September 21, 2016, Introduced by Rep. Barrett and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 240 and 438 (MCL 500.240 and 500.438),
section 240 as amended by 2000 PA 252 and section 438 as amended
by 1994 PA 227.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 240. (1) The commissioner director shall
collect, and
2 the person affected shall pay to the commissioner, director, the
3 following fees:
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(a) Filing fee for original authorization to |
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transact insurance or health maintenance organization |
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business in this state, for each domestic, foreign, |
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and alien insurer, and each health maintenance |
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organization........................................... |
$ 25.00. |
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(b) |
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amendatory act that amended this subdivision, filing |
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fee for annual statement of foreign and alien insurers, |
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each year, subject to section 476a..................... |
$ 25.00. |
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(c) |
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nonresident, payable by insurer or health maintenance |
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organization
so represented, for each |
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each year.............................................. |
$ 5.00. |
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(d) Application fee payable by each initial |
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applicant
for license as resident |
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nonresident
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producer, solicitor, counselor, or adjuster, not |
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transferable or refundable............................. |
$ 10.00. |
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(e) Solicitor's license, each year................ |
$ 10.00. |
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(f) Insurance counselor license, each year........ |
$ 10.00. |
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(g) Adjuster's license, each year................. |
$ 5.00. |
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(h) License examination fee, payable by applicant |
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for all subjects covered in any 1 examination, or |
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portion of an examination, for license as resident |
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solicitor, counselor, or adjuster, each examination, |
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not transferable or refundable......................... |
$ 10.00. |
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(i) Surplus lines |
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year................................................... |
$ 100.00. |
26 (2) Each An incorporated domestic insurer shall pay to the
27 attorney general, for the examination of the insurer's articles
28 of incorporation or any amendments to the articles of
29 incorporation, the sum of $25.00.
30 (3) The fees and charges for official services performed by
1 the commissioner director
or the commissioner's director's
2 deputies or employees, when collected, shall must be
turned over
3 to the state treasurer and a receipt taken. The fees and charges
4 provided for in this section shall must be
deposited in the state
5 treasury to the credit of the general fund.
6 (4) The provisions of subsection (1)(h), insofar as they
7 provide for The examination fees described in subsection (1)(h) ,
8 are applicable only if the examinations are administered by the
9 commissioner. director.
If the examinations are administered by
10 some a designated authority other than the commissioner,
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director, appropriate examination fees shall
be are payable
12 directly to the designated authority.
13 Sec. 438. (1) Each An insurer, foreign, alien,
U.S. branch,
14 or domestic, transacting business within this state, shall
15 annually, on or before March 1, prepare under oath and deposit
16 with the commissioner director
a statement concerning its affairs
17 in a form and manner as prescribed by the commissioner. director.
18 The annual statement shall must be filed on or before
March 1 of
19 the year following that covered by the statement. Upon On request
20 and for good cause shown, the commissioner director may
grant to
21 any a company reasonable extensions of the March 1 filing
date
22 for periods not to exceed 30 days. The insurer shall pay the
23 filing fee prescribed in section 240(1)(b).
24 (2) The commissioner director shall prescribe the
format and
25 content of statements that are suitable and adaptable to each
26 kind of insurer authorized by this act. The commissioner director
27 shall include requests for information upon any and all on
1 important elements of an insurer's business, including any
2 matter, condition, or requirement regulated by this act. An
3 annual statement filed by an insurer under this section shall
4 must be prepared in accordance with instructions provided by, and
5 accounting practices and procedures designated by, the
6 commissioner.director.
7 (3) The commissioner director may address
inquiries to any
8 an insurer, in relation to the insurer's activities or
9 conditions, or any matter connected with the insurer's
10 transactions. An The
insurer so addressed shall
promptly reply in
11 writing to each inquiry by the commissioner.described in this
12 subsection.
13 (4) Each A report filed with the commissioner pursuant to
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director under this section shall must be
made available to the
15 public in compliance with the freedom of information act, Act No.
16 442 of the Public Acts of 1976, being sections 15.231 to 15.246
17 of the Michigan Compiled Laws.1976 PA 442, MCL 15.231 to 15.246.
18 (5) Each An authorized insurer that fails to does not make
19 or deposit the annual statement required by this section, or
20 fails to does not reply within 30 days to an inquiry of the
21 commissioner, director,
is subject to a civil penalty of not
less
22 than $1,000.00 or more than $5,000.00, and an additional $50.00
23 for every day that the insurer fails to does not make
and deposit
24 the annual statement or reply to the inquiry. In addition, each
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an insurer that fails to does not make
and deposit an annual
26 statement, or fails to does
not make a satisfactory reply to an
27 inquiry of the commissioner, director, concerning the insurer's
1 affairs shall be is
subject to proceedings under section
436.
2 (6) The annual statement of an alien insurer shall must
3 relate only to the insurer's assets, transactions, and affairs in
4 the United States unless the commissioner director requires
5 otherwise.
6 (7) As used in this section, "U.S. branch" means that term
7 as defined in section 431.
8 Enacting section 1. This amendatory act takes effect 90 days
9 after the date it is enacted into law.