AUTOMOBILE CLUBS

Senate Bill 985 as passed by the Senate

Sponsor:  Sen. Joe Hune

House Committee:  Insurance

Senate Committee:  Insurance

Complete to 12-20-18

SUMMARY:

Senate Bill 985 would amend the Insurance Code to stipulate that an automobile club contract is not insurance or the business of insurance and is not subject to the Code.

The bill would define an automobile club as a legal entity that, in exchange for dues, assessments, or other periodic payment, promises to provide to its members or subscribers assistance in matters relating to motor travel or the operation, use, or maintenance of a motor vehicle, such as towing or emergency road service, legal or financial service, theft service, map and touring service, discount service, bail and arrest bond certificate service, or insurance service.

The bill would take effect 90 days after being enacted.

Proposed MCL 500.130

FISCAL IMPACT:

The bill would have no fiscal impact on the state or units of local government.

                                                                                        Legislative Analyst:   Rick Yuille

                                                                                                Fiscal Analyst:   Marcus Coffin

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.