Bill Text: MI SB0821 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Insurance: no-fault; disclosure of territorial ratings information; require by insurers and department of insurance and financial services. Amends secs. 261 & 2112 of 1956 PA 218 (MCL 500.261 & 500.2112) & adds sec. 2111g.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-03-05 - Referred To Committee On Insurance And Banking [SB0821 Detail]
Download: Michigan-2019-SB0821-Introduced.html
SENATE BILL NO. 821
March 05, 2020, Introduced by Senator ALEXANDER
and referred to the Committee on Insurance and Banking.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 261 and 2112 (MCL 500.261 and 500.2112), section 261 as added by 2019 PA 21 and section 2112 as amended by 2015 PA 141, and by adding section 2111g.
the people of the state of michigan enact:
Sec. 261. (1) The department shall maintain on its
internet website a page that does all of the following:
(a) Advises that the
department may be able to assist a person who believes that an automobile
insurer is not paying benefits, not making timely payments, or otherwise not
performing as it is obligated to do under an insurance policy.
(b) Advises the person of
selected important rights that the person has under chapter 20 that
specifically relate to automobile insurers and the payment of benefits by
automobile insurers.
(c) Allows the person to
submit an explanation of the facts of the person's problems with the automobile
insurer.
(d) Allows the person to
submit electronically, or instructs the person how to provide paper copies of,
any documentation to support the facts submitted under subdivision (c).
(e) Explains to the
person the steps that the department will take and that may be taken after
information is submitted under this section.
(2) The department shall
maintain on its internet website a page that advises consumers about the
changes to automobile insurance in this state that were made by the amendatory act that added this
section, 2019 PA 21, including,
among any other information that the director determines to be important, ways
to shop for insurance.
(3) The department shall
maintain on its internet website a page or pages that allow a person to report
fraud and unfair settlement and claims practices.
(4)
The department shall maintain on its internet website, in a manner that is easily
viewable by the public, the disclosure statements provided by insurers and the
department's statements prepared under section 2111g.
Sec. 2111g. (1) If an insurer groups automobile
insurance risks by territory or in any way bases rates for automobile insurance
on the territories in which the insureds reside, the insurer shall provide a
disclosure statement to the director that includes all of the following:
(a)
A map or maps of all of the territories.
(b)
The rationale for the insurer's establishment of each territory.
(c)
For each territory, the insurer's justification of all rate differentials
between the territory and adjacent territories and between the territory and
all other territories, any part of which are located within 60 miles of any
part of the territory.
(2)
The department shall prepare, for each disclosure statement received under
subsection (1), a department statement that includes the department's
assessments, evaluations, recommendations, and commentary on the grouping of
risks by territory, establishment of territories, and rate making described in
and the disclosure statement provided under subsection (1).
Sec. 2112. (1) Subject to subsection (3), 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) An Other than information required to be disclosed under
subsection (4), 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).
(4) With a written notice required under subsection (1) related to an automobile insurance policy, the insurer shall enclose the disclosure statement provided by the insurer and the department's statements prepared in connection with the statement under section 2111g.
