August 16, 2006, Introduced by Rep. Pavlov and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 3010 (MCL 500.3010), as amended by 2006 PA 208.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3010. (1) Notwithstanding any other provision of this
act, an automobile insurer shall not pay a claim of $2,000.00 or
more for loss or damage caused by fire or explosion to an insured
motor vehicle until a report under subsection (2) has been
submitted and the insurer has received from the insured a copy of
the report.
(2) If an insured motor vehicle suffers loss or damage caused
by fire or explosion, the insured shall submit to the fire or law
enforcement authority designated by the city, village, or township
a report prescribed by the office of financial and insurance
services in conjunction with the bureau of fire services created in
section 1b of the fire prevention code, 1941 PA 207, MCL 29.1b,
that requires information concerning the motor vehicle fire or
explosion.
(3) This section does not apply to accidental fires or
explosions as determined by the insurer or the fire or law
enforcement authority designated by the city, village, or township.
If the insurer or the fire or law enforcement authority designated
by the city, village, or township determines that the fire or
explosion may not be accidental, the insurer or the fire or law
enforcement authority designated by the city, village, or township
shall notify the insured of the requirement for a report under this
section by not later than 30 days after the determination by the
insurer or the fire or law enforcement authority designated by the
city, village, or township.
(4)
This section applies only if the fire or law enforcement
authority
responsible for investigating the fire or explosion is
located
in a city, village, or township described in subsection (8)
and
if the a city, village, or township, pursuant to a resolution
by its governing body, notifies the commissioner in writing of both
of the following:
(a) That the city, village, or township has elected to receive
the reports prepared under subsection (2).
(b) The name and address of the fire or law enforcement
authority designated by the city, village, or township to receive
reports prepared under subsection (2).
(5) The commissioner shall prepare and distribute a list of
all cities, villages, and townships that have elected to apply this
section to all insurance companies transacting automobile insurance
in this state.
(6) A city, village, or township may be added to the list
prepared under subsection (5) by submitting a written request
containing the information required under subsection (4) to the
commissioner. If a written request is received, the commissioner
shall prepare and distribute an amended list indicating the
addition. The addition shall be effective on the date specified by
the commissioner in the amended list. The commissioner shall notify
the city, village, township, and all insurers transacting
automobile insurance in this state of the effective date of an
addition, which shall be not less than 30 days after receipt of the
notice by the insurance company. This section does not apply to any
loss that occurred before the effective date of the addition.
(7) A city, village, or township may request to be deleted
from the list or may cease to apply this section for a period of
not less than 6 months upon not less than 30 days' written notice
to the commissioner. After receipt of a request to be deleted from
the list, the commissioner shall prepare and distribute an
amendment to the list indicating the deletion. The deletion shall
be effective on the date specified by the commissioner in the
amendment. The commissioner shall notify the city, village,
township, and all insurers transacting automobile insurance in this
state of the effective date of a deletion which shall be effective
not less than 30 days after receipt of the notice by the insurance
company. A city, village, or township shall continue to apply this
section to any loss that occurred before the effective date of the
deletion, notwithstanding the deletion.
(8)
A city, village, or township may elect to apply this
section
as provided in subsection (4) and as follows:
(a)
If the city, village, or township is located in a county
with
a population of 425,000 or more.
(b)
If the city, village, or township is located in a county
with
a population of less than 425,000 but the city, village, or
township
has a population of 50,000 or more.
(8) (9)
There is no liability on the part of, and a cause of
action does not arise against, an insurer or an agent or employee
of an insurer for withholding money in the course of complying with
or attempting to comply with this section.