July 16, 2003, Introduced by Senators OLSHOVE, LELAND, SCOTT, PATTERSON, JACOBS, BRATER, CLARK-COLEMAN, BERNERO, CHERRY, SCHAUER, BARCIA, BASHAM, GILBERT and CLARKE and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding section 2110b.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 2110b. (1) An automobile insurance policy and an
2 automobile insurer and its employees, agents, and adjusters shall
3 not do either of the following:
4 (a) Intimidate, induce, recommend, suggest, or require an
5 insured to use a particular person, place, shop, or entity for
6 the providing of any automobile repair service or product covered
7 by the policy.
8 (b) Intimidate, induce, recommend, suggest, or require an
9 insured to use a particular brand, type, kind, age, or condition
10 of parts for a part covered by the policy.
11 (2) An automobile insurer shall fully and promptly pay for
1 the cost of any covered automobile repair service or product less
2 any applicable deductible at not less than the prevailing or
3 generally found market price in the area for similarly situated
4 automobile repair services or products. The prevailing or
5 generally found market price in the area shall not be limited to
6 the lowest price and shall not take into consideration any
7 special price or service arrangement offered by the particular
8 person, place, shop, or entity. An automobile insurer shall not
9 fail to fully and promptly pay for the cost of any covered
10 automobile repair service or product because of an insured's
11 selection of a particular person, place, shop, or entity to
12 provide the covered automobile repair service or product.