Bill Text: MI HB4224 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Insurance; insurers; filing fee for annual statement for foreign insurers; eliminate. Amends secs. 240 & 438 of 1956 PA 218 (MCL 500.240 & 500.438).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-06-09 - Laid Over One Day Under The Rules [HB4224 Detail]
Download: Michigan-2015-HB4224-Engrossed.html
HB-4224, As Passed Senate, June 9, 2016
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4224
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 240, 438, 3101a, 3111, 3114, 3115, 3163, 3172,
3173, 3173a, 3174, 3175, and 3177 (MCL 500.240, 500.438, 500.3101a,
500.3111, 500.3114, 500.3115, 500.3163, 500.3172, 500.3173,
500.3173a, 500.3174, 500.3175, and 500.3177), section 240 as
amended by 2000 PA 252, section 438 as amended by 1994 PA 227,
section 3101a as amended by 2014 PA 419, section 3114 as amended by
2002 PA 38, section 3163 as amended by 2002 PA 697, sections 3172,
3173a, 3174, and 3175 as amended by 2012 PA 204, and section 3177
as amended by 1984 PA 426.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 240. (1) The commissioner director shall
collect, and the
1 person affected shall pay to the commissioner, director, the
2 following fees:
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(a) Filing fee for original authorization to |
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transact insurance or health maintenance organization |
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business in this state, for each domestic, foreign, |
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and alien insurer, and each health maintenance |
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organization........................................... |
$ 25.00. |
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(b) |
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amendatory act that amended this subdivision, filing |
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fee for annual statement of foreign and alien insurers, |
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each year, subject to section 476a..................... |
$ 25.00. |
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(c) |
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nonresident, payable by insurer or health maintenance |
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organization
so represented, for each |
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each year.............................................. |
$ 5.00. |
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(d) Application fee payable by each initial |
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applicant
for license as resident |
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nonresident
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producer, solicitor, counselor, or adjuster, not |
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transferable or refundable............................. |
$ 10.00. |
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(e) Solicitor's license, each year................ |
$ 10.00. |
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(f) Insurance counselor license, each year........ |
$ 10.00. |
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(g) Adjuster's license, each year................. |
$ 5.00. |
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(h) License examination fee, payable by applicant |
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for all subjects covered in any 1 examination, or |
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portion of an examination, for license as resident |
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solicitor, counselor, or adjuster, each examination, |
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not transferable or refundable......................... |
$ 10.00. |
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(i) Surplus lines |
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year................................................... |
$ 100.00. |
5 (2) Each An incorporated domestic insurer shall pay to the
6 attorney general, for the examination of the insurer's articles of
7 incorporation or any amendments to the articles of incorporation,
8 the sum of $25.00.
9 (3) The fees and charges for official services performed by
10 the commissioner director
or the commissioner's director's deputies
11 or employees, when collected, shall must be
turned over to the
12 state treasurer and a receipt taken. The fees and charges provided
13 for in this section shall must be deposited in the
state treasury
14 to the credit of the general fund.
15 (4) The provisions of subsection (1)(h), insofar as they
16 provide for The examination fees described in subsection (1)(h) ,
17 are applicable only if the examinations are administered by the
18 commissioner. director.
If the examinations are administered by
19 some a designated authority other than the commissioner,
director,
20 appropriate examination fees shall be are payable
directly to the
21 designated authority.
22 Sec. 438. (1) Each An insurer, foreign, alien,
U.S. branch, or
23 domestic, transacting business within this state, shall annually,
24 on or before March 1, prepare under oath and deposit with the
25 commissioner director
a statement concerning its affairs in a
form
26 and manner as prescribed by the commissioner. director. The annual
27 statement shall must
be filed on or before March 1 of the
year
1 following that covered by the statement. Upon On request
and for
2 good cause shown, the commissioner director may
grant to any a
3 company reasonable extensions of the March 1 filing date for
4 periods not to exceed 30 days. The insurer shall pay the filing fee
5 prescribed in section 240(1)(b).
