December 18, 2014, Introduced by Rep. Cavanagh and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 102 and 2112 (MCL 500.102 and 500.2112),
section 102 as amended by 2000 PA 252 and section 2112 as amended
by 2012 PA 454, and by adding section 2107b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 102. As used in this act:
(a)
(1) "Commissioner" as used in this act means
the
commissioner
of the office of financial and insurance services.
director.
(b) (2)
"Department" as used
in this act means the office
department
of financial and insurance and financial services.
(c) "Director" means the director of the department.
Sec. 2107b. (1) At the time of a rate filing for automobile
insurance, the director shall prominently post the rate filing
information in plain language on the department website.
(2) Notwithstanding any other provision of this act, an
automobile insurer shall not increase rates for automobile
insurance unless written notice is given to insureds of the rate
increase filing, not less than 60 days before the proposed
effective date of the new rates, stating in plain language the
amount of the increase and the insured's ability to request a
public hearing and provide written comments to the director
concerning the rate increase.
(3) A person or organization aggrieved with respect to any
rate filing may request the director to conduct a public hearing to
provide input regarding the rate filing. The director may grant a
request for a public hearing and may designate 1 or more persons to
conduct the public hearing if the director considers a public
hearing necessary and appropriate for fact-finding or information
gathering before making decisions, policies, and determinations
allowable or required by law in the course of carrying out the
director's duties. In examining the rate filing, the director shall
take into account any relevant input received as a result of a
public hearing under this section.
Sec. 2112. (1) 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 in plain language 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 shall 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
commissioner
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.