HB 5701 Summary

• Creates the Michigan Automobile Insurance Fraud and Theft Prevention Authority within the Michigan Automobile Insurance Placement Facility, effective January 1, 2013, funded by annual assessments on insurers and self-insurers not to exceed $21,000,000.00 through December 31, 2017.

• Establishes a 15-member board of directors consisting of 9 insurer representatives (allocated by market size), the insurance commissioner, attorney general, 2 law enforcement representatives, 1 prosecuting attorney representative, and 1 public member to govern the authority's operations.

• Requires the authority to provide financial support to law enforcement and prosecutorial agencies for programs reducing automobile insurance fraud and theft, and authorizes discretionary funding for education and training associations focused on fraud and theft prevention.

• Mandates insurers report automobile insurance fraud data to the authority and requires insurers to pay assessments based on their proportional share of statewide car years written; the board must preserve at least $6,000,000.00 annually for automobile theft prevention programs.

• Requires the authority to prepare and publish annual financial reports and biennial reports to the legislature detailing theft and fraud statistics, prevention programs, cost savings, and the impact of theft and fraud on insurance rates and citizens.