6 (2) The commissioner director shall prescribe the
format and
7 content of statements that are suitable and adaptable to each kind
8 of insurer authorized by this act. The commissioner director shall
9 include requests for information upon any and all on important
10 elements of an insurer's business, including any matter, condition,
11 or requirement regulated by this act. An annual statement filed by
12 an insurer under this section shall must be
prepared in accordance
13 with instructions provided by, and accounting practices and
14 procedures designated by, the commissioner.director.
15 (3) The commissioner director may address
inquiries to any an
16 insurer, in relation to the insurer's activities or conditions, or
17 any matter connected with the insurer's transactions. An The
18 insurer so addressed shall promptly reply in writing to each
19 inquiry by the commissioner.described in this subsection.
20 (4) Each A report filed with the commissioner pursuant to
21 director under this section shall
must be made available to the
22 public in compliance with the freedom of information act, Act No.
23 442 of the Public Acts of 1976, being sections 15.231 to 15.246 of
24 the Michigan Compiled Laws.1976
PA 442, MCL 15.231 to 15.246.
25 (5) Each An authorized insurer that fails to does not make
or
26 deposit the annual statement required by this section, or fails to
27 does not reply within 30
days to an inquiry of the commissioner,
1 director, is subject to a civil penalty of not less than $1,000.00
2 or more than $5,000.00, and an additional $50.00 for every day that
3 the insurer fails to does
not make and deposit the annual
statement
4 or reply to the inquiry. In addition, each an insurer
that fails to
5 does not make and deposit an
annual statement, or fails to does
not
6 make a satisfactory reply to an inquiry of the commissioner,
7 director, concerning the
insurer's affairs shall be is
subject to
8 proceedings under section 436.
9 (6) The annual statement of an alien insurer shall must relate
10 only to the insurer's assets, transactions, and affairs in the
11 United States unless the commissioner director requires
otherwise.
12 (7) As used in this section, "U.S. branch" means that term as
13 defined in section 431.
14 Sec. 3101a. (1) Except as otherwise provided in this section,
15 an insurer, in conjunction with the issuance of an automobile
16 insurance policy, as defined in section 3303, shall provide 2
17 certificates of insurance for each insured vehicle. The insurer
18 shall mark 1 of the certificates as the secretary of state's copy,
19 which copy, except as otherwise provided in this section, shall be
20 filed with the secretary of state by the policyholder upon
21 application for a vehicle registration. The secretary of state
22 shall not maintain the certificate of insurance received under this
23 subsection on file.
24 (1) (2) Beginning December 30, 2011, an An insurer,
in
25 conjunction with the issuance of an automobile insurance policy,
26 shall provide to the insured 1 certificate of insurance for each
27 insured vehicle, and for private passenger nonfleet automobiles
1 listed on the policy shall supply to the secretary of state ,
in
2 the format and timeline as required by the secretary of state,
3 which shall not be required more frequently than every 14 days, the
4 automobile insurer's name, the name of the named insured, the named
5 insured's address, the vehicle identification number for each such
6 private passenger nonfleet vehicle listed on the policy, and the
7 policy number. The insurer shall supply the information required
8 under this subsection in the format and on a timeline as required
9 by the secretary of state. The secretary of state shall not require
10 the submission of information under this subsection more frequently
11 than every 14 days. In determining the format under this
12 subsection, the secretary of state shall consult with insurers. As
13 used in this subsection, "private passenger nonfleet automobile"
14 means that term as defined in section 3303.
15 (2) The secretary of state shall provide policy information
16 received under subsection (1) to the Michigan automobile insurance
17 placement facility as required for the Michigan automobile
18 insurance placement facility to comply with this act.
19 (3) Until December 31, 2018, the secretary of state shall
20 provide policy information received under this subsection (1) to
21 the department of community health and human services as required
22 for the department of community health and human services to comply
23 with 2006 PA 593, MCL 550.281 to 550.289. In determining the format
24 under this subsection, the secretary of state shall consult with
25 insurers. As used in this subsection, "private passenger nonfleet
26 automobile" means that term as defined in section 3303.
