September 6, 2007, Introduced by Senators ALLEN, GARCIA, RICHARDVILLE, PAPPAGEORGE, BIRKHOLZ, KAHN, JELINEK, VAN WOERKOM, CROPSEY, HARDIMAN, GILBERT, PATTERSON, CASSIS, McMANUS, KUIPERS, OLSHOVE, JANSEN, SWITALSKI, STAMAS, JACOBS, BROWN, CHERRY, BARCIA, GLEASON, WHITMER, SANBORN, BASHAM, BISHOP, ANDERSON, SCHAUER, HUNTER, SCOTT, CLARK-COLEMAN and CLARKE and referred to the Committee on Senior Citizens and Veterans Affairs.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
(MCL 500.100 to 500.8302) by adding section 4003.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 4003. (1) An individual life insurance policy shall not
lapse, terminate, or be forfeited for nonpayment of premiums or
interest or indebtedness on a premium if protection is applied for
and granted pursuant to section 401 to 409 of the soldiers' and
sailors' civil relief act of 1940, 50 USC App. 540 to 549.
(2) In addition to any other penalty that may be provided by
law, if the commissioner finds that a person has violated this
section, after an opportunity for a hearing pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, the commissioner shall reduce the findings and decision to
writing and may order the payment of a civil fine of not more than
$2,000.00 for each violation. A fine collected under this
subsection shall be deposited into the military family relief fund
created in section 3 of the military family relief fund act, 2004
PA 363, MCL 35.1213.
(3) As used in this section, "individual life insurance
policy" means "policy" as defined in section 401 of the soldiers'
and sailors' civil relief act of 1940, 50 USC App. 540.