Bill Text: MI HB4024 | 2019-2020 | 100th Legislature | Introduced

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Bill Title: Insurance: no-fault; coverage and benefits; make miscellaneous changes. Amends secs. 3104, 3107, 3109a, 3135 & 3157 of 1956 PA 218 (MCL 500.3104 et seq.) & adds sec. 3180.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2019-03-15 - Bill Electronically Reproduced 01/10/2019 [HB4024 Detail]

Download: Michigan-2019-HB4024-Introduced.html

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HOUSE BILL No. 4024

 

 

January 10, 2019, Introduced by Reps. LaFave and Rendon and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 3104, 3107, 3109a, 3135, and 3157 (MCL

 

500.3104, 500.3107, 500.3109a, 500.3135, and 500.3157), section

 

3104 as amended by 2002 PA 662, section 3107 as amended by 2012 PA

 

542, section 3109a as amended by 2012 PA 454, and section 3135 as

 

amended by 2012 PA 158, and by adding section 3180.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3104. (1) An The catastrophic claims association is

 

created as an unincorporated, nonprofit association. to be known as

 

the catastrophic claims association, hereinafter referred to as the

 

association, is created. Each insurer engaged in writing insurance

 

coverages that provide the security required by section 3101(1)

 

within in this state, as a condition of its authority to transact

 

insurance in this state, shall be is a member of the association

and shall be is bound by the plan of operation of the association.

 

Each An insurer engaged in writing insurance coverages that provide

 

the security required by section 3103(1) within in this state, as a

 

condition of its authority to transact insurance in this state,

 

shall be considered is a member of the association, but only for

 

purposes of premiums under subsection (7)(d). Except as expressly

 

provided in this section, the association is not subject to any

 

laws of this state with respect to insurers, but in all other

 

respects the association is subject to the laws of this state to

 

the extent that the association would be if it were an insurer

 

organized and subsisting under chapter 50.

 

     (2) The For a motor vehicle accident policy issued or renewed

 

before 90 days after the effective date of the amendatory act that

 

added section 3180 and for a motor vehicle accident policy issued

 

or renewed after 90 days after the effective date of the amendatory

 

act that added section 3180 for which the coverage level under

 

section 3109a(2)(c) applies, the association shall provide and each

 

member shall accept indemnification for 100% of the amount of

 

ultimate loss sustained under personal protection insurance

 

coverages in excess of the following amounts in each loss

 

occurrence:

 

     (a) For a motor vehicle accident policy issued or renewed

 

before July 1, 2002, $250,000.00.

 

     (b) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2002 to June 30, 2003, $300,000.00.

 

     (c) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2003 to June 30, 2004, $325,000.00.

     (d) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2004 to June 30, 2005, $350,000.00.

 

     (e) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2005 to June 30, 2006, $375,000.00.

 

     (f) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2006 to June 30, 2007, $400,000.00.

 

     (g) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2007 to June 30, 2008, $420,000.00.

 

     (h) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2008 to June 30, 2009, $440,000.00.

 

     (i) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2009 to June 30, 2010, $460,000.00.

 

     (j) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2010 to June 30, 2011, $480,000.00.

 

     (k) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2011 to June 30, 2013, $500,000.00.

 

     (l) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2013 to June 30, 2015, $530,000.00.

 

     (m) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2015 to June 30, 2017, $545,000.00.

 

     (n) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2017 to June 30, 2019, $555,000.00.

 

Beginning July 1, 2013, 2019, this $500,000.00 $555,000.00 amount

 

shall must be increased biennially on July 1 of each odd-numbered

 

year, for policies issued or renewed before July 1 of the following

 

odd-numbered year, by the lesser of 6% or the consumer price index,

 

Consumer Price Index, and rounded to the nearest $5,000.00. This

The association shall calculate the biennial adjustment shall be

 

calculated by the association by January 1 of the year of its July

 

1 effective date.

 

     (3) An insurer may withdraw from the association only upon on

 

ceasing to write insurance that provides the security required by

 

section 3101(1) in this state.

 

     (4) An insurer whose membership in the association has been

 

terminated by withdrawal shall continue continues to be bound by

 

the plan of operation, and upon on withdrawal, all unpaid premiums

 

that have been charged to the withdrawing member are payable as of

 

the effective date of the withdrawal.

