Mich. Admin. Code R. 500.1514 - Complaint-resolution process; remedies based on director's review and determination
Rule 14.
(1) Subject
to subrule (2) of this rule, if the director concludes that the person making
the complaint was improperly denied automobile insurance or home insurance, the
director shall order an appropriate remedy.
(2) If the director concludes that the
automobile insurance or home insurance of the person making the complaint was
improperly terminated, the person may select any of the following remedies:
(a) The termination is deemed invalid and
coverage is reinstated effective as of the date of the termination upon payment
of the applicable premium.
(b) The
termination is deemed invalid and coverage is reinstated effective as of the
date of the director's decision issued under
R
500.1513 upon payment of the applicable premium,
subject to the following conditions if the person has secured coverage from an
insurer other than the insurer that improperly terminated the insurance:
(i) Upon notice from the person, the coverage
must be canceled and the insurer providing the coverage shall provide the
person a refund of premium pursuant to the insurer's filed rating
rules.
(ii) The insurer that
improperly terminated the insurance shall pay the person any additional premium
expenditures incurred by the person as a result of seeking additional coverage
in excess of the pro rata premium the person would have paid for the coverage
from the improperly terminating insurer for the same period of time.
(c) If the person has secured
coverage from an insurer other than the insurer that improperly terminated the
insurance, the person may continue that coverage, and the termination is deemed
invalid but coverage is not reinstated.
(3) If the director concludes that the person
making the complaint was charged an incorrect premium, the director shall order
an appropriate remedy.
(4) If the
director orders an appropriate remedy under this rule, the insurer shall,
within 10 business days after the director's order, comply with the director's
order, provide the required remedy to the person making the complaint, if any,
and provide documentation to the director showing how the specific remedy was
determined, calculated, or assessed when providing it to the person.
Notes
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