HOUSE BILL No. 5096


     September 25, 2001, Introduced by Rep. Stamas and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   (MCL 500.100 to 500.8302) by adding sections 2128 and 7307.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 2128.  (1) IF A PERSON WHO IS AN INSURED PARTY UNDER A

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      HOME INSURANCE POLICY TRANSFERS OWNERSHIP OF THE PROPERTY TO A

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      QUALIFYING TRUST, THE QUALIFYING TRUST SHALL BE CONSIDERED AN

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      INSURED PARTY UNDER THE HOME INSURANCE POLICY AND COVERAGE SHALL

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      EXTEND TO THE QUALIFYING TRUST.

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           (2) AS USED IN THIS SECTION, "QUALIFYING TRUST" MEANS A

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      TRUST THAT MEETS BOTH OF THE FOLLOWING:

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           (A) THE SETTLOR OF THE TRUST IS THE INSURED PARTY, THE

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      INSURED PARTY'S SPOUSE, OR BOTH, UNDER A HOME INSURANCE POLICY

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      COVERING PROPERTY TRANSFERRED TO THE TRUST.




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           (B) A PRESENT BENEFICIARY OF THE TRUST IS THE INSURED PARTY,

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      THE INSURED PARTY'S SPOUSE, OR BOTH, UNDER A HOME INSURANCE

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      POLICY COVERING PROPERTY TRANSFERRED TO THE TRUST.

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           SEC. 7307.  (1) IF A PERSON WHO IS AN INSURED PARTY UNDER A

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      TITLE INSURANCE POLICY TRANSFERS OWNERSHIP OF THE PROPERTY TO A

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      QUALIFYING TRUST, THE QUALIFYING TRUST SHALL BE CONSIDERED AN

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      INSURED PARTY UNDER THE TITLE INSURANCE POLICY AND COVERAGE SHALL

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      EXTEND TO THE QUALIFYING TRUST.

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           (2) AS USED IN THIS SECTION, "QUALIFYING TRUST" MEANS A

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      TRUST THAT MEETS BOTH OF THE FOLLOWING:

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           (A) THE SETTLOR OF THE TRUST IS THE INSURED PARTY, THE

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      INSURED PARTY'S SPOUSE, OR BOTH, UNDER A TITLE INSURANCE POLICY

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      COVERING PROPERTY TRANSFERRED TO THE TRUST.

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           (B) A PRESENT BENEFICIARY OF THE TRUST IS THE INSURED PARTY,

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      THE INSURED PARTY'S SPOUSE, OR BOTH, UNDER A TITLE INSURANCE

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      POLICY COVERING PROPERTY TRANSFERRED TO THE TRUST.

























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