Pay an Extra $100 or Be Reported to Your Insurance Company

So, an acquaintance of mine gets a speeding ticket a week or two ago.

The fine is well over $100.

Then, in the mail comes a letter. It says that if he pays (up to) $100 to take Michigan's Basic Driver Improvement Course, and passes, the points will be taken off his driving record. However, the fine for the ticket would stay intact.

So...for a few points to be removed, the final cost could be over $200.

It also says if he doesn't successfully complete the course, the points & fine will remain and his record will be reported to his insurance company.

What's your opinion/feeling on this?
Does this sound like a good idea?
Should this just be for drivers with multiple tickets, first-time offenders, or all?

Your thoughts are welcome.