HOUSE BILL No. 5857

 

May 5, 2004, Introduced by Rep. Bieda 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 each month of all            

                                                                                


                                                                                

1   motor vehicles in this state that were insured with the insurer             

                                                                                

2   in the immediately preceding month and shall notify the secretary           

                                                                                

3   of state each month of any policy that, in the immediately                  

                                                                                

4   preceding month, expired without being renewed or is terminated             

                                                                                

5   or if a policyholder cancels his or her automobile insurance                

                                                                                

6   policy.  The notice to the secretary of state under this                    

                                                                                

7   subsection shall contain all of the following information:                  

                                                                                

8       (a) Vehicle identification numbers.                                         

                                                                                

9       (b) Name and address of the insurer.                                        

                                                                                

10      (c) Insurance policy numbers.                                               

                                                                                

11      (d) If applicable, the time and date of expiration,                         

                                                                                

12  termination, or cancellation of an automobile insurance policy.             

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

16  number.  Vehicle identification numbers received by the secretary           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  fraud investigation or prosecution.  The transmission to the                

                                                                                

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

                                                                                

22  insurance to the secretary of state for motor vehicle                       

                                                                                

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

                                                                                

24  insurance actually exists between an insurer and an individual.             

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

1   fraudulent, or counterfeit certificate of insurance is guilty of            

                                                                                

2   a misdemeanor punishable by imprisonment for not more than 1                

                                                                                

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