read Read

e-mail E-mailprint Print

NAMIC 2006 Survey of New State Insurance Laws Summary and Analysis

2006 SUMMARY OF NEW STATE LAWS - MICHIGAN

Michigan State Legislative Website

BILL #

CHAPTER #

ISSUE

BILL DESCRIPTION

HB 4778

183

Tort reform - miscellaneous

Relates to liability for injuries sustained by renters and users of rented non-motorized watercraft. Effective: June 12, 2006.

HB 5104

19

Motor vehicle insurance - salvage title

An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state. Effective: Nov. 9, 2006.

HB 5240

85

Motor vehicle insurance - salvage title

AN ACT to amend 1949 PA 300, entitled "An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state. Effective: Nov. 9, 2006.

HB 5245

49

Workers' compensation - benefits, claims or treatments

Relates to an examination under a workers' compensation claim, adds a licensed physician's assistant and certified nurse practitioner to list of practitioners that perform an examination of a workers' compensation claimant. Effective: March 9, 2006.

HB 5256

106

Tort reform - medical malpractice

Provides the notification procedures for the nonrenewal or cancellation of a medical malpractice insurance policy. Effective: April 7, 2006.

HB 5375

25

Tort reform - miscellaneous

Provides immunity for retired physicians providing volunteer health care for medically indigent individuals. Effective: Feb. 16, 2006.

HB 5497

109

Omnibus insurance law changes

Enacts a number of insurance department law changes. Effective: April 7, 2006.

HB 5624

55

Corporate governance - jurisdictional authority

An act to revise, consolidate, and classify the laws relating to the insurance and surety business. Effective: March 9, 2006.

HB 5862

192

Building codes

An act to create a construction code commission and prescribe its functions; to authorize the director to promulgate rules with recommendations from each affected board relating to the construction, alteration, demolition, occupancy, and use of buildings and structures. Effective: June 19, 2006.

HB 5870

208

State Regulation

Amends insurance code to reflect transfer of fire marshal from State Police to the Bureau of Fire Services in the Department of Labor and Economic Growth. Effective: June 19, 2006.

HB 6084

298

Motor vehicle insurance - commercial auto

Modifies commercial driver license requirements to conform with federal law. Effective: July 20, 2006.

HB 6175

302

Motor vehicle insurance - miscellaneous

An act defining and regulating certain installment sales of motor vehicles. Effective: July 20, 2006.

HB 6194

291

Corporate governance - company rules

Provides that the board of directors of a domestic insurer shall meet not fewer than 4 times per fiscal year in person or by means of electronic communication devices that enable all participants in the meeting to communicate with each other, provides that each director of a domestic insurer when elected or appointed, shall take and subscribe a specified oath, Requires transmission of the oath to the Insurance Commissioner for filing. Effective: July 20, 2006.

HB 6195

290

Corporate governance - company rules

Relates to certain compensation paid by domestic insurers. Effective: July 20, 2006.

HB 6196

289

Corporate governance - company rules

Provides amendments to compensation paid by a domestic insurance company to a director or officer thereof. Effective: July 20, 2006.

HB 6223

354

Guaranty fund

Provides for general amendments regarding guaranty association, relates to determination of insolvency of an insurer, provides for early access disbursements out of marshaled assets to any guaranty association or foreign guaranty association having obligations because of the insolvency, requires notice to the state insurance commissioners and associations, provides for a reserve for claims. Effective: Sept. 18, 2006.

HB 6224

355

Guaranty fund

Amends the Insurance Code of 1956, relates to guaranty associations, provides that collateral assigned to the insurer or subsequently the receiver to secure the obligations of a policyholder under a deductible agreement shall not be considered an asset of the estate and shall be maintained and administered by the receiver, includes foreign guaranty associations, relates to captive reinsurance, adjustable premiums, liquidation, claims, right of recovery and claims against an insolvent insurer's estate. Effective: Sept. 18, 2006.

HB 6225

356

Guaranty fund

Amends the Insurance Code of 1956, provides general amendments regarding guaranty associations, states that any guaranty association or foreign guaranty association has standing to appear and may intervene as a party as a matter of right or otherwise appear and participate in any court proceeding concerning the rehabilitation or liquidation of an insurer if the association may become liable to act as a result of the liquidation. Effective: Sept. 18, 2006.

HB 6226

357

Guaranty fund

Amends the Insurance Code of 1956, provides for general amendments regarding guaranty associations, deletes a passage that states that a guaranty association or foreign guaranty association shall have standing to appear in a court proceeding concerning the liquidation of an insurer if the association is or may become liable to act as a result of the liquidation. Effective: Sept. 18, 2006.

HB 6227

358

Guaranty fund

Provides for general amendments regarding guaranty associations, relates to release of certain insurer records that are office of financial and insurance service files, relates to representatives of a guaranty association or foreign guaranty association that may become obligated as a result of the insolvency of the insurer. Effective: Sept. 18, 2006.