27 (4) (3) The
secretary of state shall accept as proof of
1 vehicle insurance a transmission of the insured vehicle's vehicle
2 identification number. Policy information submitted by an insurer
3 and received by the secretary of state under this section is
4 confidential, is not subject to the freedom of information act,
5 1976 PA 442, MCL 15.231 to 15.246, and shall not be disclosed to
6 any person except the department of community health and human
7 services for purposes of 2006 PA 593, MCL 550.281 to 550.289, or
8 pursuant to an order by a court of competent jurisdiction in
9 connection with a claim or fraud investigation or prosecution. The
10 transmission to the secretary of state of a vehicle identification
11 number is proof of insurance to the secretary of state for motor
12 vehicle registration purposes only and is not evidence that a
13 policy of insurance actually exists between an insurer and an
14 individual.
15 (5) (4) A
person who supplies false information to the
16 secretary of state under this section or who issues or uses an
17 altered, fraudulent, or counterfeit certificate of insurance is
18 guilty of a misdemeanor punishable by imprisonment for not more
19 than 1 year or a fine of not more than $1,000.00, or both.
20 (6) (5) The
department of community health and
human services
21 shall report to the senate and house of representatives
22 appropriations committees and standing committees concerning
23 insurance issues on the number of claims and total dollar amount
24 recovered from automobile insurers pursuant to under 2006
PA 593,
25 MCL 550.281 to 550.289. The reports required by this subsection
26 shall must be given to the appropriations committees and
standing
27 committees concerning insurance issues by December 30 of each year
1 through December 30, 2018 and shall must cover
the preceding 12-
2 month period.
3 Sec. 3111. (1) Personal Except as provided in subsection (2),
4 personal protection insurance benefits are payable for accidental
5 bodily injury suffered in an accident occurring out of this state,
6 if the accident occurs within the United States, its territories
7 and possessions, or in Canada, and the person whose injury is
the
8 basis of the claim was at the time of the accident a named insured
9 under a personal protection insurance policy, his the spouse of a
10 named insured, a relative of either domiciled in the same
11 household, or an occupant of a vehicle involved in the accident
12 whose owner or registrant was insured under a personal protection
13 insurance policy or has who
provided security approved by the
14 secretary of state under subsection (4) of section 3101.3101(4).
15 (2) If an insurer is required to provide personal protection
16 benefits under this chapter to an out-of-state resident for
17 accidental bodily injury suffered in an accident that occurs
18 outside of this state and the out-of-state resident was not at the
19 time of the accident a named insured under a personal protection
20 insurance policy under this chapter, the spouse of a named insured,
21 or a relative of either domiciled in the same household, the
22 insurer is only liable for the amount of ultimate loss sustained up
23 to $275,000.00.
24 Sec. 3114. (1) Except as provided in subsections (2), (3), and
25 (5), a personal protection insurance policy described in section
26 3101(1) applies to accidental bodily injury to the person named in
27 the policy, the person's spouse, and a relative of either domiciled
1 in the same household, if the injury arises from a motor vehicle
2 accident. A personal injury insurance policy described in section
3 3103(2) applies to accidental bodily injury to the person named in
4 the policy, the person's spouse, and a relative of either domiciled
5 in the same household, if the injury arises from a motorcycle
6 accident. When If personal protection insurance benefits or
7 personal injury benefits described in section 3103(2) are payable
8 to or for the benefit of an injured person under his or her own
9 policy and would also be payable under the policy of his or her
10 spouse, relative, or relative's spouse, the injured person's
11 insurer shall pay all of the benefits and is not entitled to
12 recoupment from the other insurer.
13 (2) A person suffering accidental bodily injury while an
14 operator or a passenger of a motor vehicle operated in the business
15 of transporting passengers shall receive the personal protection
16 insurance benefits to which the person is entitled from the insurer
17 of the motor vehicle. This subsection does not apply to a passenger
18 in the following, unless that passenger is not entitled to personal
19 protection insurance benefits under any other policy:
20 (a) A school bus, as defined by the department of education,
21 providing transportation not prohibited by law.
