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

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4778

 

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.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

CHAPTER 21A. INSURER INTERESTS IN REPAIR FACILITIES

 

     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.]