Bill Summary – FastDemocracy

SENATE BILL NO. 1072
     November 07, 2024, Introduced by Senators WEBBER and SINGH and referred to the Committee
       on Regulatory Affairs.
          A bill to amend 1956 PA 218, entitled
    "The insurance code of 1956,"
    by amending section 1201 (MCL 500.1201), as amended by 2018 PA 449.
                     THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 1201. As used in this chapter:
       (a) "Agent" except as provided in section 1243 means an
 insurance producer.
       (b) "Agent of the insured" means an insurance producer who is
 not an appointed insurance producer of the insurer with which the
 insurance policy is placed. An agent of the insured is treated as
 representing the insured or the insured's beneficiary and not the
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 insurer.
       (c) "Agent of the insurer" means an insurance producer who
 sells, solicits, or negotiates an application for insurance as a
 representative of the insurer and not the insured or the insured's
 beneficiary.
       (d) "Business entity" means a corporation, association,
 partnership, limited liability company, limited liability
 partnership, or other legal entity.
       (e) "Home state", except as provided in section 1224, means
 the District of Columbia or any state or territory of the United
 States in which an insurance producer maintains his or her
 principal place of residence or principal place of business and is
 licensed to act as an insurance producer.
       (f) "Insurance" means any of the lines of authority in chapter
 6.
       (g) "Insurance producer" means a person required to be
 licensed under the laws of this state to sell, solicit, or
 negotiate insurance.
       (h) "License" means a document issued by the director
 authorizing a person to act as an insurance producer for the
 qualifications specified in the document. The license itself does
 not create any actual, apparent, or inherent authority in the
 holder to represent or commit an insurer.
       (i) "Limited line credit insurance" includes credit life,
 credit disability, credit property, credit unemployment,
 involuntary unemployment, mortgage life, mortgage guaranty,
 mortgage disability, guaranteed automobile protection insurance,
 and any other form of insurance offered in connection with an
 extension of credit that is limited to partially or wholly
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 extinguishing that credit obligation that the director determines
 should be designated a form of limited line credit insurance.
       (j) "Limited line credit insurance producer" means a person
 who sells, solicits, or negotiates 1 or more forms of limited line
 credit insurance coverage to individuals through a master,
 corporate, group, or individual policy.
       (k) "Limited lines insurance" means any of the following:
       (i) Marine insurance as defined in section 614.
       (ii) Credit insurance as described in section 624(1)(e).
       (iii) Surety and fidelity insurance as defined in section 628.
       (iv) Legal expense insurance as defined in section 618.
       (v) Livestock insurance as described in section 624(1)(g).
       (vi) Malpractice insurance as described in section 624(1)(h).
       (vii) Plate glass insurance as described in section 624(1)(c).
       (viii) Any other miscellaneous insurance described in section
 624(1)(i).
       (ix) Portable electronics insurance as defined in section 1292.
       (x) (ix) Any other line of insurance that the director
 considers necessary to recognize to comply with section 1206a(5).
       (l) "Limited lines producer" means a person authorized by the
 director to sell, solicit, or negotiate limited lines insurance.
       (m) "Negotiate" means the act of conferring directly with or
 offering advice directly to a purchaser or prospective purchaser of
 a particular contract of insurance concerning any of the
 substantive benefits, terms, or conditions of the contract, if the
 person engaged in that act either sells insurance or obtains
 insurance from insurers for purchasers.
       (n) "Sell" means to exchange a contract of insurance by any
 means, for money or its equivalent, on behalf of an insurance
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 company.
       (o) "Solicit" means attempting to sell insurance or asking or
 urging a person to apply for a particular kind of insurance from a
 particular company.
       (p) "Terminate" means the cancellation of the relationship
 between an insurance producer and the insurer or the termination of
 a producer's authority to transact insurance.
       Enacting section 1. This amendatory act does not take effect
 unless all of the following bills of the 102nd Legislature are
 enacted into law:
       (a) Senate Bill No. 1069.
12
       (b) Senate Bill No. 1070.
14
       (c) Senate Bill No. 1071.
16
       (d) Senate Bill No. 1073.
18
       (e) Senate Bill No. 1074.
20
       (f) Senate Bill No. 1075.
22
       (g) Senate Bill No. 1076.
24
       (h) Senate Bill No. 1077.
26
       (i) Senate Bill No. 1078.
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Statutes affected: 
Senate Introduced Bill: 500.1201