22 (b) A bus operated by a common carrier of passengers certified
23 by the department of transportation.
24 (c) A bus operating under a government sponsored
25 transportation program.
26 (d) A bus operated by or providing service to a nonprofit
27 organization.
1 (e) A taxicab insured as prescribed in section 3101 or 3102.
2 (f) A bus operated by a canoe or other watercraft, bicycle, or
3 horse livery used only to transport passengers to or from a
4 destination point.
5 (3) An employee, his or her spouse, or a relative of either
6 domiciled in the same household, who suffers accidental bodily
7 injury while an occupant of a motor vehicle owned or registered by
8 the employer, shall receive personal protection insurance benefits
9 to which the employee is entitled from the insurer of the furnished
10 vehicle.
11 (4) Except as provided in subsections (1) to (2) and (3),
a
12 person suffering who
suffers accidental bodily injury
arising from
13 a motor vehicle accident while an occupant of a motor vehicle who
14 is not covered under a personal protection insurance policy as
15 provided in subsection (1) shall claim personal protection
16 insurance benefits from insurers in the following order of
17 priority:
18 (a) The insurer of the owner or registrant of the vehicle
19 occupied.
20 (b) The insurer of the operator of the vehicle occupied.under
21 the assigned claims plan under sections 3171 to 3175.
22 (5) A person suffering who suffers accidental
bodily injury
23 arising from a motor vehicle accident which that shows
evidence of
24 the involvement of a motor vehicle while an operator or passenger
25 of a motorcycle shall claim personal protection insurance benefits
26 from insurers in the following order of priority:
27 (a) The insurer of the owner or registrant of the motor
1 vehicle involved in the accident.
2 (b) The insurer of the operator of the motor vehicle involved
3 in the accident.
4 (c) The motor vehicle insurer of the operator of the
5 motorcycle involved in the accident.
6 (d) The motor vehicle insurer of the owner or registrant of
7 the motorcycle involved in the accident.
8 (6) If 2 or more insurers are in the same order of priority to
9 provide personal protection insurance benefits under subsection
10 (5), an insurer paying that
pays benefits due is entitled to
11 partial recoupment from the other insurers in the same order of
12 priority, together with and
a reasonable amount of partial
13 recoupment of the expense of processing the claim, in order to
14 accomplish equitable distribution of the loss among all of the
15 insurers.
16 Sec. 3115. (1) Except as provided in subsection (1) of section
17 3114, 3114(1), a person suffering who suffers accidental bodily
18 injury while not an occupant of a motor vehicle shall claim
19 personal protection insurance benefits from insurers in the
20 following order of priority:
21 (a) Insurers of owners or registrants of motor vehicles
22 involved in the accident.
23 (b) Insurers of operators of motor vehicles involved in the
24 accident.under the
assigned claims plan under sections 3171 to
25 3175.
26 (2) When If 2 or more insurers are in the same order of
27 priority to provide personal protection insurance benefits, an
1 insurer paying benefits due is entitled to partial recoupment from
2 the other insurers in the same order of priority, together with a
3 reasonable amount of partial recoupment of the expense of
4 processing the claim, in order to accomplish equitable distribution
5 of the loss among such the
insurers.
6 (3) A limit upon on
the amount of personal protection
7 insurance benefits available because of accidental bodily injury to
8 1 person arising from 1 motor vehicle accident shall be determined
9 without regard to the number of policies applicable to the
10 accident.
11 Sec. 3163. (1) An insurer authorized to transact automobile
12 liability insurance and personal and property protection insurance
13 in this state shall file and maintain a written certification that
14 any accidental bodily injury or property damage occurring in this
15 state arising from the ownership, operation, maintenance, or use of
16 a motor vehicle as a motor vehicle by an out-of-state resident who
17 is insured under its automobile liability insurance policies , is
18 subject to the personal and property protection insurance system
19 under this act.