 

     (5) An unsatisfied net liability to the association of an

 

insolvent member shall must be assumed by and apportioned among the

 

remaining members of the association as provided in the plan of

 

operation. The association has all rights allowed by law on behalf

 

of the remaining members against the estate or funds of the

 

insolvent member for sums money due the association.

 

     (6) If a member has been merged or consolidated into another

 

insurer or another insurer has reinsured a member's entire business

 

that provides the security required by section 3101(1) in this

 

state, the member and successors in interest of the member remain

 

liable for the member's obligations.

 

     (7) The association shall do all of the following on behalf of

 

the members of the association:

 

     (a) Assume 100% of all liability as provided in subsection

 

(2).

 

     (b) Establish procedures by which members shall must promptly

report to the association each claim that, on the basis of the

 

injuries or damages sustained, may reasonably be anticipated to

 

involve the association if the member is ultimately held legally

 

liable for the injuries or damages. Solely for the purpose of

 

reporting claims, the member shall in all instances consider itself

 

legally liable for the injuries or damages. The member shall also

 

advise the association of subsequent developments likely to

 

materially affect the interest of the association in the claim.

 

     (c) Maintain relevant loss and expense data relative relating

 

to all liabilities of the association and require each member to

 

furnish statistics, in connection with liabilities of the

 

association, at the times and in the form and detail as may be

 

required by the plan of operation.

 

     (d) In a manner provided for in the plan of operation,

 

calculate and charge to members of the association a total premium

 

sufficient to cover the expected losses and expenses of the

 

association that the association will likely incur during the

 

period for which the premium is applicable. The total premium shall

 

must include an amount to cover incurred but not reported losses

 

for the period and may must be adjusted for any excess or deficient

 

premiums from previous periods. Excesses or deficiencies from

 

previous periods may must either be fully adjusted in a single

 

period or may be adjusted over several periods in a manner provided

 

for in the plan of operation. Each member shall must be charged an

 

amount equal to that member's total written car years of insurance

 

providing the security required by section 3101(1) or 3103(1), or

 

both, written in this state during the period to which the premium

applies, with the total written car years of insurance multiplied

 

by the applicable average premium per car. The average premium per

 

car shall be is the total premium, calculated as adjusted for any

 

excesses or deficiencies, divided by the total written car years of

 

insurance providing the security required by section 3101(1) or

 

3103(1), or both, written in this state of all members during the

 

period to which the premium applies, excluding cars insured under a

 

policy with a coverage limit under section 3109a(2)(a) or (b)

 

except for any portion of total premium that is an adjustment for a

 

deficiency in a previous period. A member may not be charged a

 

premium for a car insured under a policy with a coverage limit

 

under section 3109a(2)(a) or (b) other than for the portion of the

 

total premium attributable to an adjustment for a deficiency in a

 

previous period. A member shall must be charged a premium for a

 

historic vehicle that is insured with the member of 20% of the

 

premium charged for a car insured with the member. As used in this

 

subdivision:

 

     (i) "Car" includes a motorcycle but does not include a

 

historic vehicle.

 

     (ii) "Historic vehicle" means a vehicle that is a registered

 

historic vehicle under section 803a or 803p of the Michigan vehicle

 

code, 1949 PA 300, MCL 257.803a and 257.803p.

 

     (e) Require and accept the payment of premiums from members of

 

the association as provided for in the plan of operation. The

 

association shall do either of the following:

 

     (i) Require payment of the premium in full within 45 days

 

after the premium charge.

     (ii) Require payment of the premiums to be made periodically

 

to cover the actual cash obligations of the association.

 

     (f) Receive and distribute all sums money required by the

 

operation of the association.

 

     (g) Establish procedures for reviewing claims procedures and

 

practices of members of the association. If the claims procedures

 

or practices of a member are considered inadequate to properly

 

service the liabilities of the association, the association may

 

undertake or may contract with another person, including another

 

member, to adjust or assist in the adjustment of claims for the

 

member on claims that create a potential liability to the

 

association and may charge the cost of the adjustment to the

 

member.

