January 24, 2006, Introduced by Senators THOMAS, SCOTT, JACOBS, BRATER, PRUSI, BASHAM, SCHAUER, CLARK-COLEMAN, OLSHOVE, CHERRY, EMERSON, LELAND and CLARKE and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2105 (MCL 500.2105) and by adding section
2111f.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
2105. (1) No A
policy of automobile insurance or home
insurance shall not be offered, bound, made, issued, delivered, or
renewed in this state on and after January 1, 1981, except in
conformity
with this chapter. This chapter shall does
not apply
to policies of automobile insurance or home insurance offered,
bound, made, issued, delivered, or renewed in this state before
January 1, 1981.
(2) This
Except as otherwise provided
in section 2111f, this
chapter shall
does not apply to insurance written on a group,
franchise,
blanket policy, or similar basis which that
offers
home insurance or automobile insurance to all members of the group,
franchise plan, or blanket coverage who are eligible persons.
Sec. 2111f. (1) By not later than 90 days after the effective
date of the amendatory act that added this section, each insurer
shall file rates for automobile insurance that reflect for all
coverages an overall average rate reduction of not less than 20% of
the average rate charged for all coverages by the automobile
insurer on October 1, 2005. The rate reduction or premium for a
specified insured may vary due to discounts, surcharges,
application of rating factors, and coverage selection.
(2) By not later than 90 days after the effective date of the
amendatory act that added this section, each insurer shall file
rates for home insurance that reflect for all coverages an overall
rate reduction of not less than 20% of the average rate charged for
all coverages by the home insurer on October 1, 2005. The rate
reduction or premium for a specified insured may vary due to
discounts, application of rating factors, and coverage selection.
(3) By not sooner than 30 days after the effective date of the
amendatory act that added this section, an insurer may petition the
commissioner for relief from all or part of the percentage set in
subsection (1) or (2). In its petition, an insurer shall
demonstrate such reduction could result in an undue financial
hardship to the insurer.
(4) By not later than 30 days after receipt of a petition
under subsection (3), the commissioner by order shall deny or grant
the insurer's request for regulatory relief if the commissioner
finds a condition exists for which the commissioner may act
pursuant to section 436 or 436a and the commissioner determines
that relief from all or a part of the percentage set in subsection
(1) or (2) would be in the best interests of the public, the
insurer, and the insurer's policyholders.
(5) An insurer aggrieved by the commissioner's order under
subsection (4) may request a hearing pursuant to the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. The
costs associated with a hearing shall be paid for by the insurer.
(6) Nothing in this section prohibits an insurer from reducing
rates by more than the percentage set in subsection (1) or (2).
(7) This section applies to all policies of automobile
insurance or home insurance offered, bound, made, issued,
delivered, or renewed in this state, including automobile or home
insurance written on a group, franchise, blanket policy, or similar
basis.