20 (2) A nonadmitted insurer may voluntarily file the
21 certification described in subsection (1).
22 (3) Except as otherwise provided in subsection (4), if a
23 certification filed under subsection (1) or (2) applies to
24 accidental bodily injury or property damage, the insurer and its
25 insureds with respect to that injury or damage have the rights and
26 immunities under this act for personal and property protection
27 insureds, and claimants have the rights and benefits of personal
1 and property protection insurance claimants, including the right to
2 receive benefits from the electing insurer as if it were an insurer
3 of personal and property protection insurance applicable to the
4 accidental bodily injury or property damage.
5 (4) If an insurer of an out-of-state resident is required to
6 provide benefits under subsections (1) to (3) to that any out-of-
7 state resident for accidental bodily injury for an accident in
8 which the out-of-state resident was not an occupant of a motor
9 vehicle registered in this state, arising out of the ownership,
10 operation, or use of a motor vehicle as a motor vehicle, the
11 insurer is only liable for the amount of ultimate loss sustained up
12 to $500,000.00. $275,000.00.
If an insurer of an out-of-state
13 resident is required to provide benefits under subsections (1) to
14 (3) to any resident of this state who is not covered under a
15 personal protection insurance policy described in section 3101(1)
16 for accidental bodily injury arising from the ownership, operation,
17 or use of a motor vehicle in this state, the insurer is only liable
18 for the amount of ultimate loss sustained up to the amount of
19 personal protection insurance benefits an uninsured resident of
20 this state would be able to receive under the assigned claims plan
21 under sections 3171 to 3175. Benefits under this subsection are not
22 recoverable to the extent that benefits covering the same loss are
23 available from other sources, regardless of the nature or number of
24 benefit sources available and regardless of the nature or form of
25 the benefits.
26 Sec. 3172. (1) A person entitled to claim because of
27 accidental bodily injury arising out of the ownership, operation,
1 maintenance, or use of a motor vehicle as a motor vehicle in this
2 state may obtain personal protection insurance benefits through the
3 assigned claims plan if no any of the following exist:
4 (a) No personal protection insurance is applicable to the
5 injury. , no
6 (b) No personal protection insurance applicable to the injury
7 can be identified. , the
8 (c) The personal protection insurance applicable to the injury
9 cannot be ascertained because of a dispute between 2 or more
10 automobile insurers concerning their obligation to provide coverage
11 or the equitable distribution of the loss. , or the
12 (d) The only identifiable personal protection insurance
13 applicable to the injury is, because of financial inability of 1 or
14 more insurers to fulfill their obligations, inadequate to provide
15 benefits up to the maximum prescribed. In that case, unpaid
16 (2) A person making a claim under subsection (1) has the
17 burden of proving that he or she is entitled to the benefits being
18 claimed.
19 (3) Unpaid benefits due or coming due as described in
20 subsection (1) may be collected under the assigned claims plan, and
21 the insurer to which the claim is assigned is entitled to
22 reimbursement from the defaulting insurers to the extent of their
23 financial responsibility.
24 (4) The assigned claims plan of operation governs the
25 requirements for an application for payment of benefits.
26 (5) (2) Except
as otherwise provided in this subsection,
27 personal protection insurance benefits, including benefits arising
1 from accidents occurring before March 29, 1985, payable through the
2 assigned claims plan shall must be reduced to the
extent that
3 benefits covering the same loss are available from other sources,
4 regardless of the nature or number of benefit sources available and
5 regardless of the nature or form of the benefits, to a person
6 claiming personal protection insurance benefits through the
7 assigned claims plan. This subsection only applies if the personal
8 protection insurance benefits are payable through the assigned
9 claims plan because no personal protection insurance is applicable
10 to the injury, no personal protection insurance applicable to the
11 injury can be identified, or the only identifiable personal
12 protection insurance applicable to the injury is, because of
13 financial inability of 1 or more insurers to fulfill their
14 obligations, inadequate to provide benefits up to the maximum
15 prescribed. under
subsection (1)(a), (b), or (d). As used
in this
16 subsection, "sources" and "benefit sources" do not include the
17 program for medical assistance for the medically indigent under the
18 social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, or
19 insurance under the health
insurance for the aged act, title and
20 disabled under subchapter XVIII of the social security act, 42 USC
21 1395 to 1395kkk-1.1395lll.