HB 6228

359

Guaranty fund

Amends the Insurance Code of 1956, provides for general amendments regarding guaranty associations, relates to administrative tribunals, including worker's compensation proceedings, to which an insolvent insurer is a party shall be stayed for a length of time after the date a receiver is appointed, provides for a stay for each affected proceeding to provide the association with sufficient time to prepare a proper defense. Effective: Sept. 18, 2006.

HB 6229

360

Guaranty fund

Amends the Insurance Code of 1956, provides for general amendments to guaranty associations, makes technical changes, provides for levy of assessments upon all member insurers to secure funds for payment of covered claims and reasonable costs of administrating the association, relates to worker's compensation, automobile, title, fire, allied lines, farm owner's multiple peril, inland marine, earthquake and credit insurance. Effective: Sept. 18, 2006.

HB 6230

361

Guaranty fund

Amends provisions regarding guaranty associations, provides that the association may pay covered claims directly, through a servicing facility or through a contract for reinsurance or transfer of liabilities with a member insurer, provides for claims under a self-insured program, provides that such entity shall first exhaust all coverage provided by any policy or the self-insured retention of an excess insurance policy, relates to insolvent insurers and worker's disability compensation claims. Effective: Sept. 18, 2006.

HB 6231

362

Guaranty fund

Provides for general amendments to guaranty associations, relates to covered claims of an insolvent insurer, provides that a refund in less than a specified amount shall not be made for unearned premiums, excludes amounts due a reinsurer, insurer, insurance pool, underwriters, health maintenance organization or health care corporation as subrogation recovers, contributions or indemnification, provides caps for personal protection insurance benefits. Effective: Sept. 18, 2006.

HB 6232

363

Guaranty fund

Amends the Insurance Code of 1956, provides for general amendments to guaranty associations, defines an insolvent insurer against whom a final order of liquidation has been entered, provides that if the finding of insolvency is not appealed, the order of liquidation shall be considered final on the date the order was issued. Effective: Sept. 18, 2006.

HB 6233

364

Guaranty fund

Amends the Insurance Code of 1956, relates to guaranty associations, authorizes bringing actions against third party administrators, agents, attorneys and representatives of an insolvent insurer to obtain claims information, provides for court costs and attorney fees, includes all files, records and electronic data necessary for the association, or a similar association in another state, to carry out its duties, provides that the association has the absolute right through emergency equitable relief. Effective: Sept. 18, 2006.

HB 6234

365

Guaranty fund

Amends the Insurance Code of 1956, Provides that there shall be maintained within the state, by all insurers authorized to transact insurance other than life or disability insurance, except the state basic property insurance association, an association of those insurers known as the property and casualty association, requires each insurer to be a member of the association as a condition of its authority to transact insurance in the state. Effective: Sept. 18, 2006.

HB 6248

432

Tort reform - miscellaneous

Waiver of customer liability agreements; clarify as not being insurance. Effective: Oct. 15, 2006.

HR 162

Resolutions

Memorializes the United States Congress to oppose the State Modernization and Regulatory Transparency (SMART) Act.

SB 309

Identity theft - security breach

Prohibits certain acts and practices concerning identity theft; to require notification of a security breach of a database that contains certain personal information; to provide for the powers and duties of certain state and local governmental officers and entities; to prescribe penalties and provide remedies; and to repeal acts and parts of acts. Effective: July 3, 2007.

SB 541

296

Tort reform -- miscellaneous

Relates to the Revised Structured Settlement Protection Act, regulates the transfer of structured settlement rights, places conditions on the transfer of structured settlement rights, establishes a procedure for approved transfer of structured settlement rights, repeals acts and parts of acts, includes attorney costs, fees, annuities and periodic payments to settle a worker's compensation claim, provides for rights of payee to cancel the transfer agreement, requires notice of a proposed transfer. Effective: Sept. 1, 2006.

SB 779

83

Motor vehicle insurance - salvage title

An act to provide for the registration, titling, sale, transfer, and regulation of certain vehicles operated upon the public highways of this state. Effective: March 29, 2006.

SB 1134

191

Fire insurance

Provides for a state arson strike force unit and to prescribe the powers and duties of the strike force unit and the department of state police. Effective: June 19, 2006.

The information contained in this summary is not intended as a portrayal of every property/casualty-related law enacted in each state. Rather, it represents recently enacted legislation specifically identified by NAMIC State and Regulatory Affairs Staff as bearing direct relevance to those issues that represent NAMIC's National State Legislative Agenda or otherwise deemed pertinent to the interests of the majority of NAMIC members.

This summary is for use as a convenient tool for our members, and is not intended, and should not be considered to be, legal advice. Please consult your legal representatives.