HB 5854 Summary

• Changes terminology from "Commissioner" to "Director" and from "Office of Financial and Insurance Services" to "Department of Insurance and Financial Services" throughout the insurance code.

• Modifies insurance certificate requirements by eliminating the need for two certificates per vehicle and instead requiring insurers to supply vehicle identification number information to the Secretary of State in electronic format no more frequently than every 14 days for private passenger nonfleet automobiles.

• Transfers assigned claims plan administration from the Secretary of State to the Michigan Automobile Insurance Placement Facility, with the facility maintaining and adopting the plan subject to director approval.

• Clarifies eligibility requirements for assigned claims plan benefits, establishing that claimants must demonstrate after due diligence that no applicable insurance exists, applicable insurance cannot be identified, or identified insurance is inadequate due to insurer insolvency.

• Establishes procedures for claim assignment, payment, reimbursement to insurers including interest based on 90-day Treasury bill rates, and enforcement of third-party indemnity rights through the Michigan Automobile Insurance Placement Facility.