22 (6) (3) If
the obligation to provide personal protection
23 insurance benefits cannot be ascertained because of a dispute
24 between 2 or more automobile insurers concerning their obligation
25 to provide coverage or the equitable distribution of the loss, and
26 if a method of voluntary payment of benefits cannot be agreed upon
27 among or between the disputing insurers, all of the following
1 apply:
2 (a) The insurers who are parties to the dispute shall, or the
3 claimant may, immediately notify the Michigan automobile insurance
4 placement facility of their inability to determine their statutory
5 obligations.
6 (b) The claim shall be assigned by the Michigan automobile
7 insurance placement facility shall assign the claim to an insurer
8 and the insurer shall immediately provide personal protection
9 insurance benefits to the claimant or claimants entitled to
10 benefits.
11 (c) An action The
insurer to whom the claim is assigned shall
12 be immediately commenced
commence an action on behalf of the
13 Michigan automobile insurance placement facility by the insurer to
14 whom the claim is assigned in
circuit court to declare the rights
15 and duties of any interested party.
16 (d) The insurer to whom the claim is assigned shall join as
17 parties defendant to the action commenced under subdivision (c)
18 each insurer disputing either the obligation to provide personal
19 protection insurance benefits or the equitable distribution of the
20 loss among the insurers.
21 (e) The circuit court shall declare the rights and duties of
22 any interested party whether or not other relief is sought or could
23 be granted.
24 (f) After hearing the action, the circuit court shall
25 determine the insurer or insurers, if any, obligated to provide the
26 applicable personal protection insurance benefits and the equitable
27 distribution, if any, among the insurers obligated, and shall order
1 reimbursement to the Michigan automobile insurance placement
2 facility from the insurer or insurers to the extent of the
3 responsibility as determined by the court. The reimbursement
4 ordered under this subdivision shall must include
all benefits and
5 costs paid or incurred by the Michigan automobile insurance
6 placement facility and all benefits and costs paid or incurred by
7 insurers determined not to be obligated to provide applicable
8 personal protection insurance benefits, including reasonable,
9 actually incurred attorney
fees and interest at the rate prescribed
10 in section 3175 as of applicable
on December 31 of the year
11 preceding the determination of the circuit court.
12 (7) Personal protection insurance benefits payable to a person
13 eligible to receive benefits under the assigned claims plan are
14 limited to the amount of ultimate loss sustained up to $275,000.00.
15 (8) As used in this chapter, "assigned claims plan" means the
16 Michigan assigned claims plan maintained by the Michigan automobile
17 insurance placement facility, including the Michigan assigned
18 claims plan of operation approved by the director under section
19 3171.
20 Sec. 3173. A person who because of a limitation or exclusion
21 in sections 3105 to 3116 is
disqualified from receiving personal
22 protection insurance benefits through the assigned claims plan if
23 any of the following apply:
24 (a) Because of an exclusion in sections 3105 to 3116, the
25 person is disqualified under a policy otherwise applying to his or
26 her accidental bodily injury. is
also disqualified from receiving
27 benefits under the assigned claims plan.
1 (b) Because of a limitation or exclusion under a policy of
2 automobile insurance otherwise applying to his or her accidental
3 bodily injury, the person is disqualified from receiving personal
4 protection insurance benefits.
5 (c) The person is eligible to receive benefits for his or her
6 accidental bodily injury through the Michigan property and casualty
7 guaranty association maintained under chapter 79.
