HB-4636, As Passed House, September 29, 2015

SUBSTITUTE FOR

HOUSE BILL NO. 4636

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending section 1202 (MCL 500.1202), as amended by 2014 PA 150.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1202. (1) This chapter ~~shall~~ does not ~~be construed to~~

require an insurer to obtain an insurance producer license. As used

in this section, the term "insurer" does not include an insurer's

officers, directors, employees, subsidiaries, or affiliates.

(2) A license as an insurance producer is not required of any

of the following:

(a) An officer, director, or employee of an insurer or of an

insurance producer, if the officer, director, or employee does not

receive any commission on policies written or sold to insure risks

residing, located, or to be performed in this state and meets 1 or

more of the following:

(i) The officer's, director's, or employee's activities are

executive, administrative, managerial, clerical, or a combination

of these, and are only indirectly related to the sale,

solicitation, or negotiation of insurance.

(ii) The officer's, director's, or employee's function relates

to underwriting, loss control, inspection, or the processing,

adjusting, investigating, or settling of a claim on a contract of

insurance.

(iii) The officer, director, or employee is acting in the

capacity of a special agent or agency supervisor assisting

insurance producers if the person's activities are limited to

providing technical advice and assistance to licensed insurance

producers and do not include the sale, solicitation, or negotiation

of insurance.

(b) A person who performs and receives no commission for any

of the following services:

(i) Securing and furnishing information for the purpose of

group life insurance, group property and casualty insurance, group

annuities, or group or blanket accident and health insurance.

(ii) Securing and furnishing information for the purpose of

enrolling individuals under plans, issuing certificates under

plans, or otherwise assisting in administering plans.

(iii) Performing administrative services related to mass

marketed property and casualty insurance.

employees, or the trustees of an employee trust plan, to the extent

that the employers, officers, employees, directors, or trustees are

engaged in the administration or operation of a program of employee

benefits for the employer's or association's own employees or the

employees of its subsidiaries or affiliates, which program involves

the use of insurance issued by an insurer, if the employers,

associations, officers, directors, employees, or trustees are not

in any manner compensated, directly or indirectly, by the company

issuing the contracts.

(d) Employees of insurers or organizations employed by

insurers who are engaging in the inspection, rating, or

classification of risks, or in the supervision of the training of

insurance producers and who are not individually engaged in the

sale, solicitation, or negotiation of insurance.

(e) A person whose activities in this state are limited to

advertising without the intent to solicit insurance in this state

through communications in printed publications or other forms of

electronic mass media, the distribution of which is not limited to

residents of ~~the~~ this state, if the person does not sell, solicit,

or negotiate insurance that would insure risks residing, located,

or to be performed in this state.

(f) A person who is not a resident of this state who sells,

solicits, or negotiates a contract of insurance for commercial

property and casualty risks to an insured with risks located in

more than 1 state insured under that contract, if the person is

otherwise licensed as an insurance producer to sell, solicit, or

negotiate that insurance in the state where the insured maintains

its principal place of business and the contract of insurance

insures risks located in that state.

(g) A salaried full-time employee who counsels or advises his

or her employer concerning the insurance interests of the employer

or of the subsidiaries or business affiliates of the employer, if

the employee does not sell or solicit insurance or receive a

commission.

(h) A person whose only sale of insurance is for travel or

auto-related insurance sold in connection with and incidental to

the rental of a motor vehicle under a rental agreement for a period

not to exceed 90 days.

(i) A person whose only sale of insurance is for portable

electronics insurance sold in connection with and incidental to the

sale of a portable electronic device if written disclosure material

is provided to the customer at the time of solicitation and the

written material includes all of the following:

(i) A disclosure that portable electronics insurance may

duplicate coverage already provided by the customer's homeowners,

renters, or other insurance policies.

(ii) A statement that the enrollment by the customer in a

portable electronics insurance program is not required to purchase

or lease a portable electronic device or services for the device.

(iii) A summary of the material terms of the portable

electronics insurance coverage, including all of the following:

(A) The identity of the insurer.

(B) The amount of any applicable deductible and how it is to

be paid.

(D) Key terms and conditions of the coverage, such as whether

the portable electronics may be repaired or replaced with a similar

make and model or reconditioned or nonoriginal manufacturer parts

or equipment.

(iv) A summary of the process for filing a claim, including a

description of how to return a portable electronic device and the

maximum fee applicable if the customer fails to comply with

equipment return requirements.

(v) A statement that the customer may cancel enrollment for

coverage under a portable electronics insurance policy at any time

and that the person paying the premium will receive a refund of or

credit for any unearned premium.

(j) A person whose only sale of insurance is for travel

insurance sold in conjunction with and incidental to planned

travel.

(k) A person whose only sale of insurance is stored property

insurance sold in connection with and incidental to the rental of

storage space in a self-service storage facility under a rental

agreement for a period not to exceed 1 year if written disclosure

material is provided to the customer at the time of solicitation

and the written material includes all of the following:

(i) A disclosure that the stored property insurance may

duplicate coverage already provided by the customer's homeowners,

renters, or other insurance policies.

(ii) A summary of the material terms of the stored property

insurance coverage, including all of the following:

(A) The identity of the insurer.

(B) The benefits of the coverage.

(iii) A summary of the process for filing a claim.

(3) As used in this section:

(a) "Motor vehicle" means a motorized vehicle designed for

transporting passengers or goods.

(b) "Self-service storage facility" means that term as defined

in section 2 of the self-service storage facility act, 1985 PA 148,

MCL 570.522.

coverage for the loss of, or damage to, tangible personal property

with an insured value not exceeding $10,000.00 contained in a

storage space located on a self-service storage facility or in

transit during the term of a self-service storage facility rental

agreement and that is provided under a group or master policy

issued to a self-service storage facility for the provision of

insurance to its customers.

(d) ~~(b)~~ "Travel insurance" means a limited lines insurance

coverage under section 1201(i) for personal risk incident to

planned travel, including 1 or more of the following:

(i) Interruption or cancellation of a trip or event.

(ii) Loss of baggage or personal effects.

(iii) Damages to accommodations or rental vehicles.

(iv) Sickness, accident, disability, or death occurring during

travel.

(e) ~~(c)~~ Travel insurance does not include major medical plans,

which provide comprehensive medical protection for travelers with

trips lasting 6 months or longer, including, for example, those