Michigan Liquor Law Blog

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PAs 104 & 105 — Eliminating an Insurance Report

  • September 29, 2016
  • Brennen Gorman

PAs 104 & 105 were apart of a larger package aimed at eliminating obsolete or unnecessary government reports from the Michigan Insurance Code.

PA 104 eliminated a requirement that the Director of the Department of Insurance and Financial Services (DIFS) issue annual reports on the state of availability in the liquor liability insurance market, including a certification of whether or not the insurance is reasonably available in Michigan and whether it is available at a reasonable premium. PA 105 eliminated a reference to the report from the Liquor Control Code which allowed the Commission to waive liquor liability insurance if the report certified that the insurance was not reasonably available or not available at a reasonable premium.

It is too soon to analyze whether there will be any tangible impacts due to the elimination of these reports. The report was created in 1986 and there had not been any change to the requirement in the 30 years of its existence. PAs 104 & 105 were supported by DIFS and sailed through the Legislature, garnering only one ‘nay’ vote across both chambers. The Commission did not take an official position or give testimony on either, which we infer as it giving little concern to the reports.

We here at Stariha & Brower are taking a wait-and-see position on this package. Although we do not foresee any tangible change for license holders or applicants, the relative obscurity of these reports and lack of legislative testimony leaves us wanting for context.

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