SENATE BILL No. 1064

 

 

January 14, 2010, Introduced by Senators SCOTT, JACOBS, CLARKE, BRATER, GLEASON, THOMAS and HUNTER and referred to the Committee on Economic Development and Regulatory Reform.

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

(MCL 500.100 to 500.8302) by adding section 255.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 255. (1) The make insurance affordable and accessible

 

(MIAA) task force is created within the office of financial and

 

insurance regulation.

 

     (2) The MIAA task force shall consist of the commissioner of

 

the office of financial and insurance regulation, 1 member of the

 

senate appointed by the senate majority leader, 1 member of the

 

senate appointed by the senate minority leader, 1 member of the

 

house of representatives appointed by the speaker of the house of

 

representatives, 1 member of the house of representatives appointed

 

by the minority leader of the house of representatives, and the

 

following 6 members, appointed by the governor:

 

     (a) Three members representing the general public, at least 1


 

of whom shall reside in a county with a population of 900,000 or

 

more.

 

     (b) One member representing automobile insurers with 15% or

 

more of the automobile insurance market in this state.

 

     (c) One member representing automobile insurers with less than

 

15% but more than 5% of the automobile insurance market in this

 

state.

 

     (d) One member representing automobile insurers with 5% or

 

less of the automobile insurance market in this state.

 

     (3) The members appointed to the MIAA task force shall be

 

appointed within 14 days after the effective date of this section.

 

     (4) If a vacancy occurs on the MIAA task force, an appointment

 

for the unexpired term shall be made in the same manner as the

 

original appointment.

 

     (5) The governor may remove a member of the MIAA task force

 

for incompetency, dereliction of duty, malfeasance, misfeasance, or

 

nonfeasance in office, or any other good cause.

 

     (6) The first meeting of the MIAA task force shall be called

 

not later than 24 days after the effective date of this section. At

 

the first meeting, the members of the MIAA task force shall elect

 

from among its members a chairperson and other officers as they

 

consider necessary or appropriate. After the first meeting, the

 

MIAA task force shall meet at least monthly, or more frequently at

 

the call of the chairperson or if requested by 6 or more members.

 

     (7) A majority of the members of the MIAA task force

 

constitute a quorum for the transaction of business at a meeting of

 

the MIAA task force. A majority of the members present and serving


 

are required for official action of the MIAA task force.

 

     (8) The business that the MIAA task force may perform shall be

 

conducted at a public meeting of the MIAA task force held in

 

compliance with the open meetings act, 1976 PA 267, MCL 15.261 to

 

15.275.

 

     (9) A writing prepared, owned, used, in the possession of, or

 

retained by the MIAA task force in the performance of an official

 

function is subject to the freedom of information act, 1976 PA 442,

 

MCL 15.231 to 15.246.

 

     (10) Members of the MIAA task force shall serve without

 

compensation. However, members of the MIAA task force may be

 

reimbursed for their actual and necessary expenses incurred in the

 

performance of their official duties as members of the MIAA task

 

force.

 

     (11) The MIAA task force shall examine the affordability and

 

availability of automobile insurance in all areas of the state. In

 

making this examination, the MIAA task force shall use the

 

information received from the office of financial and insurance

 

regulation most recent data call and shall measure average

 

automobile insurance premiums relative to average family income in

 

each county in the state.

 

     (12) The MIAA task force shall examine ways to increase the

 

affordability and availability of automobile insurance in all areas

 

of the state. In making this examination, the MIAA task force shall

 

examine and report on at least all of the following:

 

     (a) How automobile insurance is marketed in the state and the

 

availability of all automobile insurance in all markets of the


 

state.

 

     (b) How automobile insurance is priced in the state,

 

including, but not limited to, all of the following:

 

     (i) Use of territorial rating.

 

     (ii) Use of credit scoring and other premium discounts.

 

     (iii) Use of driving records and other classification factors.

 

     (c) Automobile insurance loss ratios and profit margins.

 

     (d) Average cost of claims.

 

     (e) Cost of mandatory benefits.

 

     (f) Other methods to reduce automobile insurance premiums,

 

including, but not limited to, group pooling and insurance

 

reciprocal exchanges.

 

     (13) The MIAA task force shall report to the senate and house

 

of representatives standing committees on insurance issues on the

 

examinations conducted pursuant to this section and shall make

 

findings and recommendations based on those examinations by not

 

later than 1 year after the effective date of this section.