HOUSE BILL No. 4839

 

June 12, 2003, Introduced by Reps. Hunter, McConico, Tobocman, Accavitti, Waters, Clack, Stallworth, Zelenko, Minore, Vagnozzi, Reeves, Plakas, Condino and Hardman and referred to the Committee on Insurance.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1956 PA 218, entitled                                             

                                                                                

    "The insurance code of 1956,"                                               

                                                                                

    by amending section 2127 (MCL 500.2127) and by adding section               

                                                                                

    2128.                                                                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 2127.  The commissioner may by rule prospectively                      

                                                                                

2   require insurers, rating organizations, and advisory                        

                                                                                

3   organizations to collect and report data  only  to the extent               

                                                                                

4   necessary to monitor and evaluate the automobile and home                   

                                                                                

5   insurance markets in this state.  The commissioner shall                    

                                                                                

6   authorize the use of sampling techniques in each instance where             

                                                                                

7   sampling is practicable and consistent with the purposes for                

                                                                                

8   which the data, by county, are to be collected and reported.                

                                                                                

9   Rules promulgated pursuant to this section are in addition to,              

                                                                                

10  and do not replace, the reporting requirements in section 2128.             

                                                                                


                                                                                

1       Sec. 2128.  By April 1 of each year, each insurer who issues                

                                                                                

2   automobile insurance in this state shall file with the                      

                                                                                

3   commissioner and with the automobile insurance data collection              

                                                                                

4   agency created in section 2128a on forms prescribed by the                  

                                                                                

5   automobile insurance data collection agency, the following                  

                                                                                

6   automobile insurance data, by territory, for the prior calendar             

                                                                                

7   year:                                                                       

                                                                                

8       (a) With respect to personal protection insurance coverage:                 

                                                                                

9                                                                                (i) The number of claims for personal protection insurance                          

                                                                                

10  benefits for which payment is made.                                         

                                                                                

11      (ii) The number of claims for personal protection insurance                  

                                                                                

12  benefits that are closed without payment.                                   

                                                                                

13      (iii) The number of claims for personal protection insurance                 

                                                                                

14  benefits that involve some form of litigation and are closed                

                                                                                

15  without payment.                                                            

                                                                                

16      (iv) The number of claims for personal protection insurance                  

                                                                                

17  benefits that involve litigation and for which payment is made              

                                                                                

18  after litigation commences, including the length of time between            

                                                                                

19  the filing of the claim and the first payment.                              

                                                                                

20      (v) The amount of interest charges paid on claims for                       

                                                                                

21  personal protection insurance benefits and the number of cases              

                                                                                

22  for which interest charges have been paid.                                  

                                                                                

23      (vi) The litigation costs for claims for personal protection                 

                                                                                

24  insurance benefits.                                                         

                                                                                

25      (vii) The number of cases going to verdict and the amount of                 

                                                                                

26  the verdict in those cases where an award is made.                          

                                                                                

27      (viii) The number of verdicts of no cause of action.                          


                                                                                

1       (ix) The number of cases where attorney fees are paid, the                  

                                                                                

2   total amount of attorney fees paid, and the amount of attorney              

                                                                                

3   fees paid for each case where fees were paid.                               

                                                                                

4       (b) With respect to property protection insurance coverage:                 

                                                                                

5                                                                                (i) The number of third party automobile bodily injury tort                         

                                                                                

6   claims closed by payment to the claimant before the commencement            

                                                                                

7   of litigation and a breakdown of how many of these claims were              

                                                                                

8   death threshold claims, serious impairment of body function                 

                                                                                

9   threshold claims, and permanent serious disfigurement threshold             

                                                                                

10  claims.                                                                     

                                                                                

11      (ii) The number of third party automobile bodily injury tort                 

                                                                                

12  claim lawsuits filed, and a breakdown of how many were filed for            

                                                                                

13  death threshold claims, serious impairment of body function                 

                                                                                

14  threshold claims, and permanent serious disfigurement threshold             

                                                                                

15  claims.                                                                     

                                                                                

16      (iii) The number of third party automobile bodily injury tort                

                                                                                

17  claims closed by payment to the claimant after the commencement             

                                                                                

18  of litigation and a breakdown of how many of these claims were              

                                                                                

19  death threshold claims, serious impairment of body function                 

                                                                                

20  threshold claims, and permanent serious disfigurement threshold             

                                                                                

21  claims.                                                                     

                                                                                

22      (iv) The dollar amount paid to claimants to settle third                     

                                                                                

23  party automobile bodily injury tort claims before and after                 

                                                                                

24  litigation had been commenced and a breakdown of the dollar                 

                                                                                

25  amounts paid for death threshold claims, serious impairment of              

                                                                                

26  body function threshold claims, and permanent serious                       

                                                                                

27  disfigurement threshold claims.                                             


                                                                                

1       (v) The number and dollar amount paid or reserved for all                   

                                                                                

2   bodily injury claims set up or opened, indicating the number and            

                                                                                

3   dollar amount of reserves for claims remaining open at the end of           

                                                                                

4   the reporting period.                                                       

                                                                                

5       Enacting section 1.  This amendatory act does not take                      

                                                                                

6   effect unless Senate Bill No. ____ or House Bill No. 4840                   

                                                                                

7   (request no. 03474'03) of the 92nd Legislature is enacted into              

                                                                                

8   law.