September 9, 2008, Introduced by Rep. Virgil Smith and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 1505 (MCL 500.1505).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1505. (1) The commissioner may revoke or suspend the
license
of any a premium finance company when and if after
investigation it appears to the commissioner that any 1 of the
following has occurred:
(a)
Any license issued to such the
company was obtained by
fraud.
(b) There was any misrepresentation in the application for the
license.
(c) The holder of the license has otherwise shown himself or
herself untrustworthy or incompetent to act as a premium finance
company.
(d) The company has violated any of the provisions of this
chapter , or the rules and regulations promulgated hereunder
under
this chapter.
(e)
The company has remunerated any insurance agent or any
employee
of an insurance agent or to any other
person, other than
an insurance producer or the employee of an insurance producer, as
an inducement to the financing of any insurance policy with the
premium
finance company. Except, that if the insurance agent
prepares
the premium finance agreement, the premium finance company
may
pay him a service fee not to exceed $2.00.
(2) Before the commissioner revokes, suspends, or refuses to
renew
the license of any a premium finance company, he or she shall
give to the person an opportunity to be fully heard and to
introduce
evidence in his or her behalf. In lieu Instead of
revoking
or suspending the license for any of the causes enumerated
in
this section reasons listed
in subsection (1), after a hearing,
the commissioner may subject the company to a penalty of not more
than $200.00 for each offense but the total not to exceed $1,000.00
when
in his or her judgment he the commissioner finds that
the
public interest would not be harmed by the continued operation of
the company. The amount of any penalty shall be paid by the company
through
the office of the commissioner financial
and insurance
regulation to the state treasury. At any hearing provided by this
section, the commissioner shall have authority to administer oaths
to witnesses. Anyone testifying falsely, after having been
administered
such an oath, shall be subject to the penalty of
perjury.
(3)
If the commissioner refuses to issue or renew any a
license
or if any an applicant or licensee is aggrieved by any
action of the commissioner, the applicant or licensee shall have
the right to a hearing and court proceeding as provided for in
section 244.