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Public Act 338 of 2010
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- Introduced by Sen. Jason Allen (R) on September 15, 2009, to replace a prohibition on an insurer exposing itself to a loss on any one risk or hazard in an amount that exceeds 10 percent of its paid-up capital and surplus. Instead, an existing insurer (but not new ones with certain exceptions) could risk up to half its funds on a single risk or hazard.
- Referred to the Senate Economic Development and Regulatory Reform Committee on September 15, 2009.
- Reported in the Senate on May 6, 2010, with the recommendation that the substitute (S-1) be adopted and that the bill then pass.
- Substitute offered in the Senate on November 9, 2010, to replace the previous version of the bill with one that revises details but does not change the substance as previously described. The substitute passed by voice vote in the Senate on November 9, 2010.
- Referred to the Senate Economic Development and Regulatory Reform Committee on September 15, 2009.
- Passed 38 to 0 in the Senate on November 9, 2010.
Who Voted "Yes" and Who Voted "No" - Received in the House on November 9, 2010.
- Referred to the House Insurance Committee on November 9, 2010.
- Amendment offered by Rep. Barb Byrum (D) on December 15, 2010, to revises details of the exceptions for new insurance companies. The amendment passed by voice vote in the House on December 15, 2010.
- Passed 73 to 19 in the House on December 15, 2010, to replace a prohibition on an insurer exposing itself to a loss on any one risk or hazard in an amount that exceeds 10 percent of its paid-up capital and surplus. Instead, an existing insurer (but not new ones with certain exceptions) could risk up to half its funds on a single risk or hazard.
Who Voted "Yes" and Who Voted "No" - Received in the Senate on December 15, 2010.
- Passed 35 to 0 in the Senate on December 15, 2010, to concur with the House-passed version of the bill.
Who Voted "Yes" and Who Voted "No" - Signed by Gov. Jennifer Granholm on December 21, 2010.
Most Recent Comments
1) Re: 2009 Senate Bill 825 (Allow insurer to risk half of funds on one risk or hazard ) by jayF on October 5, 2009The U.S. economy has experiencing the worst financial depression. In the second half quarter of 2008, financial pressures intensified and triggering massive financial instability and global financial markets. In the United States, unemployment rate surged, with GDP declining by 6.25 percent in the fourth quarter of 2008 and a further 5.5 percent in the first quarter of 2009. Negative territory had been an effect of inflation sank. Production and international trade had slowdown, with pronounced contractions in manufacturing exporters. Measures of financial stress, especially credit spreads, increased payday loans, while Treasury yields fell and the dollar strengthened amid safe-haven flows. Despite the growth of dollar, the U.S. current account deficit receded on the back of weak domestic demand and lower oil prices.
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This language is very open and it does not indicate which line of insurance this will impact. This is a grave concern. Insurance was classified as commerce to protect citizens and businesses and the state has the authority to regulate the business of insurance so as to protect citizens and businesses. Those who act as insurers are to manage risks, if a risk is so hazardous as to consume half of the funds where is the protection for consumers. Insurance contracts become bailout contracts and not safety nets.
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Introduced in the Senate on September 15, 2009
Click here to view bill details.
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