HB-5891, As Passed Senate, December 13, 2012

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5891

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending sections 2112, 2116, 2248, 3109, and 3109a (MCL

500.2112, 500.2116, 500.2248, 500.3109, and 500.3109a), sections

2112 and 2116 as amended by 1980 PA 461.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2112. (1) At least annually, in conjunction with a

renewal notice, a bill, or other notice of payment due issued to a

policyholder in conjunction with an automobile and or home

insurance contracts contract, an insurer shall send to each the

policyholder a written notice of that all of the following

information is available and will be provided to the policyholder

on request:

     (a) A description of the specific rating classifications by

which the rates and premiums for the policy have been determined.

The notice shall be of sufficient detail and clarity so that the

policyholder can reasonably verify the applicability and accuracy

of the rating classifications.

     (b) A general explanation of the extent to which rates or

premiums vary among insureds policyholders on the basis of the

rating classifications used by the insurer.

     (c) Sources and reasonable procedures by which the individual

policyholder can obtain from the insurer additional information

sufficient for the individual policyholder to calculate and confirm

the accuracy of his or her specific premium.

     (d) Relevant information regarding the rights of an insured

the policyholder, under sections 2113 and 2114, to appeal the

application of the insurer's rating plan in determining his or her

premium, to obtain documentation from the insurer regarding the

determination of the rate, to appeal the application of the

insurer's underwriting rules to the person policyholder, to request

an informal conference with the insurer, and to file with the

commissioner a complaint as an aggrieved person.

     (e) A description of all of the insurer's underwriting rules

based upon on insurance eligibility points and a description of all

of the underwriting rules of the insurer's affiliates based upon on

insurance eligibility points.

     (f) A suggestion that the insured policyholder contact his or

her agent to determine if he or she is eligible for insurance from

an affiliate of the insurer or under a different rating plan of the

insurer which that would provide to the insured policyholder

insurance at a more favorable premium.

     (2) In a written notice provided under subsection (1), the

insurer shall provide the policyholder with a telephone number and

an internet address, by either of which the policyholder may

contact the insurer to request the information listed in subsection

(1). On request of the policyholder, the insurer shall provide the

policyholder with the requested information in either a written or

electronic format, as requested by the policyholder.

     Sec. 2116. (1) A duly licensed insurance agent licensed to

represent 1 or more insurers shall, as a condition of licensure, do

all of the following:

     (a) Provide each eligible person seeking automobile insurance

or home insurance the lowest available a premium quotation for the

forms or types of insurance coverages which that are offered by the

insurers represented by the agent and which that are sought by the

eligible person.

     (b) Inform the eligible person of the number of insurers that

he or she represents. If the agent represents additional insurers

from which the eligible person may obtain insurance, the agent

shall may provide additional premium quotations as requested by the

eligible person.

     (c) Not attempt to channel an eligible person away from an

insurer or insurance coverage with the purpose or effect of

avoiding an agent's obligation to submit an application or an

insurer's obligation to accept an eligible person.

     (d) Upon On request, submit an application of the eligible

person for automobile insurance or home insurance to the insurer

selected by the eligible person.

     (e) For automobile insurance only, at least annually, supply,

with the renewal of a policy, to each insured, unless such the

information has been provided by is available from the insurer, all

of the following:

     (i) An explanation of the insurance eligibility point system.

     (ii) A statement that if the insured is an eligible person he

or she may qualify for insurance from more than 1 insurer, and

possibly at a lower rate.

     (iii) A statement that the agent will, upon on request, furnish

to the insured a set of quotations from insurers represented by the

agent from whom the insured may obtain insurance, as required in

this subsection.

     (2) With respect to automobile insurance or home insurance, an

insurer shall not penalize an individual agent by paying less than

normal commissions or normal compensation or salary because of the

expected or actual experience produced by the agent's business or

because of the geographic location of business written by the

agent.

     Sec. 2248. (1) No A policy of insurance against fire, theft,

property damage, collision, and/or or liability in connection with

automobile coverage shall not be issued unless the policy, or an

exact copy thereof, be of the policy, is delivered to the insured.

     (2) For purposes of this section, a personal automobile

insurance policy and endorsements that do not contain personally

identifiable information may be delivered by mailing, delivery, or

posting on the insurer's internet website. If the insurer elects to

post an insurance policy and endorsements on its internet website

in lieu of mailing or delivering them to the named insured, the

insurer shall comply with all of the following conditions:

     (a) The policy and endorsements are easily accessible and

remain easily accessible for as long as the policy is in force.

     (b) After the expiration of the policy, the insurer archives

the policy and endorsements and makes them available on request at

no charge or for a reasonable charge.

     (c) The policy and endorsements are posted in a manner that

enables the insured to print and save the policy and endorsements

using programs or applications that are widely available on the

internet and free to use.

     (d) The insurer provides notice to the named insured with each

declarations page of a method by which an insured may obtain, on

request and without charge, a paper or electronic copy of the

policy or endorsements.

     (e) On each declarations page issued to an insured, the

insurer clearly identifies the exact policy and endorsement forms

purchased by the insured.

     (f) The insurer provides notice, in the manner by which it

customarily communicates with a named insured, of any of the

changes to the forms or endorsements and the insured's right to

obtain, on request and without charge, a paper copy of the forms or

endorsements.

     Sec. 3109. (1) Benefits provided or required to be provided

under the laws of any state or the federal government shall be

subtracted from the personal protection insurance benefits

otherwise payable for the injury under this chapter.

     (2) An injured person is a natural person suffering accidental

bodily injury.

     (3) An insurer providing personal protection insurance

benefits under this chapter may offer, at appropriately reduced

premium rates, a deductible of a specified dollar amount. which

does not exceed $300.00 per accident. This deductible may be

applicable to all or any specified types of personal protection

insurance benefits, but shall apply only to benefits payable to the

person named in the policy, his or her spouse, and any relative of

either domiciled in the same household. Any other deductible

provisions require the prior approval of the commissioner.

     Sec. 3109a. An insurer providing personal protection insurance

benefits shall under this chapter may offer, at appropriately

reduced premium rates, deductibles and exclusions reasonably

related to other health and accident coverage on the insured. The

Any deductibles and exclusions required to be offered by under this

section shall be are subject to prior approval by the commissioner

and shall apply only to benefits payable to the person named in the

policy, the spouse of the insured, and any relative of either

domiciled in the same household.