January 22, 2008, Introduced by Senators JACOBS, CLARK-COLEMAN, ANDERSON, BRATER, THOMAS, GLEASON, SCHAUER, HUNTER, CHERRY, SCOTT and CLARKE and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2114 (MCL 500.2114).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2114. (1) A person or organization aggrieved with respect
to
any filing which that is in effect and which affects the person
or organization may make written application to the commissioner or
to the attorney general for a hearing on the filing. However, the
insurer
or rating organization which that
made the filing shall is
not
be authorized to proceed under this subsection. An application
form shall be prepared by the commissioner and the attorney general
for an applicant to use under this section. The application shall
specify the grounds to be relied upon by the applicant. If the
commissioner or the attorney general finds that the application is
made in good faith, that the applicant would be so aggrieved if the
grounds specified are established, or that the grounds specified
otherwise justify holding a hearing, the commissioner or the
attorney general, not more than 30 days after receipt of the
application,
shall hold a hearing in accordance with Act No. 306 of
the
Public Acts of 1969, as amended the
administrative procedures
act of 1969, 1969 PA 306, MCL 24.201 to 24.328, upon not less than
10 days' written notice to the applicant, the insurer, and the
rating
organization which that made the filing.
(2) If after hearing initiated under subsection (1) or upon
the
commissioner's or attorney
general's own motion pursuant to Act
No.
306 of the Public Acts of 1969, as amended the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, the
commissioner or the attorney general finds that a filing does not
meet the requirements of sections 2109 and 2111, the commissioner
or the attorney general shall issue an order stating the specific
reasons for that finding. The order shall state when, within a
reasonable time after issuance of the order, the filing shall be
considered no longer effective. If the commissioner or the attorney
general disapproves the filing as not being in compliance with
section 2109 because rates are excessive or unfairly
discriminatory, or as not being in compliance with section 2111, he
or she may order a refund of the premium to be made to affected
policyholders, in a manner prescribed by the commissioner or the
attorney general, so long as the amount is substantial and equals
or exceeds the cost of making the refund. A copy of the order shall
be sent to the applicant, if any, and to each insurer and rating
organization
subject to the order. The Except
for an adjustment
ordered under this section, the order shall not affect a contract
or policy made or issued before the date the filing becomes
ineffective, as indicated in the commissioner's or the attorney
general's order.