January 22, 2008, Introduced by Senators CLARK-COLEMAN, JACOBS, ANDERSON, BRATER, THOMAS, GLEASON, SCHAUER, SWITALSKI, BASHAM, HUNTER, CHERRY and CLARKE and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2115 (MCL 500.2115), as amended by 1980 PA 461.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
2115. (1) If as As part of a decision in a proceeding
under section 2114, or in a separate proceeding on the
commissioner's
own motion, held pursuant to Act No. 306 of the
Public
Acts of 1969, as amended, the commissioner finds that a
reasonable
degree of competition does not exist on a statewide
basis
with respect to automobile insurance or home insurance, the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328,
the commissioner shall by may order
require each an
automobile
or home insurer which transacts that
type of insurance
in
this state to comply with the
provisions of chapter 24 or 26, as
the
case may be. , with respect to that insurance which was the
subject
of the commissioner's finding. The
order shall take effect
not less than 90 nor more than 150 days after the order is issued.
On or after the effective date of an order issued under this
subsection,
none of the provisions of this chapter shall be is
applicable
to the insurance which that
was the subject of the
order.
(2) After an order issued pursuant to subsection (1) has been
in
effect for 1 year, if the commissioner has reason to believe
that
there would be a reasonable degree of price competition for
the
type of insurance affected by the order, the commissioner, on
his
or her own motion, or if, upon
the petition of an insurer or a
resident
of this state, there is a showing that there is reason to
believe
that there would be a reasonable degree of price
competition
for that type of insurance, the commissioner shall may
hold
a hearing 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, to determine if a
reasonable degree of price
competition
would exist if whether the order were no longer issued
under subsection (1) should remain in effect. The hearing shall be
held upon not less than 20 days' written notice to each insurer
subject to the order under subsection (1) and upon not less than 20
days' notice in not less than 3 newspapers of general circulation
within this state.
(3)
If the commissioner finds after the hearing that a
reasonable
degree of price competition would exist, an order issued
under subsection (1) should not remain in effect, the commissioner
shall by order state when, not less than 90 nor more than 150 days
after
issuance of a new order, the preceding order under subsection
(1) will no longer be effective. On and after the effective date of
an order issued under this subsection, the provisions of this
chapter
shall be applicable to the type of insurance which that was
the subject of the order under subsection (1).
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 94th Legislature are
enacted into law:
(a) Senate Bill No. 1023.
(b) Senate Bill No. 1025.
(c) Senate Bill No. 1026.