SENATE BILL No. 1259

 

 

May 25, 2004, Introduced by Senators SCOTT, JACOBS, BRATER, CLARK-COLEMAN, BASHAM and CHERRY and referred to the Committee on Banking and Financial Institutions.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1956 PA 218, entitled                                             

                                                                                

    "The insurance code of 1956,"                                               

                                                                                

    by amending section 2127 (MCL 500.2127) and by adding section               

                                                                                

    2128.                                                                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 2127.  The commissioner may by rule prospectively                      

                                                                                

2   require insurers, rating organizations, and advisory                        

                                                                                

3   organizations to collect and report data  only  to the extent               

                                                                                

4   necessary to monitor and evaluate the automobile and home                   

                                                                                

5   insurance markets in this state.  The commissioner shall                    

                                                                                

6   authorize the use of sampling techniques in each instance where             

                                                                                

7   sampling is practicable and consistent with the purposes for                

                                                                                

8   which the data, by county, are to be collected and reported.                

                                                                                

9   Rules promulgated pursuant to this section are in addition to,              

                                                                                

10  and do not replace, the reporting requirements in section 2128.             

                                                                                


                                                                                

1       Sec. 2128.  (1) By April 1 of each year, each insurer who                   

                                                                                

2   issues automobile insurance or home insurance in this state shall           

                                                                                

3   file with the commissioner on forms prescribed by the                       

                                                                                

4   commissioner the following insurance data for the prior calendar            

                                                                                

5   year:                                                                       

                                                                                

6       (a) The number of claims for benefits for which payment is                  

                                                                                

7   made and the average time for processing the claims.                        

                                                                                

8       (b) The number of claims for benefits that are closed without               

                                                                                

9   payment and the average time for processing the claims.                     

                                                                                

10      (c) The number of claims for benefits that involve some form                

                                                                                

11  of litigation and are closed without payment and the average time           

                                                                                

12  for processing the claims.                                                  

                                                                                

13      (d) The number of claims for benefits that involve litigation               

                                                                                

14  and for which payment is made after litigation commences,                   

                                                                                

15  including the average length of time between the filing of the              

                                                                                

16  claim and the first payment.                                                

                                                                                

17      (2) Information filed with the commissioner under subsection                

                                                                                

18  (1) is subject to the freedom of information act, 1976 PA 442,              

                                                                                

19  MCL 15.231 to 15.246.