Bill Text: MI HB4079 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Insurance: property and casualty; insurance rates; eliminate file and use for automobile and home insurance. Amends secs. 2106 & 2108 of 1956 PA 218 (MCL 500.2106 & 500.2108).

Spectrum: Slight Partisan Bill (Republican 5-3)

Status: (Introduced - Dead) 2019-01-24 - Bill Electronically Reproduced 01/24/2019 [HB4079 Detail]

Download: Michigan-2019-HB4079-Introduced.html

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HOUSE BILL No. 4079

 

 

January 24, 2019, Introduced by Reps. Webber, Crawford, Paquette, Griffin, Ellison, Cynthia Johnson, Robinson and Yaroch and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 2106 and 2108 (MCL 500.2106 and 500.2108),

 

section 2108 as amended by 2015 PA 141.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2106. (1) Except as specifically provided in this

 

chapter, the provisions of chapter 24 and chapter 26 shall do not

 

apply to automobile insurance and home insurance.

 

     (2) An insurer may shall file and use rates for automobile

 

insurance or home insurance as soon as those rates are filed.in

 

accordance with chapter 24.

 

     (3) To the extent that other provisions of this code act are

 

inconsistent with the provisions of this chapter, this chapter

shall govern governs with respect to automobile insurance and home

 

insurance.

 

     Sec. 2108. (1) On the effective date of An insurer shall file

 

a manual of classification, manual of rules and rates, rating plan,

 

or modification of a manual of classification, manual of rules and

 

rates, or rating plan that an the insurer proposes to use for

 

automobile insurance or home insurance , the insurer shall file the

 

manual or plan with the director. in accordance with chapter 24.

 

Each filing under this subsection must state the character and

 

extent of the coverage contemplated. An insurer that is subject to

 

this chapter and that maintains rates in any part of this state

 

shall at all times maintain rates in effect for all eligible

 

persons meeting the underwriting criteria of the insurer.

 

     (2) An insurer may satisfy its obligation to make filings

 

under subsection (1) by becoming a member of, or a subscriber to, a

 

rating organization licensed under chapter 24 or chapter 26 that

 

makes the filings, and by filing with the director a copy of its

 

authorization of the rating organization to make the filings on its

 

behalf. This chapter does not require an insurer to become a member

 

of or a subscriber to a rating organization. An insurer may file

 

and use deviations from filings made on its behalf. The deviations

 

are subject to this chapter.

 

     (3) A filing under this section must be accompanied by a

 

certification by or on behalf of the insurer that, to the best of

 

the insurer's information and belief, the filing conforms to the

 

requirements of this chapter.

 

     (4) A filing under this section must include information that

supports the filing with respect to the requirements of section

 

2109. The information may include 1 or more of the following:

 

     (a) The experience or judgment of the insurer or rating

 

organization making the filing.

 

     (b) The interpretation of the insurer or rating organization

 

of any statistical data it relies on.

 

     (c) The experience of other insurers or rating organizations.

 

     (d) Any other relevant information.

 

     (5) Except as otherwise provided in this subsection, the

 

department shall make a filing under this section and any

 

accompanying information open to public inspection on filing. An

 

insurer or a rating organization filing on the insurer's behalf may

 

designate information included in the filing or any accompanying

 

information as a trade secret. The insurer or the rating

 

organization filing on behalf of the insurer shall demonstrate to

 

the director that the designated information is a trade secret. If

 

the director determines that the information is a trade secret, the

 

information is not subject to public inspection and is exempt from

 

the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

 

As used in this subsection, "trade secret" means that term as

 

defined in section 2 of the uniform trade secrets act, 1998 PA 448,

 

MCL 445.1902. However, trade secret does not include filings and

 

information accompanying filings under this section that were

 

subject to public inspection before the effective date of the

 

amendatory act that added this sentence.January 11, 2016.

 

     (6) An insurer shall not make, issue, or renew a contract or

 

policy except in accordance with filings that are in effect for the

insurer under this chapter.

 

     Enacting section 1. Sections 2106 and 2108 of the insurance

 

code of 1956, 1956 PA 218, MCL 500.2106 and 500.2108, as amended by

 

this amendatory act, apply to insurance policies issued or renewed

 

on or after 90 days after the effective date of this amendatory

 

act.