HOUSE BILL No. 5528

 

May 6, 2014, Introduced by Reps. Stallworth, Hobbs, Rutledge, LaVoy, Slavens, Phelps, Faris, Lipton, Darany and Brown 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 section 2111f.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2111f. Notwithstanding anything in this act to the

 

contrary, if an insurer that writes automobile insurance policies

 

to which this chapter applies pays less than 80% of the money it

 

collects as premiums for the policies in a calendar year to pay

 

claims made under the policies in the year, the insurer shall

 

refund the difference between the amount actually paid for claims

 

and the amount that would have equaled 80% to the holders of the

 

policies for the year on a pro rata basis.