HOUSE BILL No. 5774

 

April 20, 2004, Introduced by Reps. Woodward, Gieleghem, Vagnozzi, Minore, Bieda, Gleason and Lipsey and referred to the Committee on Insurance.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1956 PA 218, entitled                                             

                                                                                

    "The insurance code of 1956,"                                               

                                                                                

    by amending section 3101a (MCL 500.3101a), as amended by 1996 PA            

                                                                                

    456.                                                                        

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3101a.  (1) An insurer, in conjunction with the                        

                                                                                

2   issuance of an automobile insurance policy, as defined in section           

                                                                                

3   3303, shall provide 2 certificates of insurance for each insured            

                                                                                

4   vehicle.  The insurer shall mark 1 of the certificates as the               

                                                                                

5   secretary of state's copy, which copy, except as otherwise                  

                                                                                

6   provided in subsection (2), shall be filed with the secretary of            

                                                                                

7   state by the policyholder upon application for a vehicle                    

                                                                                

8   registration.  The secretary of state shall  not  maintain the              

                                                                                

9   certificate of insurance received under this subsection on file.            

                                                                                

10  An insurer shall notify the secretary of state if a policy                  

                                                                                


                                                                                

1   expires without being renewed or is terminated or if a                      

                                                                                

2   policyholder cancels his or her automobile insurance policy.  The           

                                                                                

3   notice of expiration, termination, or cancellation shall contain            

                                                                                

4   all of the following information:                                           

                                                                                

5       (a) The vehicle identification number.                                      

                                                                                

6       (b) The name and address of the insurer.                                    

                                                                                

7       (c) The insurance policy number.                                            

                                                                                

8       (d) The time and date of expiration, termination, or                        

                                                                                

9   cancellation.                                                               

                                                                                

10      (2) The secretary of state shall accept as proof of vehicle                 

                                                                                

11  insurance a transmission, in the format required by the secretary           

                                                                                

12  of state, of the insured vehicle's vehicle identification                   

                                                                                

13  number.  Vehicle identification numbers received by the secretary           

                                                                                

14  of state under this subsection are confidential and shall not be            

                                                                                

15  disclosed to any person except  pursuant to an order  by order of           

                                                                                

16  a court of competent jurisdiction in connection with a claim or             

                                                                                

17  fraud investigation or prosecution.  The transmission to the                

                                                                                

18  secretary of state of a vehicle identification number is proof of           

                                                                                

19  insurance to the secretary of state for motor vehicle                       

                                                                                

20  registration purposes only and is not evidence that a policy of             

                                                                                

21  insurance actually exists between an insurer and an individual.             

                                                                                

22      (3) A person who fails to supply information to the secretary               

                                                                                

23  of state or who supplies false information to the secretary of              

                                                                                

24  state under this section or who issues or uses an altered,                  

                                                                                

25  fraudulent, or counterfeit certificate of insurance is guilty of            

                                                                                

26  a misdemeanor punishable by imprisonment for not more than 1                

                                                                                

27  year, or a fine of not more than $1,000.00, or both.                        


                                                                                

1       Enacting section 1.  This amendatory act does not take                      

                                                                                

2   effect unless Senate Bill No. ________ or House Bill No. 5773               

                                                                                

3   (request no. 05602'03) of the 92nd Legislature is enacted into              

                                                                                

4   law.