Sec. 2409c.
(1) By May 15, 2003 and by May 15 annually thereafter, the commissioner shall make an annual determination as to whether a reasonable degree of competition in the commercial liability insurance market exists on a statewide basis. If the commissioner determines that a reasonable degree of competition in the commercial liability insurance market does not exist on a statewide basis, the commissioner shall hold a public hearing and shall issue a report delineating specific classifications and kinds or types of insurance, if any, where a reasonable degree of competition does not exist. The report shall be based on relevant economic tests, including, but not limited to, those in subsection (3). The findings in the report shall not be based on any single measure of competition, but appropriate weight shall be given to all measures of competition. Any person who disagrees with the report and findings of the commissioner may request a contested hearing pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, not later than 60 days after issuance of the report under this subsection.
(2) If the results of the report issued under subsection (1) are disputed or if the commissioner determines that circumstances that the report was based on have changed, the commissioner shall issue a supplemental report to the report under subsection (1) which shall include a certification of whether or not a reasonable degree of competition exists in the commercial liability insurance market. The supplemental report and certification shall be issued not later than November 15 immediately following the release of the report under subsection (1) that this report supplements and shall be supported by substantial evidence.
(3) All of the following shall be considered by the commissioner for purposes of subsections (1) and (2):
(a) The extent to which any insurer controls the commercial liability insurance market, or any portion of the commercial liability insurance market.
(b) Whether the total number of companies writing commercial liability insurance in this state is sufficient to provide multiple options to commercial liability insurance purchasers.
(c) The disparity among commercial liability insurance rates and classifications to the extent that such classifications result in rate differentials.
(d) The availability of commercial liability insurance to commercial liability insurance purchasers in all geographic areas and all types of business.
(e) The residual market share.
History: Add. 1986, Act 318, Eff. June 1, 1987 ;-- Am. 2002, Act 621, Imd. Eff. Dec. 23, 2002
Popular Name: Act 218
Last modified: October 10, 2016