HB 4097 Summary

• Creates new Section 2111f requiring automobile policies with terms less than 6 months to include the full annual catastrophic claims association premium and personal protection insurance benefits amount in the initial premium charged to the policyholder.

• Prohibits insurers from refunding the portion of initial premium payments for short-term policies that comprises the annual catastrophic claims association charge and personal protection insurance benefits, unless the policy is canceled for specified reasons listed in Section 3020(2)(c).

• Amends Section 3020 to clarify policy cancellation provisions, including that minimum retention rules do not apply when policies are canceled because the insured no longer needs required coverage or has obtained replacement coverage.

• Modifies Section 3104 to require that rates for short-term automobile policies (less than 6 months) be structured to include the full annual catastrophic claims association premium amount in the initial premium charged to policyholders.

• Updates terminology throughout, replacing "commissioner" with "director of the department" and modernizing language ("shall" to "must," "upon" to "on," etc.).