SENATE BILL No. 1410

September 17, 2002, Introduced by Senator BULLARD and referred to the Committee on

Financial Services.

A bill to amend 1969 PA 317, entitled

"Worker's disability compensation act of 1969,"

by amending section 625 (MCL 418.625), as amended by 1995 PA

271.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 625. (1) Each insurer mentioned in section 611 issu-

2 ing an insurance policy covering workmen's WORKER'S compensa-

3 tion in this state shall file with the director, within 30 days

4 after the effective date of the policy, a notice of the issuance

5 of the policy and its effective date. A NOTICE OF ISSUANCE OF

6 INSURANCE, A NOTICE OF TERMINATION OF INSURANCE, OR A NOTICE OF

7 EMPLOYER NAME CHANGE MAY BE SUBMITTED IN WRITING OR BY USING

8 BUREAU APPROVED ELECTRONIC RECORD LAYOUT AND TRANSACTION

9 STANDARDS. BUREAU APPROVED ELECTRONIC RECORD LAYOUT AND

10 TRANSACTION STANDARDS MAY BE FILED BY THE COMPENSATION ADVISORY

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1 ORGANIZATION OF MICHIGAN. PAYMENT SHALL NOT BE REQUIRED BY THE

2 BUREAU OR ANY THIRD PARTY FOR THE USE OF BUREAU APPROVED ELEC-

3 TRONIC RECORD LAYOUT AND TRANSACTION STANDARDS UNDER THIS ACT.

4 TIME REQUIREMENTS FOR NOTICES UNDER THIS ACT APPLY WHETHER FILED

5 BY THE INSURER OR THE COMPENSATION ADVISORY ORGANIZATION OF

6 MICHIGAN. If the policy covers persons who would otherwise be

7 exempted from the provisions of this act by section 115, the

8 notice shall contain a specific statement to that effect. A

9 notice shall not be required of any insurer where the policy

10 issued is a renewal of the preceding policy. The insurer, if it

11 refuses to accept any coverage under this act, shall do so in

12 writing.

13 (2) If, following a hearing held by the director under this

14 act, the director determines that an insurer has engaged in a

15 pattern and practice of numerous intentional violations of this

16 section, the director may assess against that insurer a civil

17 fine of up to $750.00. This subsection and subsection (3) do not

18 apply after the director certifies that an electronic data

19 reporting system for reporting of this information is

20 operational.

21 (3) The director may alternatively proceed under section

22 631.

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