 

     (8) In addition to other powers granted to it by this section,

 

the association may do all of the following:

 

     (a) Sue and be sued in the name of the association. A judgment

 

against the association shall does not create any direct liability

 

against the individual members of the association. The association

 

may provide for the indemnification of its members, members of the

 

board of directors of the association, and officers, employees, and

 

other persons lawfully acting on behalf of the association.

 

     (b) Reinsure all or any portion of its potential liability

 

with reinsurers licensed to transact insurance in this state or

 

approved by the commissioner.director of the department.

 

     (c) Provide for appropriate housing, equipment, and personnel

 

as may be necessary to assure the efficient operation of the

 

association.

     (d) Pursuant to the plan of operation, adopt reasonable rules

 

for the administration of the association, enforce those rules, and

 

delegate authority, as the board considers necessary to assure the

 

proper administration and operation of the association consistent

 

with the plan of operation.

 

     (e) Contract for goods and services, including independent

 

claims management, actuarial, investment, and legal services, from

 

others within in or without outside of this state to assure the

 

efficient operation of the association.

 

     (f) Hear and determine complaints of a company or other

 

interested party concerning the operation of the association.

 

     (g) Perform other acts not specifically enumerated in this

 

section that are necessary or proper to accomplish the purposes of

 

the association and that are not inconsistent with this section or

 

the plan of operation.

 

     (9) A board of directors is created , hereinafter referred to

 

as the board, which shall be responsible for the operation of and

 

shall operate the association consistent with the plan of operation

 

and this section.

 

     (10) The plan of operation shall must provide for all of the

 

following:

 

     (a) The establishment of necessary facilities.

 

     (b) The management and operation of the association.

 

     (c) Procedures to be utilized in charging premiums, including

 

adjustments from excess or deficient premiums from prior periods.

 

     (d) Procedures governing the actual payment of premiums to the

 

association.

     (e) Reimbursement of each member of the board by the

 

association for actual and necessary expenses incurred on

 

association business.

 

     (f) The investment policy of the association.

 

     (g) Any other matters required by or necessary to effectively

 

implement this section.

 

     (11) Each The board shall must include members that would

 

contribute a total of not less than 40% of the total premium

 

calculated pursuant to under subsection (7)(d). Each director shall

 

be board member is entitled to 1 vote. The initial term of office

 

of a director shall be board member is 2 years.

 

     (12) As part of the plan of operation, the board shall adopt

 

rules providing for the composition and term of successor boards to

 

the initial board and the terms of board members, consistent with

 

the membership composition requirements in subsections (11) and

 

(13). Terms of the directors shall board members must be staggered

 

so that the terms of all the directors board members do not expire

 

at the same time and so that a director board member does not serve

 

a term of more than 4 years.

 

     (13) The board shall must consist of 5 directors, board

 

members and the commissioner shall be director of the department,

 

who is an ex officio member of the board without vote.

 

     (14) Each director The director of the department shall be

 

appointed by the commissioner and appoint the board members. A

 

board member shall serve until that member's his or her successor

 

is selected and qualified. The board shall elect the chairperson of

 

the board. shall be elected by the board. A The director of the

department shall fill any vacancy on the board shall be filled by

 

the commissioner consistent with as provided in the plan of

 

operation.

 

     (15) After the board is appointed, the The board shall meet as

 

often as the chairperson, the commissioner, director of the

 

department, or the plan of operation shall require, requires, or at

 

the request of any 3 members of the board. board members. The

 

chairperson shall retain the right to may vote on all issues. Four

 

members of the board board members constitute a quorum.

 

     (16) An The board shall furnish to each member an annual

 

report of the operations of the association in a form and detail as

 

may be determined by the board. shall be furnished to each member.

 

     (17) Not more than 60 days after the initial organizational

 

meeting of the board, the board shall submit to the commissioner

 

for approval a proposed plan of operation consistent with the

 

objectives and provisions of this section, which shall provide for

 

the economical, fair, and nondiscriminatory administration of the

 

association and for the prompt and efficient provision of

 

indemnity. If a plan is not submitted within this 60-day period,

 

then the commissioner, after consultation with the board, shall

 

formulate and place into effect a plan consistent with this

 

section.

