December 5, 2013, Introduced by Senators CASPERSON, HUNE, ROBERTSON and SMITH and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding chapter 22A.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
CHAPTER 22A
Sec. 2270. As used in this chapter:
(a) "Certificate of insurance" means a document, regardless of
how titled or described, that is prepared by an insurer or
insurance producer that is a statement or summary of an insured's
property or casualty insurance coverage. Certificate of insurance
does not include a policy of insurance, insurance binder, policy
endorsement, automobile identification card, certificate issued
under a group or master policy, or evidence of coverage provided to
a lender in a lending transaction involving a mortgage, lien, deed
of trust, or other security interest in or on any real or personal
property.
(b) "Director" means the director of the department of
insurance and financial services.
(c) "Insurance" means any of the lines of authority in chapter
6.
(d) "Insurance producer" means that term as defined in section
1201.
Sec. 2271. A person shall not do any of the following:
(a) Issue or deliver a certificate of insurance that purports
to affirmatively or negatively alter, amend, or extend the coverage
provided by an insurance policy referenced in the certificate of
insurance.
(b) Prepare or issue a certificate of insurance that contains
any false or misleading information concerning an insurance policy
referenced in the certificate of insurance.
(c) Demand or require the issuance of a certificate of
insurance from an insurer, insurance producer, or policyholder that
contains any false or misleading information concerning an
insurance policy referenced in the certificate of insurance.
Sec. 2272. A person shall not issue or deliver a certificate
of insurance unless it contains the following or similar statement:
"This certificate of insurance is issued as a matter of
information only. It does not confer rights upon a person
requesting the certificate of insurance beyond what an insurance
policy expressly provides. This certificate of insurance does not
extend, amend, or alter the coverage, terms, exclusions, or
conditions afforded by an insurance policy referenced in this
certificate of insurance.".
Sec. 2273. Except as otherwise provided in an insurance
policy, a certificate of insurance does not represent an insurer's
obligation to give notice of cancellation or nonrenewal to a
person.
Sec. 2275. A person is entitled to notice of cancellation,
nonrenewal, and any similar notice concerning a policy of insurance
only if the person has notice rights under the terms of a policy of
insurance or an endorsement to a policy of insurance. The terms and
conditions of a notice described in this section are governed by
the policy of insurance or endorsement. A certificate of insurance
does not alter the terms and conditions of the notice.
Sec. 2277. If the director finds that a person has violated
this chapter, after an opportunity for a hearing under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, the director shall reduce the findings and decision to
writing and shall issue and cause to be served upon the person
charged with the violation a copy of the findings and an order
requiring the person to cease and desist from the violation. In
addition, the director may order any of the following:
(a) Payment of a civil fine of not more than $500.00 for each
violation. However, if the person knew or reasonably should have
known that he or she was in violation of this chapter, the director
may order the payment of a civil fine of not more than $2,500.00
for each violation. An order of the director under this section
shall not require the payment of civil fines exceeding $25,000.00.
A fine collected under this subdivision shall be turned over to the
state treasurer and credited to the general fund of this state.
(b) The director may apply to the circuit court of Ingham
county for an order of the court enjoining a violation of this
chapter.