurer issuing professional liability insurance shall not
terminate or refuse to renew or continue a policy for professional
liability insurance unless written notice is furnished to the
insured not less than 90 days prior to the effective date of
termination. The notice of termination shall include all of the
following:
(a) A clear and concise explanation of the reason for the
termination, nonrenewal, or noncontinuation.
(b) If the termination, nonrenewal, or noncontinuation is
based upon concerns related to quality or claims incurred under the
policy, the insurer shall describe, with specificity, the
information upon which the decision is based.
(2) A professional liability insurance policy shall not be
terminated without cause.
(3) Subsections (1) and (2) do not apply where termination,
nonrenewal, or noncontinuation is based upon fraud, intentional
misrepresentation, nonpayment of premium, or loss of applicable
licensure.