Bill Text: MI HB5630 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Insurance; no-fault; notification of proposed rate increases; require. Amends sec. 2112 of 1956 PA 218 (MCL 500.2112) & adds sec. 2107b. TIE BAR WITH: HB 5627'09, HB 5628'09, HB 5629'09
Spectrum: Partisan Bill (Democrat 22-0)
Status: (Introduced - Dead) 2009-12-03 - Referred To Second Reading [HB5630 Detail]
Download: Michigan-2009-HB5630-Introduced.html
HOUSE BILL No. 5630
December 1, 2009, Introduced by Reps. Young, Liss, Haugh, Gregory, Kandrevas, Segal, Switalski, Constan, Huckleberry, Slavens, Geiss, Tlaib, Robert Jones, Durhal, Cushingberry, Womack, Nathan, Lemmons, Lisa Brown, Roberts, Gonzales and Lipton and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2112 (MCL 500.2112), as amended by 1980 PA 461,
and by adding section 2107b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2107b. (1) At the time of a rate filing for automobile
insurance, the commissioner shall prominently post the rate filing
information in plain language on the office of financial and
insurance regulation website.
(2) Notwithstanding any other provision of this act, an
automobile insurer shall not increase rates for automobile
insurance unless written notice is given to insureds of the rate
increase filing, not less than 60 days before the proposed
effective date of the new rates, stating in plain language the
amount of the increase and the insured's ability to request a
public hearing and provide written comments to the commissioner
concerning the rate increase.
(3) A person or organization aggrieved with respect to any
rate filing may request the commissioner to conduct a public
hearing to provide input regarding the rate filing. The
commissioner may grant a request for a public hearing and may
designate 1 or more persons to conduct the public hearing if the
commissioner considers a public hearing necessary and appropriate
for fact-finding or information gathering before making decisions,
policies, and determinations allowable or required by law in the
course of carrying out the commissioner's duties. In examining the
rate filing, the commissioner shall take into account any relevant
input received as a result of a public hearing under this section.
Sec. 2112. At least annually, in conjunction with a renewal
notice, a bill, or other notice of payment due issued to a
policyholder in conjunction with automobile and home insurance
contracts, an insurer shall send to each policyholder a written
notice in plain language of all of the following:
(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 on the basis of the rating
classifications used by the insurer.
(c) Sources and reasonable procedures by which the individual
can obtain from the insurer additional information sufficient for
the individual to calculate and confirm the accuracy of his or her
specific premium.
(d) Relevant information regarding the rights of an insured,
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, 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 insurance eligibility points and a description of all of
the underwriting rules of the insurer's affiliates based upon
insurance eligibility points.
(f) A suggestion that the insured 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 would provide to the insured insurance at a more favorable
premium.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 5629(request no.
01660'09 **).
(b) Senate Bill No.____ or House Bill No. 5627(request no.
01661'09 **).
(c) Senate Bill No.____ or House Bill No. 5628(request no.
01666'09 ****).
