LIMITED LICENSE FOR SOLICITING CREDIT INSURANCE PRODUCTS

House Bill 4892

Sponsor: Rep. Clark Bisbee

Complete to 10-29-99

A SUMMARY OF HOUSE BILL 4892 AS INTRODUCED 9-28-99

The bill would amend Chapter 12 of the Insurance Code, which deals with the licensing of insurance agents, solicitors, adjustors, and counselors, to specify the following:

- - A license would not be required for a person who acts as an employee of a creditor or vendor and receives no commission for securing and forwarding information for the purpose of obtaining group credit life insurance, group credit accident and health insurance, group credit property insurance, or group involuntary unemployment insurance or for enrolling individuals in or issuing certificates of insurance for any of those lines of insurance.

- - The insurance commissioner would have to issue a limited agent's license to an applicant otherwise qualified under the chapter whose insurance activities were limited to the solicitation and sale of credit life insurance, credit accident and health insurance, credit property insurance, credit involuntary unemployment insurance, and family leave insurance. Requirements regarding program of study, examination, and continuing education would not apply to this limited license.

(Generally, with a few exceptions, to solicit insurance, bind coverage, or in any manner act as an insurance agent in Michigan, a person must both have a license from the state and be authorized by an insurance company to transact insurance.)

MCL 500.1203a and 500.1203b

Analyst: C. Couch

This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.