Bill Text: MI HB4354 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Insurance; insurers; confidentiality of certain required filings by insurers; provide for. Amends secs. 2021, 2108, 2112, 2406, 2458, 2606 & 2652 of 1956 PA 218 (MCL 500.2021 et seq.).
Spectrum: Bipartisan Bill
Status: (Passed) 2015-10-14 - Assigned Pa 141'15 With Immediate Effect [HB4354 Detail]
Download: Michigan-2015-HB4354-Introduced.html
HOUSE BILL No. 4354
March 18, 2015, Introduced by Reps. Webber, Franz, Lyons, Cochran, Banks, Sheppard, Kosowski and Derek Miller and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 2108 and 2406 (MCL 500.2108 and 500.2406),
section 2406 as amended by 1993 PA 200.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2108. (1) On the effective date thereof,
each insurer
shall
file with the commissioner every of
a manual of
classification,
every manual of rules and rates, every rating plan,
and
every or modification of a manual of classification, manual
of
rules
and rates, or a rating plan which it that an insurer proposes
to
use for automobile insurance and or home insurance, the insurer
shall
file the manual or plan with the director.
Each filing shall
under this subsection must state the character and extent of the
coverage
contemplated. Each An insurer that
is subject to this
chapter
who 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 which
that makes
those the filings, and by filing with the commissioner
director a copy of its authorization of the rating organization to
make those the filings on its behalf. Nothing
contained in this
This chapter
shall be construed as requiring any does not require
an insurer
to become a member of or a subscriber to any a rating
organization. Insurers An insurer may file and use deviations from
filings made on their its behalf. ,
which The deviations shall be
are subject
to the provisions of this chapter.
(3) Each A filing shall under this section must be accompanied
by a certification by or on behalf of the insurer that, to the best
of its the insurer's information
and belief, the filing conforms to
the requirements of this chapter.
(4) Each A filing shall 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 upon.on.
(c) The experience of other insurers or rating organizations.
(d) Any other relevant information.
(5) A Except as otherwise provided in this subsection, a
filing under
this section and any accompanying
information shall be
open to public inspection upon filing.is a public record as
provided in the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246. An insurer or a rating organization filing on the
insurer's behalf may designate the filing or any accompanying
information as a trade secret. If the director determines that the
filing or any accompanying information is a trade secret, the
filing or any accompanying information 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.
(6) An insurer shall not make, issue, or renew a contract or
policy
except in accordance with filings which that are in effect
for
the insurer pursuant to under
this chapter.
Sec. 2406. (1) Except for worker's compensation insurance,
every an
insurer shall file with the commissioner
every director a
manual of classification, every manual of
rules and rates, every
rating plan, and every or modification
of any of the foregoing a
manual of classification, manual of rules and rates, or rating plan
that it the insurer proposes to use.
Every such Each filing shall
under this subsection must state the proposed effective date
thereof of
the filing and shall must indicate
the character and
extent of the coverage contemplated. If a filing is not accompanied
by the information upon on which
the insurer supports the filing,
and the commissioner director does
not have sufficient information
to determine whether if the
filing meets the requirements of this
chapter, the commissioner director shall
within 10 days of the
filing give written notice to the insurer to furnish the
information upon which it that supports
the filing. The information
furnished in support of a filing may include the experience or
judgment of the insurer or rating organization making the filing,
its interpretation of any statistical data it relies
upon, on, the
experience of other insurers or rating organizations, or any other
relevant factors. A filing and any supporting
information shall be
open to public inspection after the filing becomes
effective.
(2) Except for worker's compensation insurance, an insurer may
satisfy its obligation to make such filings
by becoming a member
of, or a subscriber to, a licensed rating organization that makes
such filings,
and by filing with the commissioner director a copy
of its authorization of the rating organization to
make such
filings on its behalf. Nothing contained in this This chapter
shall
be construed as requiring any does not require an insurer to become
a member of or a subscriber to any a rating
organization.
(3) For worker's compensation insurance in this state, the
insurer shall file with the commissioner director all
rates and
rating systems. Every insurer that insures
worker's compensation in
this state on the effective date of this subsection
shall file the
rates not later than the effective date of this
subsection.
(4) Except as provided in subsection (3) and
as otherwise
provided in this subsection, the The rates
and rating systems for
worker's compensation insurance shall must be
filed not later than
the date the rates and rating systems are to be
effective. However,
if the insurer providing worker's compensation
insurance is
controlled by a nonprofit health care corporation
formed pursuant
to the nonprofit health care corporation reform act,
Act No. 350 of
the Public Acts of 1980, being sections 550.1101 to
550.1704 of the
Michigan Compiled Laws, the rates and rating systems
that it
proposes to use shall be filed with the commissioner
not less than
45 days before the effective date of the filing.
These filings
shall be considered to meet A filing under this subsection meets
the requirements of this chapter unless and until
the commissioner
director disapproves
a filing pursuant to under
section 2418 or
2420.
(5) Each A filing under subsections
(3) and (4) shall must be
accompanied by a certification by the insurer that, to the best of
its the
insurer's information and belief, the
filing conforms to
the requirements of this chapter.
(6) Except as otherwise provided in this subsection, a filing
under this section and any supporting information is a public
record as provided in the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246. An insurer or a rating organization filing on
the insurer's behalf may designate the filing or any accompanying
information as a trade secret. If the director determines that the
filing or any accompanying information is a trade secret, the
filing or any accompanying information 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.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
