HB-5558, As Passed House, April 15, 2008
December 12, 2007, Introduced by Reps. Jackson, Polidori, Virgil Smith, Scott, Johnson and Condino and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2114 (MCL 500.2114).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2114. (1) A person or organization aggrieved with respect
to
any filing which that is in effect and which affects the person
or organization may make written application to the commissioner
for a hearing on the filing. However, the insurer or rating
organization
which that made the filing shall is not
be authorized
to proceed under this subsection. The application shall specify the
grounds to be relied upon by the applicant. If the commissioner
finds that the application is made in good faith, that the
applicant would be so aggrieved if the grounds specified are
established, or that the grounds specified otherwise justify
holding a hearing, the commissioner, not more than 30 days after
receipt of the application, shall hold a hearing in accordance with
Act
No. 306 of the Public Acts of 1969, as amended the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, upon not less than 10 days' written notice to the
applicant,
the insurer, and the rating organization which that made
the filing.
(2) If after hearing initiated under subsection (1) or upon
the
commissioner's own motion pursuant to Act No. 306 of the Public
Acts
of 1969, as amended the
administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328, the commissioner finds that a
filing does not meet the requirements of sections 2109 and 2111,
the commissioner shall issue an order stating the specific reasons
for that finding. The order shall state when, within a reasonable
time after issuance of the order, the filing shall be considered no
longer effective. If the commissioner disapproves the filing as not
being in compliance with section 2109 because rates are excessive
or unfairly discriminatory, he or she may order a refund of the
premium to be made to affected policyholders, if the amount is
substantial and equals or exceeds the cost of making the refund. A
copy of the order shall be sent to the applicant, if any, and to
each
insurer and rating organization subject to the order. The
Except for an adjustment ordered under this section, the order
shall not affect a contract or policy made or issued before the
date the filing becomes ineffective, as indicated in the
commissioner's order.