January 24, 2007, Introduced by Senator SCOTT and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding section 255.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 255. (1) The make insurance affordable and accessible
(MIAA) task force is created within the office of financial and
insurance services.
(2) The MIAA task force shall consist of the commissioner of
the office of financial and insurance services, 1 member of the
senate appointed by the senate majority leader, 1 member of the
senate appointed by the senate minority leader, 1 member of the
house of representatives appointed by the speaker of the house of
representatives, 1 member of the house of representatives appointed
by the minority leader of the house of representatives, and the
following 6 members, appointed by the governor:
(a) Three members representing the general public, at least 1
of whom shall reside in a county with a population of 900,000 or
more.
(b) One member representing automobile insurers with 15% or
more of the automobile insurance market in this state.
(c) One member representing automobile insurers with less than
15% but more than 5% of the automobile insurance market in this
state.
(d) One member representing automobile insurers with 5% or
less of the automobile insurance market in this state.
(3) The members appointed to the MIAA task force shall be
appointed within 14 days after the effective date of this section.
(4) If a vacancy occurs on the MIAA task force, an appointment
for the unexpired term shall be made in the same manner as the
original appointment.
(5) The governor may remove a member of the MIAA task force
for incompetency, dereliction of duty, malfeasance, misfeasance, or
nonfeasance in office, or any other good cause.
(6) The first meeting of the MIAA task force shall be called
not later than 24 days after the effective date of this section. At
the first meeting, the members of the MIAA task force shall elect
from among its members a chairperson and other officers as they
consider necessary or appropriate. After the first meeting, the
MIAA task force shall meet at least monthly, or more frequently at
the call of the chairperson or if requested by 6 or more members.
(7) A majority of the members of the MIAA task force
constitute a quorum for the transaction of business at a meeting of
the MIAA task force. A majority of the members present and serving
are required for official action of the MIAA task force.
(8) The business that the MIAA task force may perform shall be
conducted at a public meeting of the MIAA task force held in
compliance with the open meetings act, 1976 PA 267, MCL 15.261 to
15.275.
(9) A writing prepared, owned, used, in the possession of, or
retained by the MIAA task force in the performance of an official
function is subject to the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(10) Members of the MIAA task force shall serve without
compensation. However, members of the MIAA task force may be
reimbursed for their actual and necessary expenses incurred in the
performance of their official duties as members of the MIAA task
force.
(11) The MIAA task force shall examine the affordability and
availability of automobile insurance in all areas of the state. In
making this examination, the MIAA task force shall use the
information received from the office of financial and insurance
services most recent data call and shall measure average automobile
insurance premiums relative to average family income in each county
in the state.
(12) The MIAA task force shall examine ways to increase the
affordability and availability of automobile insurance in all areas
of the state. In making this examination, the MIAA task force shall
examine and report on at least all of the following:
(a) How automobile insurance is marketed in the state and the
availability of all automobile insurance in all markets of the
state.
(b) How automobile insurance is priced in the state,
including, but not limited to, all of the following:
(i) Use of territorial rating.
(ii) Use of credit scoring and other premium discounts.
(iii) Use of driving records and other classification factors.
(c) Automobile insurance loss ratios and profit margins.
(d) Average cost of claims.
(e) Cost of mandatory benefits.
(f) Other methods to reduce automobile insurance premiums,
including, but not limited to, group pooling and insurance
reciprocal exchanges.
(13) The MIAA task force shall report to the senate and house
of representatives standing committees on insurance issues on the
examinations conducted pursuant to this section and shall make
findings and recommendations based on those examinations by not
later than 1 year after the effective date of this section.