February 13, 2018, Introduced by Senator ZORN and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 3101a (MCL 500.3101a), as amended by 2014 PA
419.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
3101a. (1) Except as otherwise provided in this section,
an
insurer, in conjunction with the issuance of an 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
copy, except as otherwise provided in this section, 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.
(1) (2)
Beginning December 30, 2011, an An
insurer, in
conjunction with the issuance of an automobile insurance policy,
shall provide to the insured 1 certificate of insurance for each
insured vehicle, and, subject to subsection (6), for private
passenger nonfleet automobiles listed on the policy shall supply to
the
secretary of state , in the format and timeline as required by
the
secretary of state, which shall not be required more frequently
than
every 14 days, the automobile
insurer's name, the name of the
named insured, the named insured's address, the vehicle
identification
number for each such vehicle listed on the policy,
and the policy number. The insurer shall transmit the information
required under this subsection in a format as required by the
secretary of state. The secretary of state shall not require the
information to be transmitted more frequently than every 14 days.
(2) Until December 31, 2018, or until the information is no
longer supplied to the secretary of state as provided in subsection
(6), whichever is earlier, the secretary of state shall provide
policy
information received under this subsection (1) to
the
department
of community health and
human services as required for
the
department of community health and
human services to comply
with
2006 PA 593, MCL 550.281 to 550.289. In determining the format
under
this subsection, the secretary of state shall consult with
insurers.
As used in this subsection, "private passenger nonfleet
automobile"
means that term as defined in section 3303.
(3) The secretary of state shall accept as proof of vehicle
insurance a transmission of the insured vehicle's vehicle
identification number. Policy information submitted by an insurer
and received by the secretary of state under this section is
confidential, is not subject to the freedom of information act,
1976 PA 442, MCL 15.231 to 15.246, and shall not be disclosed to
any
person except the department of community health and human
services for purposes of 2006 PA 593, MCL 550.281 to 550.289, or
pursuant to an order by 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.
(4) 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.
(5)
The department of community health and human services
shall report to the senate and house of representatives
appropriations committees and standing committees concerning
insurance issues on the number of claims and total dollar amount
recovered
from automobile insurers pursuant to under 2006 PA 593,
MCL 550.281 to 550.289. The reports required by this subsection
shall
must be given to the appropriations committees and
standing
committees concerning insurance issues by December 30 of each year
through
December 30, 2018 and shall must
cover the preceding 12-
month period.
(6) The requirement under subsection (1) that an insurer
supply information to the secretary of state does not apply after
the director certifies, by a certification posted on the department
website, that the electronic insurance verification system
established under the real-time electronic insurance verification
act is operational.
(7) As used in this section:
(a) "Automobile insurance" means that term as defined in
section 3303.
(b) "Private passenger nonfleet automobile" means that term as
defined in section 3303.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.819
of the 99th Legislature is enacted into law.