September 11, 2008, Introduced by Rep. Ward and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2110b (MCL 500.2110b), as added by 2004 PA 190.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2110b. (1) An automobile insurance policy and an
automobile insurer and its employees, agents, and adjusters shall
not unreasonably restrict an insured from using or delay appraisal
for an insured to use a particular person, place, shop, or entity
for the providing of any automobile repair or automobile glass
repair or replacement service or product covered by the policy.
(2) An automobile insurer shall disclose, prior to or at the
time a claim is filed with the insurer, whether the insurer has an
agreement with any repair or replacement facility to provide a
repair or replacement service or product to an insured and shall
inform an insured that he or she is under no obligation to use a
particular repair or replacement facility.
(3)
The office of financial and insurance services regulation
shall develop a plan whereby the office informs consumers of their
rights regarding insurance coverage of automobile repairs, that the
insurer is not required to pay more than a reasonable amount for
repairs and parts, and of the insured's and the automobile repair
and automobile glass repair or replacement service's or
businesses's
ability to report violations of their
rights this
section
to the office of financial and
insurance services
regulation through the office's toll-free telephone number or
website. The plan shall be developed and submitted to the senate
and house of representatives standing committees on insurance
issues not later than 6 months after the effective date of this
section.