HOUSE BILL No. 5857


     May 30, 2000, Introduced by Reps. DeHart, Kelly, Kuipers, Richardville and Hale and referred to the Committee on Insurance
and Financial Services.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 2110a (MCL 500.2110a), as added by 1996 PA

   514, and by adding section 3133.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 2110a.  If uniformly applied to all its insureds, an

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      insurer may establish and maintain a premium discount plan uti-

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      lizing factors in addition to those permitted by section 2111 for

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      insurance if the plan is consistent with the purposes of this act

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      and reflects reasonably anticipated reductions in losses or

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      expenses.  This section does not affect benefits or obligations

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      required under chapter 31.  Nothing in this section authorizes an

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      insurer to offer or prohibits an insurer from offering premium

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      discount plans concerning  any of the following:  (a) Health 




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      HEALTH care services, health care providers, or health care

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      facilities.

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            (b) Automobile repair providers.

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           (c) Materials used in the repair of an automobile. 

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           SEC. 3133.  (1) AN AUTOMOBILE INSURANCE POLICY AND AN AUTO-

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      MOBILE INSURER AND ITS EMPLOYEES, AGENTS, AND ADJUSTERS SHALL NOT

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      DO EITHER OF THE FOLLOWING:

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           (A) INTIMIDATE, INDUCE, RECOMMEND, SUGGEST, OR REQUIRE AN

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      INSURED TO USE A PARTICULAR PERSON, PLACE, SHOP, OR ENTITY TO

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      PROVIDE ANY AUTOMOBILE REPAIR OR GLASS REPLACEMENT SERVICE OR

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      PRODUCT COVERED BY THE POLICY.

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           (B) INTIMIDATE, INDUCE, RECOMMEND, SUGGEST, OR REQUIRE AN

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      INSURED TO USE A PARTICULAR BRAND, TYPE, KIND, AGE, OR CONDITION

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      OF PARTS FOR A PART COVERED BY THE POLICY.

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           (2) AN AUTOMOBILE INSURER SHALL FULLY AND PROMPTLY PAY FOR

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      THE COST OF ANY COVERED AUTOMOBILE REPAIR OR GLASS REPLACEMENT

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      SERVICE OR PRODUCT LESS ANY APPLICABLE DEDUCTIBLE AT NOT LESS

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      THAN THE PREVAILING OR GENERALLY FOUND MARKET PRICE IN THE AREA

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      FOR SIMILARLY SITUATED AUTOMOBILE REPAIR OR GLASS REPLACEMENT

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      SERVICES OR PRODUCTS.  THE PREVAILING OR GENERALLY FOUND MARKET

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      PRICE IN THE AREA SHALL NOT BE LIMITED TO THE LOWEST PRICE AND

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      SHALL NOT TAKE INTO CONSIDERATION ANY SPECIAL PRICE OR SERVICE

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      ARRANGEMENT OFFERED BY THE PARTICULAR PERSON, PLACE, SHOP, OR

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      ENTITY.  AN AUTOMOBILE INSURER SHALL DISCLOSE TO EACH INSURED HIS

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      OR HER RIGHT TO CHOOSE ANY AUTOMOBILE REPAIR OR GLASS REPLACEMENT

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      FACILITY AND SHALL NOT FAIL TO FULLY AND PROMPTLY PAY FOR THE

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      COST OF ANY COVERED AUTOMOBILE REPAIR OR GLASS REPLACEMENT



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      SERVICE OR PRODUCT BECAUSE OF AN INSURED'S SELECTION OF A

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      PARTICULAR PERSON, PLACE, SHOP, OR ENTITY TO PROVIDE THE COVERED

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      AUTOMOBILE REPAIR OR GLASS REPLACEMENT SERVICE OR PRODUCT.


















































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