 

     (18) The plan of operation, unless approved sooner in writing,

 

shall be considered to meet the requirements of this section if it

 

is not disapproved by written order of the commissioner within 30

 

days after the date of its submission. Before disapproval of all or

 

any part of the proposed plan of operation, the commissioner shall

notify the board in what respect the plan of operation fails to

 

meet the requirements and objectives of this section. If the board

 

fails to submit a revised plan of operation that meets the

 

requirements and objectives of this section within the 30-day

 

period, the commissioner shall enter an order accordingly and shall

 

immediately formulate and place into effect a plan consistent with

 

the requirements and objectives of this section.

 

     (17) (19) The proposed plan of operation or Any amendments to

 

the plan of operation of the association are subject to majority

 

approval by the board, ratified ratification by a majority of the

 

membership of the association having a vote, with voting rights

 

being apportioned according to the premiums charged in subsection

 

(7)(d), and are subject to approval by the commissioner.director of

 

the department.

 

     (18) (20) Upon approval by the commissioner and ratification

 

by the members of the plan submitted, or upon the promulgation of a

 

plan by the commissioner, each An insurer authorized to write

 

insurance providing the security required by section 3101(1) in

 

this state, as provided in this section, is bound by and shall

 

formally subscribe to and participate in the plan approved of

 

operation as a condition of maintaining its authority to transact

 

insurance in this state.

 

     (19) (21) The association is subject to all the reporting,

 

loss reserve, and investment requirements of the commissioner

 

director of the department to the same extent as would is a member

 

of the association.

 

     (20) (22) Premiums charged members by the association shall

must be recognized in the rate-making procedures for insurance

 

rates in the same manner that expenses and premium taxes are

 

recognized. If a member of the association passes on any portion of

 

the premium payable under this section to an insured, the amount

 

passed on must equal the portion of the premium payable by the

 

member under this section attributable to the car or historic

 

vehicle insured, including any adjustments for excesses or

 

deficiencies from a previous period.

 

     (21) (23) The commissioner director of the department or an

 

authorized representative of the commissioner director of the

 

department may visit the association at any time and examine any

 

and all of the association's affairs.

 

     (22) (24) The association does not have liability for losses

 

occurring before July 1, 1978. After 90 days after the effective

 

date of the amendatory act that added section 3180, the association

 

does not have liability for a loss under a motor vehicle accident

 

policy for which a coverage limit under section 3109a(2)(a) or (b)

 

applies.

 

     (23) (25) As used in this section:

 

     (a) "Association" means the catastrophic claims association

 

created in subsection (1).

 

     (b) "Board" means the board of directors of the association

 

created in subsection (9).

 

     (c) "Car" includes a motorcycle but does not include a

 

historic vehicle.

 

     (d) (a) "Consumer price index" Price Index" means the

 

percentage of change in the consumer price index Consumer Price

Index for all urban consumers in the United States city average for

 

all items for the 24 months prior to before October 1 of the year

 

prior to before the July 1 effective date of the biennial

 

adjustment under subsection (2)(k) (2)(n) as reported by the United

 

States department of labor, bureau of labor statistics, Department

 

of Labor, Bureau of Labor Statistics, and as certified by the

 

commissioner.director of the department.

 

     (e) "Historic vehicle" means a vehicle that is a registered

 

historic vehicle under section 803a or 803p of the Michigan vehicle

 

code, 1949 PA 300, MCL 257.803a and 257.803p.

 

     (f) (b) "Motor vehicle accident policy" means a policy

 

providing the coverages required under section 3101(1).

 

     (g) (c) "Ultimate loss" means the actual loss amounts that a

 

member is obligated to pay and that are paid or payable by the

 

member, and do not include claim expenses. An ultimate loss is

 

incurred by the association on the date that the loss occurs.

 

     Sec. 3107. (1) Except as otherwise provided in subsection (2),

 

this chapter, personal protection insurance benefits are payable

 

for the following:

 

     (a) Allowable expenses consisting of all reasonable charges

 

incurred, up to any applicable coverage limit under section 3109a,

 

for reasonably necessary products, services and accommodations for

 

an injured person's care, recovery, or rehabilitation. Allowable

 

expenses within personal protection insurance coverage shall do not

 

include either any of the following:

 

     (i) Charges for a hospital room in excess of a reasonable and

 

customary charge for semiprivate accommodations, except if unless

the injured person requires special or intensive care.

