REGULATORY ACTIVITY:

• Michigan issued Bulletin 2018-18 INS regarding annual adjustment of maximum work loss, benefit and survivors' loss benefits payable under policies of personal protection insurance.  To view the bulletin, go to https://www.michigan.gov/difs/0,5269,7-303-12900_12906---,00.html.

REGULATORY ACTIVITY:

• R 501.3 was promulgated to set standards for public adjusters (formerly known as adjusters for the assured). Subsequent amendments to the Insurance Code incorporate nearly all of the rules provisions. Accordingly, the rule is duplicative of requirements contained in statute; and, in two instances, obsolete. The rule should be rescinded.

REGULATORY ACTIVITY:

• Issued bulletin 2018-13-INS regarding disputes between No-Fault automobile insurers and health care providers.  This bulletin supersedes bulletin 90-03 issued on October 23, 1992. Bulletin 92-03 contained statements regarding the obligations of auto insurers to their insureds. This bulletin clarifies those obligations in light of recent case law interpreting certain provisions of the Insurance Code (Code).   On May 25, 2017, the Michigan Supreme Court issued an opinion in Covenant Medical Center, Inc v State Farm Mutual Auto Ins Co, 500 Michigan 191; 895 NW2d 490 (2017), in which it held that health care providers do not have a statutory cause of action against no-fault insurers for recovery of personal protection insurance benefits. See Covenant, 895 NW2d at 505.  To view the bulletin, go to https://www.michigan.gov/difs/0,5269,7-303-12900_12906---,00.html.

REGULATORY ACTIVITY:

• Issued bulletin 2018-12-INS regarding insurance sliding.  It has come to the Director's attention that some insurance producers are engaging in insurance "sliding." "Sliding" is defined as an agent's failure to fully disclose all the details of, and obtain informed consent to, the purchase of all products and services being included in an insurance transaction. When engaging in sliding, an agent, without disclosure to the customer, combines the charge for additional products or coverages with the premium charged for insurance. This results in an excessive charge to the customer for the sale of an insurance product. The Director has concluded that sliding is a form of misrepresentation and is therefore prohibited under the Insurance Code of 1956 ("Code"). See Final Decision in DIFS v Sinan Jamil, ProStar Insurance Agency, Inc., Docket No. 15-064706 (June 19, 2017).  In DIFS v Jamil, the Director found that failure to fully disclose the details and costs of each product being sold in an insurance transaction constitutes an omission of material fact that misrepresents the terms, benefits, advantages, or conditions of an insurance policy, and thus violates Sections 2005(a), 1239(1)(e), and 1239(1)(h) of the Code. See Final Decision, supra, p. 3. In addition, failing to remit payments for insurance to an insurer is a violation of Section 1207(1) of the Code, and failure to accurately record funds is a violation of Section 1207(2). Id. Examples of misrepresentations, commonly referred to as sliding, that are prohibited under the Code include, but are not limited to, the following: representing to an applicant that a roadside assistance product is part of a DIFS- approved insurance product when, in fact, it is not; representing to an applicant that a roadside assistance product is required for the purchase of automobile insurance, when it is not; representing to an applicant that any ancillary coverage or product is required in conjunction with the purchase of insurance when such coverage or product is not required; enticing customers into signing up for an auto club membership by failing to fully explain and disclose what is being signed or agreed to; enticing customers into signing up for insurance coverage without fully explaining all coverages included and the cost for each; representing to an applicant that an ancillary coverage, service, or product is included as part of an insurance product or without additional charge, when it is not or when such charge is in fact required; failing to accurately disclose the cost of insurance as charged by the insurer; failing to fully explain the details and separate cost of any ancillary product offered in conjunction with the sale of insurance; and  charging an applicant for an ancillary coverage or product, in addition to the cost of the insurance coverage being applied for, without the informed consent of the applicant. These activities violate numerous sections of the Code, including but not limited to Section 2005, Section 1207(1), Section 1207(2), and Section 1239(1)(d), (e), and (h). In addition, these activities also violate Section 1239(1)(h), which provides that the Director may take action against a producer who engages in "fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere."  Finally, if these activities are knowingly committed by a person with an intent to injure, defraud or deceive, then they would also violate Section 4503(g) and (i) of the Code. Pursuant to Sections 1242and 1244 of the Code, MCL 500.1242 and 500.1244, and the Michigan Administrative Procedures Act, the Director will commence administrative proceedings against producers who, at any time, have engaged in any form of sliding or otherwise made misrepresentations in connection with an insurance-related transaction. Through such proceedings, the Director is authorized to impose penalties including restitution, fines, and the suspension or revocation of a producer and/or agency license. To view a copy of the entire bulletin, go to https://www.michigan.gov/difs/0,5269,7-303-12900_12906---,00.html.

REGULATORY ACTIVITY:

• Posted notice of adoption of rule R 527 regarding certificates of no-fault self-insurance.  The rule became effective March 8, 2018.  To view the rule, go to http://dmbinternet.state.mi.us/DMB/ORRDocs/AdminCode/1710_2017-035IF_AdminCode.pdf.

REGULATORY ACTIVITY:

• Published bulletin 2018-03 regarding Michigan Property and Casualty Guaranty Association’s Annual Adjustment of the Net Worth Limit and Claim Cap Pursuant to MCL 500.7925(4) and (6).  To view the bulletin, go to http://www.michigan.gov/documents/difs/Bulletin_2018-03-INS_612126_7.pdf.

REGULATORY ACTIVITY:

• Posted in the state register notice of amendments to rules regarding certificates of no-fault self-insurance.
• Issued Bulletin 2017-12 INS regarding Annual Adjustment of the Maximum Work Loss Benefit and Survivors' Loss Benefits Payable under Policies of Personal Protection.  This bulletin supersedes bulletin 2016-19-INC.  The bulletin becomes effective October 1, 2017.  Accordingly, the new work loss and survivors’ loss benefit payable, effective October 1, 2017 through September 30, 2018, shall not exceed $5,541 per single 30-day period. This maximum shall apply pro rata to any lesser period of work loss.