March 14, 2006, Introduced by Reps. Polidori, Farhat, Kolb, Taub, Brown, Hood, Marleau, Hansen, Caswell, Gaffney, Hildenbrand, Kahn, Nofs, Caul, Sheltrown, Baxter, Whitmer, Farrah, Byrnes, Huizenga, Stahl, Proos, Rocca, Garfield, Sak, Gleason, Pastor, Stewart, Jones, Angerer, Booher, Gillard, McDowell, Byrum, Zelenko, Vagnozzi, Alma Smith, Lipsey, Nitz, Mortimer, Ball, Amos, Brandenburg, Bieda, Moolenaar, Stakoe, Wenke, David Law, Mayes, Pavlov, Palsrok and Cheeks and referred to the Committee on Appropriations.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 3010 (MCL 500.3010), as added by 2000 PA 413.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3010. (1) Notwithstanding any other provision of this
act, an automobile insurer shall not pay a claim of $2,000.00 or
more for loss or damage caused by fire or explosion to an insured
motor vehicle until a report under subsection (2) has been
submitted and the insurer has received from the insured a copy of
the report.
(2) If an insured motor vehicle suffers loss or damage caused
by fire or explosion, the insured shall submit to the fire or law
enforcement authority designated by the city, village, or township
a
report prescribed by the state fire marshal office of financial
and insurance services in conjunction with the bureau of fire
services created in section 1b of the fire prevention code, 1941 PA
207, MCL 29.1b, that requires information concerning the motor
vehicle fire or explosion.
(3) This section does not apply to accidental fires or
explosions as determined by the insurer or the fire or law
enforcement authority designated by the city, village, or township.
If the insurer or the fire or law enforcement authority designated
by the city, village, or township determines that the fire or
explosion may not be accidental, the insurer or the fire or law
enforcement authority designated by the city, village, or township
shall notify the insured of the requirement for a report under this
section by not later than 30 days after the determination by the
insurer or the fire or law enforcement authority designated by the
city, village, or township.
(4) This section applies only if the fire or law enforcement
authority responsible for investigating the fire or explosion is
located in a city, village, or township described in subsection (8)
and if the city, village, or township, pursuant to a resolution by
its governing body, notifies the commissioner in writing of both of
the following:
(a) That the city, village, or township has elected to receive
the reports prepared under subsection (2).
(b) The name and address of the fire or law enforcement
authority designated by the city, village, or township to receive
reports prepared under subsection (2).
(5) The commissioner shall prepare and distribute a list of
all cities, villages, and townships that have elected to apply this
section to all insurance companies transacting automobile insurance
in this state.
(6) A city, village, or township may be added to the list
prepared under subsection (5) by submitting a written request
containing the information required under subsection (4) to the
commissioner. If a written request is received, the commissioner
shall prepare and distribute an amended list indicating the
addition. The addition shall be effective on the date specified by
the commissioner in the amended list. The commissioner shall notify
the city, village, township, and all insurers transacting
automobile insurance in this state of the effective date of an
addition,
which shall be effective not less than 30 days after
receipt of the notice by the insurance company. This section does
not apply to any loss that occurred before the effective date of
the addition.
(7) A city, village, or township may request to be deleted
from the list or may cease to apply this section for a period of
not less than 6 months upon not less than 30 days' written notice
to the commissioner. After receipt of a request to be deleted from
the list, the commissioner shall prepare and distribute an
amendment to the list indicating the deletion. The deletion shall
be effective on the date specified by the commissioner in the
amendment. The commissioner shall notify the city, village,
township, and all insurers transacting automobile insurance in this
state of the effective date of a deletion which shall be effective
not less than 30 days after receipt of the notice by the insurance
company. A city, village, or township shall continue to apply this
section to any loss that occurred before the effective date of the
deletion, notwithstanding the deletion.
(8) A city, village, or township may elect to apply this
section as provided in subsection (4) and as follows:
(a) If the city, village, or township is located in a county
with a population of 425,000 or more.
(b) If the city, village, or township is located in a county
with a population of less than 425,000 but the city, village, or
township has a population of 50,000 or more.
(9) There is no liability on the part of, and a cause of
action does not arise against, an insurer or an agent or employee
of an insurer for withholding money in the course of complying with
or attempting to comply with this section.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 1133 or House Bill No.____ (request no.
03197'05 ***) of the 93rd Legislature is enacted into law.