HOUSE BILL No. 4620


     May
4, 1999, Introduced
by
Reps.
Scott,
DeHart, Brewer,
Prusi,
Cherry,
Daniels,
LaForge, Gieleghem, Frank, Neumann, Quarles, Reeves, Hardman, Clark,
Basham, Jamnick,
Bogardus,
Thomas,
Hansen, Callahan, Lockwood, Ehardt,
Bob Brown, Vaughn, Stallworth,
Schermesser,
Brater,
Martinez, Price,
Mans,
O'Neil, Spade, Woodward, Schauer,
Dennis,
Wojno, Minore,
Bovin, Garza,
Rivet,
Pestka,
Lemmons
and Geiger and referred to the Committee on
Insurance
and Financial
Services.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 1224 (MCL 500.1224), as amended by 1981 PA

   1.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 1224.  (1) An application for a license to act as an

 2    adjuster shall be made to the commissioner on forms prescribed by

 3    the commissioner.

 4         (2) Within a reasonable time after receipt of a properly

 5    completed application form, the commissioner may subject the

 6    applicant to a written examination, and may conduct investiga-

 7    tions and propound interrogatories concerning the applicant's

 8    qualifications, residence, business affiliations, and any other

 9    matter  which  THAT the commissioner considers necessary or

10    advisable to determine compliance with this chapter, or for the


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 1    protection of the public.  The commissioner shall make a decision

 2    on the application within 60 days after receipt of a properly

 3    completed application form.

 4         (3) After examination, investigation, and interrogatories,

 5    the commissioner shall issue a license to an applicant if the

 6    commissioner determines that the applicant possesses reasonable

 7    understanding of the provisions, terms, and conditions of the

 8    insurance with which the applicant will deal, possesses reason-

 9    able understanding of the insurance laws of this state, intends

10    in good faith to act as an adjuster, possesses a good business

11    reputation, and possesses good moral character to act as an

12    adjuster.  Persons currently licensed and new licenses issued

13     shall be  ARE subject to any additional restrictions under which

14    a resident of this state would be licensed in the jurisdiction in

15    which the applicant resides.  Any such restriction shall be

16    imposed by the commissioner upon the date set for payment of the

17    license fee.  The commissioner shall not issue a new license or

18    accept an annual license fee continuing a current license to  a 

19    EITHER OF THE FOLLOWING:

20         (A) A person residing in a state that denies a comparable

21    license to a resident of this state solely because of residency.

22         (B) A PERSON WHO IS EMPLOYED EITHER DIRECTLY OR INDIRECTLY

23    BY AN ADJUSTER THAT IS A RESIDENT OF A STATE, OR BY AN ADJUSTER'S

24    BUSINESS THAT HAS A MAJORITY OF SHAREHOLDERS, MEMBERS, OFFICERS,

25    DIRECTORS, OR OWNERS THAT ARE RESIDENTS OF A STATE, THAT DENIES A

26    COMPARABLE LICENSE TO A RESIDENT OF THIS STATE SOLELY BECAUSE OF

27    RESIDENCY.  AN AFFIDAVIT FROM AN APPLICANT ESTABLISHING



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 1    COMPLIANCE WITH THIS SUBDIVISION MAY BE RELIED ON BY THE

 2    COMMISSIONER TO SHOW COMPLIANCE WITH THIS SUBDIVISION.

 3         (4) The commissioner shall not issue a license to act as an

 4    adjuster to a person who is employed by, owns stock in, is an

 5    officer or director of, or in any other manner is connected with,

 6    a fire repair contractor.












































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