 

     (ii) Funeral and burial expenses in excess of the amount set

 

forth in the policy which shall must not be less than $1,750.00 or

 

more than $5,000.00.

 

     (b) Work loss consisting of loss of income from work an

 

injured person would have performed during the first 3 years after

 

the date of the accident if he or she had not been injured. Work

 

loss does not include any loss after the date on which the injured

 

person dies. Because the benefits received from personal protection

 

insurance for loss of income are not taxable income, the benefits

 

payable for such loss of income shall must be reduced 15% unless

 

the claimant presents to the insurer in support of his or her claim

 

reasonable proof of a lower value of the income tax advantage in

 

his or her case, in which case the lower value shall apply. must be

 

applied. For the period beginning October 1, 2012 through September

 

30, 2013, the benefits payable for work loss sustained in a single

 

30-day period and the income earned by an injured person for work

 

during the same period together shall must not exceed $5,189.00,

 

which maximum shall apply must be applied pro rata to any lesser

 

period of work loss. Beginning October 1, 2013, the maximum shall

 

must be adjusted annually to reflect changes in the cost of living

 

under rules prescribed by the commissioner director, but any change

 

in the maximum shall apply applies only to benefits arising out of

 

accidents occurring subsequent to an accident that occurs after the

 

date of change in the maximum.

 

     (c) Expenses not exceeding $20.00 per day, reasonably incurred

 

in obtaining ordinary and necessary services in lieu of those that,

if he or she had not been injured, an injured person would have

 

performed during the first 3 years after the date of the accident,

 

not for income but for the benefit of himself or herself or of his

 

or her dependent.

 

     (2) Both of the following apply to personal protection

 

insurance benefits payable under subsection (1):

 

     (a) A person who is 60 years of age or older and in the event

 

of an accidental bodily injury would not be eligible to receive

 

work loss benefits under subsection (1)(b) may waive coverage for

 

work loss benefits by signing a waiver on a form provided by the

 

insurer. An insurer shall offer a reduced premium rate to a person

 

who waives coverage under this subsection subdivision for work loss

 

benefits. Waiver of coverage for work loss benefits applies only to

 

work loss benefits payable to the person or persons who have signed

 

the waiver form.

 

     (b) An insurer shall is not be required to provide coverage

 

for the medical use of marihuana or for expenses related to the

 

medical use of marihuana.

 

     Sec. 3109a. (1) An insurer providing personal protection

 

insurance benefits under this chapter may offer, at appropriately

 

reduced premium rates, deductibles and exclusions reasonably

 

related to other health and accident coverage on the insured. Any

 

deductibles and exclusions offered under this section are subject

 

to prior approval by the commissioner director and shall must apply

 

only to benefits payable to the insured person named in the policy,

 

the spouse of the insured person, and any relative of either

 

domiciled in the same household.

     (2) For an insurance policy that provides personal protection

 

insurance benefits and is issued or renewed after 90 days after the

 

effective date of the amendatory act that added section 3180, the

 

insured person named in the policy shall, on a form approved by the

 

director, select 1 of the following coverage levels for the

 

personal protection insurance benefits:

 

     (a) A limit of $250,000.00 per individual per loss occurrence

 

on personal protection insurance benefits under this chapter.

 

     (b) A limit of $500,000.00 per individual per loss occurrence

 

on personal protection insurance benefits under this chapter.

 

     (c) No maximum limit per individual per loss occurrence on

 

personal protection insurance benefits under this chapter.

 

     (3) All of the following apply to subsection (2):

 

     (a) If an insured person named in the policy does not select 1

 

of the coverage levels on a form approved by the director under

 

subsection (2), no maximum limit on personal protection insurance

 

benefits under this chapter applies under the policy. However, if

 

an insured person named in the policy has previously selected as

 

provided in this subdivision 1 of the coverage levels under

 

subsection (2) and does not, before renewal of the policy, select a

 

different coverage level in writing on a form approved by the

 

director, the coverage level applicable before the renewal applies

 

under the policy.

