HOUSE BILL No. 4175


     February 13, 2001, Introduced by Reps. Basham and Schermesser 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 chapter 3.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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                                  CHAPTER 3

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                      OFFICE OF PUBLIC INSURANCE COUNSEL

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           SEC. 301.  (1) THE INDEPENDENT OFFICE OF PUBLIC INSURANCE

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      COUNSEL IS CREATED WITHIN THE OFFICE OF FINANCIAL AND INSURANCE

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      SERVICES.

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           (2) THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE SENATE

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      SHALL APPOINT A PUBLIC COUNSEL FOR A TERM OF 4 YEARS.  THE PUBLIC

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      COUNSEL SHALL SERVE AS EXECUTIVE DIRECTOR OF THE OFFICE OF PUBLIC

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      INSURANCE COUNSEL.






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           (3) TO BE ELIGIBLE TO SERVE AS PUBLIC COUNSEL FOR THE OFFICE

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      OF PUBLIC INSURANCE COUNSEL A PERSON SHALL MEET ALL OF THE

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      FOLLOWING REQUIREMENTS:

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           (A) BE A RESIDENT OF MICHIGAN.

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           (B) BE ADMITTED TO PRACTICE LAW IN MICHIGAN.

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           (C) DEMONSTRATE A STRONG COMMITMENT AND INVOLVEMENT IN

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      EFFORTS TO SAFEGUARD PUBLIC RIGHTS.

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           (D) POSSESS THE KNOWLEDGE AND EXPERIENCE NECESSARY TO PRAC-

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      TICE EFFECTIVELY IN INSURANCE PROCEEDINGS.

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           SEC. 303.  THE OFFICE OF PUBLIC INSURANCE COUNSEL MAY ASSESS

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      THE IMPACT OF INSURANCE RATES, RULES, AND FORMS ON INSURANCE CON-

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      SUMERS IN MICHIGAN AND, IN ITS OWN NAME, SHALL ACT AS AN ADVOCATE

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      OF POSITIONS THAT ARE MOST ADVANTAGEOUS TO A SUBSTANTIAL NUMBER

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      OF INSURANCE CONSUMERS AS DETERMINED BY THE PUBLIC COUNSEL FOR

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      THE OFFICE.

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           SEC. 305.  THE OFFICE OF PUBLIC INSURANCE COUNSEL MAY ACCESS

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      ANY RECORDS THAT ARE AVAILABLE TO ANY PARTY IN A PROCEEDING

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      BEFORE THE COMMISSIONER AND IS ENTITLED TO DISCOVERY OF ANY NON-

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      PRIVILEGED MATTER THAT IS RELEVANT TO THE SUBJECT MATTER INVOLVED

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      IN ANY PROCEEDING OR SUBMISSION BEFORE THE COMMISSIONER.

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           SEC. 307.  (1) THE PUBLIC COUNSEL SHALL DO ALL OF THE

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      FOLLOWING:

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           (A) ADMINISTER, ENFORCE, AND CARRY OUT ALL DUTIES UNDER THIS

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      CHAPTER.

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           (B) PREPARE AND SUBMIT TO THE LEGISLATURE A BUDGET FOR THE

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      OFFICE OF PUBLIC INSURANCE COUNSEL.





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           (C) EMPLOY PROFESSIONAL, TECHNICAL, AND OTHER EMPLOYEES AS

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      ARE NECESSARY TO CARRY OUT THIS CHAPTER.

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           (D) SUBMIT TO THE COMMISSIONER FOR ADOPTION A CONSUMER BILL

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      OF RIGHTS APPROPRIATE TO EACH PERSONAL LINE OF INSURANCE REGU-

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      LATED BY THE COMMISSIONER TO BE DISTRIBUTED BY INSURERS UPON THE

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      ISSUANCE OF A POLICY TO EACH POLICYHOLDER UNDER RULES ADOPTED BY

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      THE COMMISSIONER.

