HOUSE BILL No. 5646


     April 18, 2000, Introduced by Reps. Daniels, Switalski, Clark, Quarles, Gosselin, Richardville, Hale, DeHart and Lemmons
and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   (MCL 500.100 to 500.8302) by adding section 2110b.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 2110B.  (1) AN AUTOMOBILE INSURANCE POLICY AND AN AUTO-

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      MOBILE INSURER AND ITS EMPLOYEES, AGENTS, AND ADJUSTERS SHALL NOT

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      DO EITHER OF THE FOLLOWING:

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           (A) INTIMIDATE, INDUCE, RECOMMEND, SUGGEST, OR REQUIRE AN

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      INSURED TO USE A PARTICULAR PERSON, PLACE, SHOP, OR ENTITY FOR

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      THE PROVIDING OF ANY AUTOMOBILE REPAIR OR AUTOMOBILE GLASS REPAIR

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      OR REPLACEMENT SERVICE OR PRODUCT COVERED BY THE POLICY.

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           (B) INTIMIDATE, INDUCE, RECOMMEND, SUGGEST, OR REQUIRE AN

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      INSURED TO USE A PARTICULAR BRAND, TYPE, KIND, AGE, OR CONDITION

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      OF PARTS FOR A PART OR GLASS COVERED BY THE POLICY.




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           (2) AN AUTOMOBILE INSURER SHALL FULLY AND PROMPTLY PAY FOR

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      THE COST OF ANY COVERED AUTOMOBILE REPAIR SERVICE OR PRODUCT

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      INCLUDING GLASS REPAIR OR REPLACEMENT LESS ANY APPLICABLE DEDUCT-

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      IBLE AT NOT LESS THAN THE PREVAILING OR GENERALLY FOUND MARKET

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      PRICE IN THE AREA FOR SIMILARLY SITUATED AUTOMOBILE REPAIR OR

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      AUTOMOBILE GLASS REPAIR OR REPLACEMENT SERVICES OR PRODUCTS.  THE

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      PREVAILING OR GENERALLY FOUND MARKET PRICE IN THE AREA SHALL NOT

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      BE LIMITED TO THE LOWEST PRICE AND SHALL NOT TAKE INTO CONSIDERA-

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      TION ANY SPECIAL PRICE OR SERVICE ARRANGEMENT OFFERED BY THE PAR-

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      TICULAR PERSON, PLACE, SHOP, OR ENTITY.  AN AUTOMOBILE INSURER

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      SHALL NOT FAIL TO FULLY AND PROMPTLY PAY FOR THE COST OF ANY COV-

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      ERED AUTOMOBILE REPAIR OR AUTOMOBILE GLASS REPAIR OR REPLACEMENT

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      SERVICE OR PRODUCT BECAUSE OF AN INSURED'S SELECTION OF A PARTIC-

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      ULAR PERSON, PLACE, SHOP, OR ENTITY TO PROVIDE THE COVERED AUTO-

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      MOBILE REPAIR OR AUTOMOBILE GLASS REPAIR OR REPLACEMENT SERVICE

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      OR PRODUCT.

























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