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MI HB5528

Bill

Official Source

Status

Introduced

5/6/2014

Primary Sponsor

Thomas Stallworth

Click for details

Origin

House of Representatives

97th Legislature

AI Summary

  • Adds Section 2111f to the Insurance Code of 1956 requiring automobile insurers to maintain a minimum claims-to-premium ratio of 80% annually.

  • Mandates that if an insurer pays less than 80% of collected premiums toward claims in a calendar year, it must refund the difference to policyholders.

  • Requires refunds be distributed to policy holders on a pro rata basis.

  • Applies to all insurers writing automobile insurance policies subject to the chapter.

Legislative Description

Insurance; no-fault; payment of claims; require refund if certain percentage of premiums are not paid for claims. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 2111f.

Insurance, no-fault

Last Action

Printed Bill Filed 05/07/2014

5/8/2014

Committee Referrals

Insurance5/6/2014

Full Bill Text

No bill text available