8 Sec. 3173a. (1) The Michigan automobile insurance placement
9 facility shall make an initial determination of a claimant's
10 eligibility review a
claim for benefits under the assigned
claims
11 plan and shall deny an obviously ineligible a claim that is
12 determined to be ineligible in accordance with this chapter or the
13 Michigan assigned claims plan of operation. The Michigan automobile
14 insurance placement facility shall notify the claimant shall be
15 notified promptly in
writing of the denial and the reasons for the
16 denial. If a claim is not determined to be ineligible after the
17 review, the Michigan automobile insurance placement facility shall
18 assign the claim to a servicing insurer. If the claim is assigned
19 to a servicing insurer, the servicing insurer shall make the final
20 determination regarding the eligibility of the claim. A person who
21 fails to cooperate with the Michigan automobile insurance placement
22 facility in accordance with its plan of operation or with a
23 servicing insurer is ineligible for benefits under the assigned
24 claims plan.
25 (2) A person who presents or causes to be presented an oral or
26 written statement, including computer-generated information, as
27 part of or in support of a claim to the Michigan automobile
1 insurance placement facility or to an insurer assigned a claim by
2 the Michigan automobile placement facility for payment or another
3 benefit knowing that the statement contains false information
4 concerning a fact or thing material to the claim commits a
5 fraudulent insurance act under section 4503 that is subject to the
6 penalties imposed under section 4511. A claim that contains or is
7 supported by a fraudulent insurance act as described in this
8 subsection is ineligible for payment or of any benefits
under the
9 assigned claims plan.
10 (3) The Michigan automobile insurance placement facility may
11 contract with other persons for all or a portion of the goods and
12 services necessary for operating and maintaining the assigned
13 claims plan.
14 Sec. 3174. A person claiming through the assigned claims plan
15 shall notify the Michigan automobile insurance placement facility
16 of his or her claim within the time that would have been allowed
17 for filing an action for personal protection insurance benefits if
18 identifiable coverage applicable to the claim had been in effect.
19 The in accordance
with section 3145. On an initial determination of
20 a claimant's eligibility for benefits through the assigned claims
21 plan, the Michigan automobile insurance placement facility shall
22 promptly assign the claim in accordance with the plan of operation
23 and notify the claimant of the identity and address of the insurer
24 to which the claim is assigned. An action by the a claimant
shall
25 not be commenced more than 30 days after receipt of notice of the
26 assignment or the last date on which the action could have been
27 commenced against an insurer of identifiable coverage applicable to
1 the claim, whichever is later.must be commenced as provided in
2 section 3145.
3 Sec. 3175. (1) The assignment of claims under the assigned
4 claims plan shall be made according to procedures established in
5 the assigned claims plan that assure fair allocation of the burden
6 of assigned claims among insurers doing business in this state on a
7 basis reasonably related to the volume of automobile liability and
8 personal protection insurance they write on motor vehicles or the
9 number of self-insured motor vehicles. An insurer to whom claims
10 have been assigned shall make prompt payment of loss in accordance
11 with this act. An insurer is entitled to reimbursement by the
12 Michigan automobile insurance placement facility for the payments,
13 the established loss adjustment cost, and an amount determined by
14 use of the average annual 90-day United States treasury bill yield
15 rate, as reported by the council of economic advisers as of
16 December 31 of the year for which reimbursement is sought, as
17 follows:
18 (a) For the calendar year in which claims are paid by the
19 insurer, the amount shall be determined by applying the specified
20 annual yield rate specified in this subsection to 1/2 of the total
21 claims payments and loss adjustment costs.
22 (b) For the period from the end of the calendar year in which
23 claims are paid by the insurer to the date payments for the
24 operation of the assigned claims plan are due, the amount shall be
25 determined by applying the annual yield rate specified in this
26 subsection to the total claims payments and loss adjustment costs
27 multiplied by a fraction, the denominator of which is 365 and the
1 numerator of which is equal to the number of days that have elapsed
2 between the end of the calendar year and the date payments for the
3 operation of the assigned claims plan are due.