 

     (b) If the insured person named in the policy selects a

 

coverage limit under subsection (2)(a) or (b), the coverage limit

 

under subsection (2)(a) or (b) applies to personal protection

 

insurance benefits payable under the policy to the insured person,

the insured person's spouse, a relative of either domiciled in the

 

same household, and any other person with a right to claim personal

 

protection insurance benefits under the policy.

 

     (c) If the insured person named in the policy does not select

 

a coverage limit under subsection (2)(a) or (b) for a policy, no

 

maximum limit applies to personal protection insurance benefits

 

payable under the policy to the insured person, the insured

 

person's spouse, a relative of either domiciled in the same

 

household, or any other resident of this state with a right to

 

claim personal protection benefits under the policy.

 

     (d) If the coverage limit under subsection (2)(a) or (b)

 

applies to a person claiming personal protection insurance

 

benefits, the coverage limit applies on a per occurrence per loss

 

basis notwithstanding the number of policies applicable to the

 

occurrence or the loss.

 

     (4) The form required under subsection (2) must do all of the

 

following:

 

     (a) State, in a conspicuous manner, the benefits and risks

 

associated with each coverage option available under subsection

 

(2).

 

     (b) Provide a line for the insured person to sign,

 

acknowledging that he or she has read the form and understands the

 

options available to him or her.

 

     (c) Allow the insured person to make the selection of coverage

 

level under subsection (2).

 

     (5) For purposes of this section, the date that a policy is

 

issued or renewed is the effective date of both the personal

protection insurance coverage under the policy and the coverage

 

level applicable under this section.

 

     Sec. 3135. (1) A person remains subject to tort liability for

 

noneconomic loss caused by his or her ownership, maintenance, or

 

use of a motor vehicle only if the injured person has suffered

 

death, serious impairment of body function, or permanent serious

 

disfigurement.

 

     (2) For a cause of action for damages pursuant to subsection

 

(1), filed on or after July 26, 1996, all of the following apply:

 

     (a) The issues of whether the injured person has suffered

 

serious impairment of body function or permanent serious

 

disfigurement are questions of law for the court if the court finds

 

either of the following:

 

     (i) There is no factual dispute concerning the nature and

 

extent of the person's injuries.

 

     (ii) There is a factual dispute concerning the nature and

 

extent of the person's injuries, but the dispute is not material to

 

the determination whether the person has suffered a serious

 

impairment of body function or permanent serious disfigurement.

 

However, for a closed-head injury, a question of fact for the jury

 

is created if a licensed allopathic or osteopathic physician who

 

regularly diagnoses or treats closed-head injuries testifies under

 

oath that there may be a serious neurological injury.

 

     (b) Damages shall must be assessed on the basis of comparative

 

fault, except that damages shall must not be assessed in favor of a

 

party who is more than 50% at fault.

 

     (c) Damages shall must not be assessed in favor of a party who

was operating his or her own vehicle at the time the injury

 

occurred and did not have in effect for that motor vehicle the

 

security required by section 3101 at the time the injury occurred.

 

     (3) Notwithstanding any other provision of law, tort liability

 

arising from the ownership, maintenance, or use within this state

 

of a motor vehicle with respect to which the security required by

 

section 3101 was in effect is abolished except as to:

 

     (a) Intentionally caused harm to persons or property. Even

 

though a person knows that harm to persons or property is

 

substantially certain to be caused by his or her act or omission,

 

the person does not cause or suffer that harm intentionally if he

 

or she acts or refrains from acting for the purpose of averting

 

injury to any person, including himself or herself, or for the

 

purpose of averting damage to tangible property.

 

     (b) Damages for noneconomic loss as provided and limited in

 

subsections (1) and (2).

 

     (c) Damages for allowable expenses, work loss, and survivor's

 

loss as defined in under sections 3107 to 3110 in excess of the

 

daily, monthly, and 3-year limitations contained in those sections

 

or in excess of any applicable limit under section 3109a(2). The

 

party liable for damages is entitled to an exemption reducing his

 

or her liability by the amount of taxes that would have been

 

payable on account of income the injured person would have received

 

if he or she had not been injured.

