Senate Bill 161 Summary

• Amends the Insurance Code to modify the Catastrophic Claims Association by increasing board size from 5 to 6 directors, changing the insurance commissioner from an ex officio non-voting member to a voting member.

• Requires the association's board meetings to comply with the Open Meetings Act (1976 PA 267) and subjects board documents to the Freedom of Information Act (1976 PA 442).

• Mandates annual independent audits by a certified public accountant appointed by the commissioner, with audit reports delivered to the commissioner and legislative standing committees on insurance.

• Establishes biennial adjustments to the catastrophic claims threshold beginning July 1, 2013, increasing by the lesser of 6% or the consumer price index and rounding to the nearest $5,000, with the base threshold of $500,000 for policies issued July 1, 2011 to June 30, 2013.

• Requires commissioner approval of association premium amounts charged to members, allowing disapproval of any amount deemed excessive.

• Effectiveness is conditional on passage and enactment of Senate Bill 160 of the 95th Legislature.