May 18, 2006, Introduced by Reps. Hune, Gaffney, Mortimer and Farrah 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 1241.
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
rendering services 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
fee under this section for the following:
(a) Services performed with the initial issuance of a policy
of insurance.
(b) Services performed for the first time for a person for
documentation related to a policy of insurance.