 

     (d) Damages for economic loss by a nonresident in excess of

 

the personal protection insurance benefits provided under section

 

3163(4). Damages under this subdivision are not recoverable to the

extent that benefits covering the same loss are available from

 

other sources, regardless of the nature or number of benefit

 

sources available and regardless of the nature or form of the

 

benefits.

 

     (e) Damages up to $1,000.00 to a motor vehicle, to the extent

 

that the damages are not covered by insurance. An action for

 

damages under this subdivision shall must be conducted as provided

 

in subsection (4).

 

     (4) All of the following apply to an action for damages under

 

subsection (3)(e):

 

     (a) Damages shall must be assessed on the basis of comparative

 

fault, except that damages shall must not be assessed in favor of a

 

party who is more than 50% at fault.

 

     (b) Liability is not a component of residual liability, as

 

prescribed in section 3131, for which maintenance of security is

 

required by this act.

 

     (c) The action shall must be commenced, whenever legally

 

possible, in the small claims division of the district court or the

 

municipal court. If the defendant or plaintiff removes the action

 

to a higher court and does not prevail, the judge may assess costs.

 

     (d) A decision of the court is not res judicata in any

 

proceeding to determine any other liability arising from the same

 

circumstances that gave rise to the action.

 

     (e) Damages shall must not be assessed if the damaged motor

 

vehicle was being operated at the time of the damage without the

 

security required by section 3101.

 

     (5) As used in this section, "serious impairment of body

function" means an objectively manifested impairment of an

 

important body function that affects the person's general ability

 

to lead his or her normal life.

 

     Sec. 3157. (1) A Subject to subsections (2) and (3), a

 

physician, hospital, clinic, or other person or institution

 

lawfully rendering treatment, products, services, or accommodations

 

to an injured person for an accidental bodily injury covered by

 

personal protection insurance, and a person or institution

 

providing rehabilitative occupational training to the injured

 

person following the injury, may charge a reasonable amount for the

 

treatment, training, products, services, and accommodations

 

rendered. The charge shall must not exceed the amount the person or

 

institution customarily charges for like treatment, training,

 

products, services, and accommodations in cases not involving that

 

do not involve personal protection insurance.

 

     (2) A physician, hospital, clinic, or other person or

 

institution that renders a treatment, training, product, service,

 

or accommodation to an injured person for an accidental bodily

 

injury is not eligible for payment or reimbursement under this

 

chapter of more than 100% of the amount payable for the treatment,

 

training, product, service, or accommodation under R 418.10101 to R

 

418.101503 of the Michigan Administrative Code or schedules of

 

maximum fees for worker's compensation developed under those rules,

 

in effect on December 31, 2018. The director shall review any

 

changes to R 418.10101 to R 418.101503 of the Michigan

 

Administrative Code or schedules of maximum fees for worker's

 

compensation developed under those rules, in effect on December 31,

2018. If the director determines that the changes are reasonable

 

and appropriate for purposes of assuring affordable automobile

 

insurance in this state, the changes apply for purposes of this

 

subsection and the director shall issue an order to that effect.

 

     (3) If R 418.10101 to R 418.101503 of the Michigan

 

Administrative Code or schedules of maximum fees for worker's

 

compensation developed under those rules, in effect on December 31,

 

2018, including any changes applicable under subsection (2), do not

 

provide an amount payable for treatment, training, product,

 

service, or accommodation rendered to an injured person for

 

accidental bodily injury covered by personal protection insurance

 

or rehabilitative occupational training to the injured person

 

following the injury, the physician, hospital, clinic, or other

 

person or institution that renders the treatment, product, service,

 

or accommodation is not eligible for payment or reimbursement under

 

this chapter of more than the average amount accepted by the

 

physician, hospital, clinic, or other person or institution as

 

payment or reimbursement in full for the treatment, training,

 

product, service, or accommodation during the preceding calendar

 

year in cases that do not involve personal protection insurance.

