Bill Text: MI SB0306 | 2011-2012 | 96th Legislature | Engrossed

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Bill Title: Insurance; no-fault; code of conduct for certain automobile glass repair or replacement facilities; require. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2110c.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2012-01-26 - Referred To Committee On Insurance [SB0306 Detail]

Download: Michigan-2011-SB0306-Engrossed.html

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SB-0306, As Passed Senate, January 26, 2012

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 306

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

(MCL 500.100 to 500.8302) by adding section 2110c.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2110c. (1) As used in this section:

 

     (a) "Related to or affiliated with" means that the facility is

 

related to or affiliated with the third party biller by stock

 

ownership, license agreement, or direct family ownership.

 

     (b) "Third party biller" means a person that meets all of the

 

following:

 

     (i) Processes, pays, administers, or monitors the payment of

 

automobile glass claims on behalf, directly or indirectly, of an

 

automobile insurer with a certificate of authority in this state.

 

     (ii) Is not an automobile insurer.

 

     (iii) Is not a person who holds a dealer license as that term is

 

defined in section 11b of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.11b.

 

     (2) A third party biller shall not provide automobile glass

 

repair or replacement services for an insurer unless the third

 

party biller adopts and follows, when processing, paying,

 

administering, or monitoring an automobile glass repair or

 

replacement service for the automobile insurer, a code of conduct

 

that complies with all of the following:

 

     (a) If an insured states a preference for an automobile glass

 

repair or replacement facility and that facility is a network

 

facility for the third party biller, no other repair or replacement

 

facility shall be suggested.

 

     (b) If an insured does not state a preference for an

 

automobile glass repair or replacement facility, or if the

 

preferred repair or replacement facility is not a network facility

 

for the third party biller, the third party biller shall advise the

 

insured that the insured has the right to choose any repair or

 

replacement facility and the third party biller shall not threaten,

 

coerce, or intimidate the insured into selecting a particular

 

repair or replacement facility.

 

     (c) The third party biller will not close its network to new

 

applicants if the network contains automobile glass repair or

 

replacement facilities that are owned by or related to or

 

affiliated with the third party biller.

 

     (3) A third party biller shall, by January 15 each year,

 

provide a report to each automobile glass repair or replacement

 

facility that is a network facility for the third party biller that

 

includes all of the following information:

 

     (a) A statement of ownership.

 

     (b) The total number of automobile glass repair or replacement

 

claims for each automobile insurer that were processed, paid,

 

administered, or monitored in the preceding year.

 

     (c) The number of claims in the preceding year that were for

 

glass repair and the number that were for glass replacement.

 

     (d) The number of glass repair or replacement claims in the

 

preceding year that were processed for each automobile insurer

 

pursuant to subsection (2)(a) and the names of the automobile glass

 

repair or replacement facilities for whom a preference was stated.

 

     (e) The number of glass repair or replacement claims in the

 

preceding year that were processed for each automobile insurer

 

pursuant to subsection (2)(b) and, for each claim, the facility

 

names given to the insured, and the name of the chosen facility.