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           (2) THE PUBLIC COUNSEL SHALL NOT INTERVENE IN HEARINGS

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      BEFORE THE COMMISSIONER THAT RELATE TO APPROVAL OR CONSIDERATION

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      OF INDIVIDUAL CHARTERS, LICENSES, ACQUISITIONS, MERGERS, OR EXAM-

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      INATIONS, PROCEEDINGS CONCERNING THE SOLVENCY OF INDIVIDUAL

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      INSURERS AFTER A RECEIVER IS APPOINTED, OR OTHER MATTERS AFFECT-

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      ING INDIVIDUAL INSURER OR AGENT LICENSES.

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           SEC. 309.  THE PUBLIC COUNSEL MAY DO ANY OF THE FOLLOWING:

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           (A) APPEAR OR INTERVENE AS A MATTER OF RIGHT BEFORE THE COM-

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      MISSIONER AS A PARTY OR OTHERWISE ON BEHALF OF INSURANCE CONSUM-

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      ERS AS A CLASS IN ANY OF THE FOLLOWING:

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           (i) MATTERS INVOLVING RATES, RULES, AND FORMS AFFECTING

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      PROPERTY AND CASUALTY INSURANCE.

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           (ii) MATTERS INVOLVING RATES, RULES, AND FORMS AFFECTING

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      TITLE INSURANCE.

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           (iii) MATTERS INVOLVING RULES AFFECTING LIFE, HEALTH, AND

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      ACCIDENT INSURANCE.

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           (iv) MATTERS INVOLVING RATES, RULES, AND FORMS AFFECTING

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      CREDIT LIFE AND CREDIT ACCIDENT AND HEALTH INSURANCE.







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           (v) MATTERS INVOLVING RATES, RULES, AND FORMS AFFECTING ALL

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      OTHER LINES OF INSURANCE FOR WHICH THE COMMISSIONER PROMULGATES,

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      SETS, OR APPROVES RATES, RULES, OR FORMS.

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           (vi) MATTERS INVOLVING WITHDRAWAL OF APPROVAL OF POLICY

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      FORMS IF THE PUBLIC COUNSEL DETERMINES THAT THESE FORMS DO NOT

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      COMPLY WITH THIS ACT OR A VALID RULE OR ARE OTHERWISE CONTRARY TO

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      LAW.

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           (B) INITIATE OR INTERVENE AS A MATTER OF RIGHT OR OTHERWISE

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      APPEAR IN A JUDICIAL PROCEEDING INVOLVING OR ARISING OUT OF ANY

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      ACTION TAKEN BY AN ADMINISTRATIVE AGENCY IN A PROCEEDING IN WHICH

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      THE PUBLIC COUNSEL APPEARED UNDER THE AUTHORITY GRANTED BY THIS

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      CHAPTER.

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           (C) RECOMMEND LEGISLATION TO THE LEGISLATURE THAT, IN THE

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      JUDGMENT OF THE PUBLIC COUNSEL, WOULD AFFECT POSITIVELY THE

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      INTERESTS OF INSURANCE CONSUMERS.

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           (D) APPEAR OR INTERVENE AS A MATTER OF RIGHT AS A PARTY OR

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      OTHERWISE ON BEHALF OF INSURANCE CONSUMERS AS A CLASS IN ALL PRO-

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      CEEDINGS IN WHICH THE PUBLIC COUNSEL DETERMINES THAT INSURANCE

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      CONSUMERS NEED REPRESENTATION, EXCEPT THAT THE PUBLIC COUNSEL MAY

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      NOT INTERVENE IN ANY ENFORCEMENT PROCEEDING BROUGHT BY THE ATTOR-

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      NEY GENERAL.

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           SEC. 311.  THE PUBLIC COUNSEL SHALL NOT, FOR A PERIOD OF 2

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      YEARS AFTER THE DATE HE OR SHE CEASES TO BE PUBLIC COUNSEL, REP-

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      RESENT ANY PERSON OR RECEIVE COMPENSATION FOR SERVICES RENDERED

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      ON BEHALF OF ANY PERSON IN A PROCEEDING BEFORE THE COMMISSIONER.







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