SB 1143 Summary

• Adds subsection (8) to MCL 500.3020 requiring that the portion of paid premiums reflecting catastrophic claims association assessments shall not be refunded to insureds upon policy cancellation.

• Modifies MCL 500.3104 to require catastrophic claims association assessment premiums charged to insureds be included entirely in the first billing for new or renewed policies, collected as a single nonrefundable payment.

• Prohibits insurers from allowing the association assessment portion to be paid in installments or financed by the insured.

• Requires insurers to pay the collected assessment portion directly to the catastrophic claims association.

• Establishes that association assessment amounts are recognized in rate-making procedures similar to expenses and premium taxes.