Bill Text: MI HB5859 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Insurance; no-fault; policy renewal notice; require to be delivered to insured 30 days before expiration, and include rate revisions. Amends sec. 2112 of 1956 PA 218 (MCL 500.2112).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-04-25 - Bill Electronically Reproduced 04/24/2018 [HB5859 Detail]

Download: Michigan-2017-HB5859-Introduced.html

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HOUSE BILL No. 5859

 

 

April 24, 2018, Introduced by Reps. McCready, LaGrand, Iden, Bellino, Graves, Lilly, Runestad, Lucido, Cochran, Garcia, Afendoulis, Calley, Howrylak and VanderWall 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 2015 PA 141.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2112. (1) Subject to subsection (3), (4), at least

 

annually, in conjunction with a renewal notice, a bill, or other

 

notice of payment due issued to a policyholder in conjunction with

 

an automobile or home insurance contract, an insurer shall send to

 

the policyholder a written notice that all of the following

 

information is available and will be provided to the policyholder

 

on request:

 

     (a) A description of the specific rating classifications by

 

which the rates and premiums for the policy have been determined.

 

The notice must 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 policyholders on the basis of the rating

 

classifications used by the insurer.

 

     (c) Sources and reasonable procedures by which the

 

policyholder can obtain from the insurer additional information

 

sufficient for the policyholder to calculate and confirm the

 

accuracy of his or her specific premium.

 

     (d) Relevant information regarding the rights of the

 

policyholder, 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 policyholder, to request an

 

informal conference with the insurer, and to file with the director

 

a complaint as an aggrieved person.

 

     (e) A description of all of the insurer's underwriting rules

 

based on insurance eligibility points and a description of all of

 

the underwriting rules of the insurer's affiliates based on

 

insurance eligibility points.

 

     (f) A suggestion that the policyholder 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 that would provide to the policyholder insurance at a more

 

favorable premium.

 

     (2) In a written notice provided under subsection (1), the

insurer shall provide the policyholder with a telephone number and

 

an Internet address, by either of which the policyholder may

 

contact the insurer to request the information listed in subsection

 

(1). On request of the policyholder, the insurer shall provide the

 

policyholder with the requested information in either a written or

 

electronic format, as requested by the policyholder.

 

     (3) Not more than 30 days before the expiration of an

 

automobile insurance or home insurance policy that the insurer is

 

offering to renew, the insurer shall disclose to the policyholder

 

in writing whether the renewal is being offered for an increased or

 

decreased premium from the amount paid for the preceding term or

 

whether there is no change in the premium. A disclosure under this

 

subsection may be combined with a notice under subsection (1). If

 

there is a change in the premium, the insurer shall disclose all of

 

the following:

 

     (a) The amount of the previous premium.

 

     (b) The amount of the premium for the renewal.

 

     (c) The difference between the amounts disclosed under

 

subdivisions (a) and (b).

 

     (d) An explanation of the reasons for the change.

 

     (4) (3) An insurer is not required to provide information to

 

an insured under this section that is a trade secret as determined

 

by the director under section 2108(5) or 2406(6).

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.