HB-4778, As Passed House, November 13, 2008















May 17, 2007, Introduced by Rep. Farrah and referred to the Committee on Commerce.


     A bill to amend 1956 PA 218, entitled


"The insurance code of 1956,"


(MCL 500.100 to 500.8302) by adding chapter 21A.






     Sec. 2151. As used in this chapter:


     (a) "Insurer" means an automobile insurer and includes an


entity that is an affiliate of the insurer.


     (b) "Repair facility" means a motor vehicle repair facility as


defined in section 2 of the motor vehicle service and repair act,


1974 PA 300, MCL 257.1302.


     Sec. 2153. Except as provided in this chapter, an insurer may


not own or acquire an ownership interest in a repair facility.


     Sec. 2155. (1) An insurer that has an ownership interest in a

House Bill No. 4778 as amended November 13, 2008

repair facility on the effective date of the amendatory act that


added this section shall divest itself of any ownership interest in


that facility by December 31, 2008.


     (2) During the period in which the insurer maintains its


interest in the repair facility before the divestiture required


under subsection (1), the insurer shall do all of the following:


     (a) Post a notice in not less than 18-point font at the


customer entrance of each of the repair facilities in which the


insurer has an ownership interest stating:


     "This repair facility is owned in whole or in part by (insert


name of insurer). You are hereby notified that you are entitled to


seek repairs at a repair facility of your choice.".


     (b) Shall notify an insured in writing at the time a policy is


delivered, issued for delivery, or renewed of the insurer's


ownership interest and that the insured is entitled to seek repairs


at a repair facility of his or her choice.


     (c) Shall notify an insured verbally at the time a claim is


filed of the insured's ownership interest and that the insured is


entitled to seek repairs at a repair facility of his or her choice.


     Sec. 2157. (1) A person, including, but not limited to, a


repair facility, aggrieved by a violation of this chapter by an


insurer may bring an action for injunctive or other appropriate


relief to compel the insurer to comply with this chapter.


     (2) A plaintiff who prevails in an action under this section


is entitled to recover reasonable attorney fees and court costs.

     [Sec. 2159. An insurer shall not develop a list of preferred repair

 facilities or in any other way convey to an insured information regarding which repair facility the insured should seek repairs FROM in the event of a claim.]