November 7, 2007, Introduced by Reps. Leland, Corriveau, Scott, Virgil Smith, Byrnes, Hood, Johnson, Melton, Constan, Young, Lemmons, Farrah, Coulouris, Alma Smith, Polidori, Tobocman, Condino and Dean 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 chapter 3.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
CHAPTER 3
OFFICE OF PUBLIC INSURANCE COUNSEL
Sec. 301. (1) The independent office of public insurance
counsel is created within the office of financial and insurance
services.
(2) The governor with the advice and consent of the senate
shall appoint a public counsel for a term of 4 years. The public
counsel shall serve as executive director of the office of public
insurance counsel.
(3) To be eligible to serve as public counsel for the office
of public insurance counsel a person shall meet all of the
following requirements:
(a) Be a resident of Michigan.
(b) Be admitted to practice law in Michigan.
(c) Demonstrate a strong commitment and involvement in efforts
to safeguard public rights.
(d) Possess the knowledge and experience necessary to practice
effectively in insurance proceedings.
Sec. 303. The office of public insurance counsel may assess
the impact of insurance rates, rules, and forms on insurance
consumers in Michigan and, in its own name, shall act as an
advocate of positions that are most advantageous to a substantial
number of insurance consumers as determined by the public counsel
for the office.
Sec. 305. The office of public insurance counsel may access
any records that are available to any party in a proceeding before
the commissioner and is entitled to discovery of any nonprivileged
matter that is relevant to the subject matter involved in any
proceeding or submission before the commissioner.
Sec. 307. (1) The public counsel shall do all of the
following:
(a) Administer, enforce, and carry out all duties under this
chapter.
(b) Prepare and submit to the legislature a budget for the
office of public insurance counsel.
(c) Employ professional, technical, and other employees as are
necessary to carry out this chapter.
(d) Submit to the commissioner for adoption a consumer bill of
rights appropriate to each personal line of insurance regulated by
the commissioner to be distributed by insurers upon the issuance of
a policy to each policyholder under rules adopted by the
commissioner.
(2) The public counsel shall not intervene in hearings before
the commissioner that relate to approval or consideration of
individual charters, licenses, acquisitions, mergers, or
examinations, proceedings concerning the solvency of individual
insurers after a receiver is appointed, or other matters affecting
individual insurer or agent licenses.
Sec. 309. The public counsel may do any of the following:
(a) Appear or intervene as a matter of right before the
commissioner as a party or otherwise on behalf of insurance
consumers as a class in any of the following:
(i) Matters involving rates, rules, and forms affecting
property and casualty insurance.
(ii) Matters involving rates, rules, and forms affecting title
insurance.
(iii) Matters involving rules affecting life, health, and
accident insurance.
(iv) Matters involving rates, rules, and forms affecting credit
life and credit accident and health insurance.
(v) Matters involving rates, rules, and forms affecting all
other lines of insurance for which the commissioner promulgates,
sets, or approves rates, rules, or forms.
(vi) Matters involving withdrawal of approval of policy forms
if the public counsel determines that these forms do not comply
with this act or a valid rule or are otherwise contrary to law.
(b) Initiate or intervene as a matter of right or otherwise
appear in a judicial proceeding involving or arising out of any
action taken by an administrative agency in a proceeding in which
the public counsel appeared under the authority granted by this
chapter.
(c) Recommend legislation to the legislature that, in the
judgment of the public counsel, would affect positively the
interests of insurance consumers.
(d) Appear or intervene as a matter of right as a party or
otherwise on behalf of insurance consumers as a class in all
proceedings in which the public counsel determines that insurance
consumers need representation, except that the public counsel may
not intervene in any enforcement proceeding brought by the attorney
general.
Sec. 311. The public counsel shall not, for a period of 2
years after the date he or she ceases to be public counsel,
represent any person or receive compensation for services rendered
on behalf of any person in a proceeding before the commissioner.