 

     Sec. 3180. (1) By 90 days after the effective date of the

 

amendatory act that added this section, an insurer that offers

 

automobile insurance in this state shall file premium rates for

 

personal protection insurance coverage for automobile insurance

 

policies effective after 90 days after the effective date of the

 

amendatory act that added this section and before 1 year after 90

 

days after the effective date of the amendatory act that added this

section. The premium rates filed, and any subsequent premium rates

 

filed by the insurer for personal protection insurance coverage for

 

automobile insurance policies effective before 5 years after 90

 

days after the effective date of the amendatory act that added this

 

section, must reflect savings expected from the amendments to this

 

chapter made by the amendatory act that added this section,

 

consistent with the requirements of sections 2109 to 2111a for

 

policies to which chapter 21 applies, section 2403 for policies to

 

which chapter 24 applies, and section 2603 for policies to which

 

chapter 26 applies.

 

     (2) If premium rates filed by an insurer under subsection (1)

 

for personal protection insurance coverage do not result in an

 

average 40% or greater reduction per vehicle for policies subject

 

to the coverage limits under section 3109a(2)(a), an average 20% or

 

greater reduction per vehicle for policies subject to the coverage

 

limits under section 3109a(2)(b), and an average 10% or greater

 

reduction per vehicle for policies subject to the coverage level

 

under section 3109a(2)(c) from the premium rates for personal

 

protection insurance coverage that were in effect for the insurer

 

on October 1 of the year preceding the year in which the amendatory

 

act that added this section takes effect, the insurer shall include

 

with the filing both of the following:

 

     (a) Premium rates for personal protection insurance coverage

 

as near as practicable to those reductions recognizing the

 

justifications described in this subsection.

 

     (b) A detailed explanation of the reasons for the insurer's

 

failure to achieve the required reductions and a demonstration

using generally accepted and reasonable actuarial techniques that

 

the required reductions are not justified because of requirements

 

under subsection (1) or 1 or more of the following:

 

     (i) Expected losses of the insurer from the provision of

 

automobile insurance.

 

     (ii) Inflation, as shown by the Consumer Price Index

 

calculated and published by the United States Department of Labor,

 

Bureau of Labor Statistics.

 

     (iii) A change in an assessment imposed on an insurer under

 

section 3104 or 3330.

 

     (3) The director shall review premium rates filed by an

 

insurer under subsection (1) for compliance with subsections (1)

 

and (2). The director shall disapprove a filing that contains a

 

premium rate if after review the director determines both of the

 

following:

 

     (a) That the premium rate does not result in the reductions

 

required by subsections (1) and (2).

 

     (b) That the failure to achieve the reductions is not

 

justified using generally accepted and reasonable actuarial

 

techniques because of 1 or more of the factors listed in subsection

 

(2)(b).

 

     (4) If the director disapproves a premium rate filing under

 

subsection (3), the director shall do both of the following:

 

     (a) Determine what premium rate reductions the insurer could

 

achieve that are as near as practicable to the average per vehicle

 

reductions required under subsections (1) and (2) recognizing the

 

factors listed in subsection (2)(b).

     (b) Provide the insurer with a written explanation of the

 

reasons for the disapproval and the director's determination under

 

subdivision (a).

 

     (5) If the director disapproves a premium rate filing under

 

subsection (3), the insurer shall submit a revised premium rate

 

filing to the director within 15 days of the disapproval that

 

complies with the director's determination under subsection (4)(a).

 

The premium rate filing is subject to review in the same manner as

 

an original premium rate filing under subsection (3).

 

     (6) A premium rate filing under this section that is not

 

disapproved by the director within 30 days of its submission is

 

considered approved. However, the director may extend the time

 

under this subsection by an additional 30 days by giving the

 

insurer written notice before the initial 30-day period expires of

 

the extended time period and the reasons for the extension.

 

     (7) After 90 days after the effective date of the amendatory

 

act that added this section and before 5 years after 90 days after

 

the effective date of the amendatory act that added this section,

 

an insurer shall not issue or renew an automobile insurance policy

 

in this state unless the premium rates filed by the insurer for

 

personal protection insurance coverage are approved under this

 

section.

 

     (8) For purposes of calculating a personal protection

 

insurance premium or premium rate under this section, the premium

 

includes the catastrophic claims assessment imposed under section

 

3104.

 

     Enacting section 1. This amendatory act does not take effect

unless, as provided in section 34 of article IV of the state

 

constitution of 1963, it is approved by a majority of the electors

 

of this state voting at the November 2020 regular election, held

 

under section 641(1)(a) of the Michigan election law, 1954 PA 116,

 

MCL 168.641.