SENATE BILL No. 27

 

 

January 12, 2005, Introduced by Senator SCOTT 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:

 

     Sec. 2127. The commissioner may by rule prospectively require

 

insurers, rating organizations, and advisory organizations to

 

collect and report data  only  to the extent necessary to monitor

 

and evaluate the automobile and home insurance markets in this

 

state. The commissioner shall authorize the use of sampling

 

techniques in each instance where sampling is practicable and

 

consistent with the purposes for which the data, by county, are to

 

be collected and reported. Rules promulgated pursuant to this

 

section are in addition to, and do not replace, the reporting


 

requirements in section 2128.

 

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

 

issues automobile insurance or home insurance in this state shall

 

file with the commissioner on forms prescribed by the commissioner

 

the following insurance data for the prior calendar year:

 

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

 

made and the average time for processing the claims.

 

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

 

payment and the average time for processing the claims.

 

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

 

of litigation and are closed without payment and the average time

 

for processing the claims.

 

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

 

and for which payment is made after litigation commences, including

 

the average length of time between the filing of the claim and the

 

first payment.

 

     (2) Information filed with the commissioner under subsection

 

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

 

15.231 to 15.246.