SENATE BILL NO. 11

January 15, 2019, Introduced by Senator WOJNO and referred to the Committee on Insurance and Banking.

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

(MCL 500.100 to 500.8302) by adding section 3104a.

the people of the state of michigan enact:

Sec. 3104a. (1) By June 1, 2019, the catastrophic claims association created under section 3104 shall return not less than $1,200,000,000.00 of excess premium collected to its members in proportion to the premiums paid by each member.

(2) An association member shall rebate to its insureds under policies that provide the security required under section 3101(1) or 3103(1), or both, on a pro rata basis the money received under subsection (1).

(3) For the premium periods of July 1, 2019 to June 30, 2021, the catastrophic claims association shall not assess its members a premium based on an average premium per car of more than $6.00.

(4) For a group self-insurance pool providing motor vehicle security under section 9 of 1951 PA 35, MCL 124.9, the catastrophic claims association shall directly refund the pro rata share of the amount refunded under subsection (1).

(5) As used in this section, "excess premium" means premiums paid by catastrophic claims association members in excess of actual and anticipated covered claims and expenses of the catastrophic claims association.