HOME OR TITLE INSURANCE: ALLOW CERTAIN TRANSFERS
House Bill 5096
Sponsor: Rep. Tony Stamas
Committee: Insurance and Financial Services
Complete to 5-4-02
A SUMMARY OF HOUSE BILL 5096 AS INTRODUCED 9-25-01
The bill would add virtually identical provisions to Chapter 21, entitled "Automobile and Home Insurance" and Chapter 73, entitled "Title Insurance", of the Insurance Code. Under the bill, if a person who was an insured party under a home insurance policy or title insurance policy transferred ownership of the property to a qualifying trust, the qualifying trust would be considered an insured party under the policy and coverage would extend to the qualifying trust. "Qualifying trust" would mean a trust that met both of the following:
· The settlor of the trust was the insured party, his or her spouse, or both, under a home insurance or title insurance policy covering property transferred to the trust.
· A present beneficiary of the trust was the insured party, his or her spouse, or both, under a home insurance or title insurance policy covering property transferred to the trust.
MCL 500.2128 and 500.7307
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.