SENATE BILL No. 1544

 

 

September 25, 2008, Introduced by Senators OLSHOVE, THOMAS, ANDERSON, JELINEK, BROWN and JACOBS and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 3101a (MCL 500.3101a), as amended by 1996 PA

 

456.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3101a. (1) An insurer, in conjunction with the issuance

 

of an automobile insurance, policy, as defined in section 3303,

 

shall provide 2 certificates of insurance for each insured vehicle.

 

The insurer shall mark 1 of the certificates as the secretary of

 

state's copy, which copy, except as otherwise provided in

 

subsection (2), shall be filed with the secretary of state by the

 

policyholder upon application for a vehicle registration. The

 

secretary of state shall not maintain the certificate of insurance

 


received under this subsection on file. An insurer shall notify the

 

secretary of state if a policy expires without being renewed or is

 

terminated or if a policyholder cancels his or her automobile

 

insurance policy. The notice of expiration, termination, or

 

cancellation shall contain all of the following information:

 

     (a) The vehicle identification number.

 

     (b) The name and address of the policy holder.

 

     (c) The insurance policy number.

 

     (d) The time and date of expiration, termination, or

 

cancellation.

 

     (2) The secretary of state shall accept as proof of vehicle

 

insurance a transmission, in the format required by the secretary

 

of state, of the insured vehicle's vehicle identification number.

 

Vehicle identification numbers received by the secretary of state

 

under this subsection are confidential and shall not be disclosed

 

to any person except pursuant to an order by order of a court of

 

competent jurisdiction in connection with a claim or fraud

 

investigation or prosecution. The transmission to the secretary of

 

state of a vehicle identification number is proof of insurance to

 

the secretary of state for motor vehicle registration purposes only

 

and is not evidence that a policy of insurance actually exists

 

between an insurer and an individual.

 

     (3) A person who fails to supply information to the secretary

 

of state or who supplies false information to the secretary of

 

state under this section or who issues or uses an altered,

 

fraudulent, or counterfeit certificate of insurance is guilty of a

 

misdemeanor punishable by imprisonment for not more than 1 year ,

 


or a fine of not more than $1,000.00, or both.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 1545                                  

 

          of the 94th Legislature is enacted into law.