SENATE BILL No. 311

 

 

March 16, 2005, Introduced by Senators OLSHOVE, CHERRY, BERNERO, SCHAUER, JACOBS, KUIPERS, HAMMERSTROM and PRUSI 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 3101a (MCL 500.3101a), as amended by 1996 PA

 

456.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3101a. (1) An insurer  , in conjunction with the issuance

 

of an  that issues a policy for automobile insurance, policy, as

 

defined in section 3303, shall provide 2 certificates of insurance

 

for each insured vehicle. The insurer shall mark 1 of the

 

certificates as the secretary of state's copy.  , which  The copy

 

shall, except as otherwise provided in subsection (2), shall be

 

filed with the secretary of state by the policyholder upon

 

application for a vehicle registration. The secretary of state

 


shall  not  maintain the certificate of insurance received under

 

this subsection on file. An insurer shall notify the secretary of

 

state if a policy expires without being renewed or is terminated or

 

if a policyholder cancels his or her automobile insurance policy.

 

The notice of expiration, termination, or cancellation shall

 

contain all of the following information:

 

     (a) The vehicle identification number.

 

     (b) The name and address of the policyholder.

 

     (c) The insurance policy number.

 

     (d) The time and date of expiration, termination, or

 

cancellation.

 

     (2) The secretary of state shall accept as proof of vehicle

 

insurance a transmission, in the format required by the secretary

 

of state, of the insured vehicle's vehicle identification number.

 

Vehicle identification numbers received by the secretary of state

 

under this subsection are confidential and shall not be disclosed

 

to any person except  pursuant to an order  by order of a court of

 

competent jurisdiction in connection with a claim or fraud

 

investigation or prosecution. The transmission to the secretary of

 

state of a vehicle identification number is proof of insurance to

 

the secretary of state for motor vehicle registration purposes only

 

and is not evidence that a policy of insurance actually exists

 

between an insurer and an individual.

 

     (3) A person who fails to supply information to the secretary

 

of state or who supplies false information to the secretary of

 

state under this section or who issues or uses an altered,

 

fraudulent, or counterfeit certificate of insurance is guilty of a

 


misdemeanor punishable by imprisonment for not more than 1 year  ,

 

or a fine of not more than $1,000.00, or both.

 

     Enacting section 1.  This amendatory act does not take effect

 

unless Senate Bill No. 312                                   

 

          of the 93rd Legislature is enacted into law.