January 24, 2006, Introduced by Reps. Polidori, Condino, Espinoza, Lipsey, Cheeks, Williams, Brown, Meisner, Gleason, Zelenko, Anderson, Donigan, Plakas, Farrah, Tobocman, Virgil Smith, Kolb, Angerer, Hood and Lemmons, III and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 2114, 2418, and 2618 (MCL 500.2114, 500.2418,
and 500.2618), section 2418 as amended by 1993 PA 200.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2114. (1) A person or organization aggrieved with respect
to
any filing which that is in effect and which affects
the
person or organization may make written application to the
commissioner for a hearing on the filing. However, the insurer or
rating
organization which that made the filing shall is
not be
authorized to proceed under this subsection. The application shall
specify the grounds to be relied upon by the applicant. If the
commissioner finds that the application is made in good faith, that
the applicant would be so aggrieved if the grounds specified are
established, or that the grounds specified otherwise justify
holding a hearing, the commissioner, not more than 30 days after
receipt
of the application, shall hold a hearing in accordance with
Act
No. 306 of the Public Acts of 1969, as amended the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, upon not less than 10 days' written notice to the
applicant,
the insurer, and the rating organization which that
made the filing.
(2) If after hearing initiated under subsection (1) or upon
the
commissioner's own motion pursuant to Act No. 306 of the
Public
Acts of 1969, as amended the
administrative procedures act
of 1969, 1969 PA 306, MCL 24.201 to 24.328, the commissioner finds
that a filing does not meet the requirements of sections 2109 and
2111, the commissioner shall issue an order stating the specific
reasons for that finding. The order shall state when, within a
reasonable time after issuance of the order, the filing shall be
considered no longer effective. If the commissioner disapproves the
filing as not being in compliance with section 2109 because rates
are excessive or unfairly discriminatory, he or she may order a
refund of the premium to be made to affected policyholders, if the
amount is substantial and equals or exceeds the cost of making the
refund. A copy of the order shall be sent to the applicant, if any,
and
to each insurer and rating organization subject to the order.
The
Except for an adjustment
ordered under this section, the order
shall not affect a contract or policy made or issued before the
date the filing becomes ineffective, as indicated in the
commissioner's order.
Sec. 2418. If at any time after approval of any filing either
by act or order of the commissioner or by operation of law, or
before approval of a filing made by a worker's compensation insurer
controlled
by a nonprofit health care corporation formed
operating pursuant to the nonprofit health care corporation reform
act,
Act No. 350 of the Public Acts of 1980, being sections
550.1101
to 550.1704 of the Michigan Compiled Laws 1980 PA 350,
MCL 550.1101 to 550.1704, the commissioner finds that a filing does
not meet the requirements of this chapter, the commissioner shall,
after a hearing held upon not less than 10 days' written notice,
specifying the matters to be considered at the hearing, to every
insurer and rating organization that made the filing, issue an
order specifying in what respects the commissioner finds that the
filing fails to meet the requirements of this chapter, and stating
for a filing that has gone into effect when, within a reasonable
period thereafter, that filing shall be considered no longer
effective.
Copies If the
commissioner disapproves the filing as
not being in compliance with section 2403(1)(d) because rates are
excessive or unfairly discriminatory, he or she may order a refund
of the premium to be made to affected policyholders, if the amount
is substantial and equals or exceeds the cost of making the refund.
A
copy of the order shall be sent to
every such insurer and
rating
organization subject to the order. The Except for an
adjustment ordered under this section, the order shall not affect
any
contract or policy made or issued prior to the expiration of
the
period set forth in the order before
the date the filing
becomes ineffective as indicated in the commissioner's order.
Sec.
2618. If at any time subsequent to after the applicable
review period provided for in section 2616, the commissioner finds
that
a filing does not meet the requirements of this chapter, he
the commissioner shall, after a hearing held upon not less than 10
days' written notice, specifying the matters to be considered at
such
the hearing, to every insurer and rating organization which
that
made such the filing,
issue an order specifying in what
respects he
the commissioner finds that such
the filing fails
to meet the requirements of this chapter, and stating when, within
a
reasonable period thereafter, such that filing shall be deemed
considered no longer effective. Copies If the commissioner
disapproves the filing as not being in compliance with section
2603(1)(d) because rates are excessive or unfairly discriminatory,
he or she may order a refund of the premium to be made to affected
policyholders, if the amount is substantial and equals or exceeds
the
cost of making the refund. A copy of said
the order shall be
sent
to every such insurer and rating organization subject to the
order. Said Except
for an adjustment ordered under this section,
the order shall not effect affect any
contract or policy made or
issued
prior to the expiration of the period set forth in said
order
before the date the filing
becomes ineffective as indicated
in the commissioner's order.