Bill Text: MI HB5740 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Insurance; insurers; disclosure of security breach in annual statement to director; require. Amends sec. 438 of 1956 PA 218 (MCL 500.438).
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2016-06-09 - Bill Electronically Reproduced 06/08/2016 [HB5740 Detail]
Download: Michigan-2015-HB5740-Introduced.html
HOUSE BILL No. 5740
June 8, 2016, Introduced by Reps. Cochran, Moss, Banks, Gay-Dagnogo, Robinson, Plawecki, Hovey-Wright, Dianda, Garrett, Geiss, Pagan, Greig and Wittenberg and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 438 (MCL 500.438), as amended by 1994 PA 227.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
438. (1) Each An insurer, foreign, alien, U.S. branch, or
domestic, transacting business within this state, shall annually,
on or before March 1, prepare under oath and deposit with the
commissioner
director a statement concerning its affairs in a form
and
manner as prescribed by the commissioner. director. The annual
statement
shall must be filed on or before March 1 of the year
following
that covered by the statement. Upon On request and for
good
cause shown, the commissioner director
may grant to any a
company reasonable extensions of the March 1 filing date for
periods not to exceed 30 days. The insurer shall pay the filing fee
prescribed in section 240(1)(b). The annual statement must include
a disclosure of any security breach that requires notice to a
resident in this state under section 12 of the identity theft
protection act, 2004 PA 452, MCL 445.72. As used in this
subsection, "security breach" means that term as defined in section
3 of the identity theft protection act, 2004 PA 452, MCL 445.63.
(2)
The commissioner director shall prescribe the format and
content of statements that are suitable and adaptable to each kind
of
insurer authorized by this act. The commissioner director shall
include
requests for information upon any and all on important
elements of an insurer's business, including any matter, condition,
or requirement regulated by this act. An annual statement filed by
an
insurer under this section shall must be prepared in
accordance
with instructions provided by, and accounting practices and
procedures
designated by, the commissioner.director.
(3)
The commissioner director may address inquiries to any an
insurer, in relation to the insurer's activities or conditions, or
any
matter connected with the insurer's transactions. An The
insurer
so addressed shall promptly reply in writing to each
inquiry
by the commissioner.described
in this subsection.
(4)
Each A report filed with the commissioner pursuant to
director
under this section shall must be
made available to the
public
in compliance with the freedom of information act, Act No.
442
of the Public Acts of 1976, being sections 15.231 to 15.246 of
the
Michigan Compiled Laws.1976
PA 442, MCL 15.231 to 15.246.
(5)
Each An authorized insurer that fails to does not make
or
deposit
the annual statement required by this section, or fails to
does
not reply within 30 days to an inquiry
of the commissioner,
director, is subject to a civil penalty of not less than $1,000.00
or more than $5,000.00, and an additional $50.00 for every day that
the
insurer fails to does not make and deposit the annual statement
or
reply to the inquiry. In addition, each an insurer that fails to
does
not make and deposit an annual
statement, or fails to does
not
make
a satisfactory reply to an inquiry of the commissioner,
director,
concerning the insurer's affairs shall
be is subject to
proceedings under section 436.
(6)
The annual statement of an alien insurer shall must relate
only to the insurer's assets, transactions, and affairs in the
United
States unless the commissioner director
requires otherwise.
(7) As used in this section, "U.S. branch" means that term as
defined in section 431.