4 (2) The An
insurer assigned a claim by the Michigan automobile
5 insurance placement facility under the assigned claims plan or a
6 person authorized to act on behalf of the plan may bring an action
7 for reimbursement and indemnification of the claim on behalf of the
8 Michigan automobile insurance placement facility. The insurer to
9 whom claims have which
the claim has been assigned shall
preserve
10 and enforce rights to indemnity or reimbursement against third
11 parties and account to the Michigan automobile insurance placement
12 facility for the rights and shall assign the rights to the Michigan
13 automobile insurance placement facility on reimbursement by the
14 Michigan automobile insurance placement facility. This section does
15 not preclude an insurer from entering into reasonable compromises
16 and settlements with third parties against whom rights to indemnity
17 or reimbursement exist. The insurer shall account to the Michigan
18 automobile insurance placement facility for any compromises and
19 settlements. The procedures established under the assigned claims
20 plan shall of
operation must establish reasonable
standards for
21 enforcing rights to indemnity or reimbursement against third
22 parties, including a standard establishing an amount below which
23 actions to preserve and enforce the rights need not be pursued.
24 (3) An action to enforce rights to indemnity or reimbursement
25 against a third party shall must not be commenced after
the later
26 of 2 the
following:
27 (a) Two years after the assignment of the claim to the
1 insurer. or 1
2 (b) One year after the date of the last payment to the
3 claimant.
4 (c) One year after the date the responsible third party is
5 identified.
6 (4) Payments for the operation of the assigned claims plan not
7 paid by the due date shall bear interest at the rate of 20% per
8 annum.
9 (5) The Michigan automobile insurance placement facility may
10 enter into a written agreement with the debtor permitting the
11 payment of the judgment or acknowledgment of debt in installments
12 payable to the Michigan automobile insurance placement facility. A
13 default in payment of installments under a judgment as agreed
14 subjects the debtor to suspension or revocation of his or her motor
15 vehicle license or registration in the same manner as for the
16 failure by an uninsured motorist to pay a judgment by installments
17 under section 3177, including responsibility for expenses as
18 provided in section 3177(4).
19 Sec. 3177. (1) An The
insurer obligated to pay personal
20 protection insurance benefits for accidental bodily injury to a
21 person arising out of the ownership, maintenance, or use of an
22 uninsured motor vehicle as a motor vehicle may recover such all
23 benefits paid, and appropriate incurred loss
adjustment costs and
24 expenses, and incurred attorney fees from the owner or registrant
25 of the uninsured motor vehicle or from his or her estate. Failure
26 of such a person the
owner or registrant to make payment
within 30
27 days after a judgment is entered in an action for recovery under
1 this subsection is a ground for suspension or revocation of his or
2 her motor vehicle registration and license as defined in section 25
3 of the Michigan vehicle code, Act No. 300 of the Public Acts of
4 1949, being section 257.25 of the Michigan Compiled Laws. An 1949
5 PA 300, MCL 257.25. For purposes of this section, an uninsured
6 motor vehicle for the purpose of this section is a motor vehicle
7 with respect to which security as required by sections 3101 and
8 3102 is not in effect at the time of the accident.
9 (2) The Michigan automobile insurance placement facility may
10 make a written agreement with the owner or registrant of an
11 uninsured vehicle or his or her estate permitting the payment of a
12 judgment described in subsection (1) in installments payable to the
13 Michigan automobile insurance placement facility. The motor vehicle
14 registration and license of an owner or registrant who makes a
15 written agreement under this subsection shall not be suspended or
16 revoked and, the motor vehicle registration and license if already
17 suspended or revoked under subsection (1), shall be restored if the
18 debtor enters into a written agreement with the secretary of state
19 permitting the payment of the judgment in installments, if the
20 payment of any installments is not in default.
21 (3) The secretary of state upon receipt of a certified
22 abstract of court record of a judgment described in subsection (1)
23 or notice from the an
insurer or the Michigan automobile insurance
24 placement facility or its designee of an acknowledgment of a debt
25 described in subsection (1) shall
notify the owner or registrant of
26 an uninsured vehicle of the
provisions of subsection (1) at that
27 person's the owner or
registrant's last recorded address
recorded
1 with the secretary of state and inform that person the owner or
2 registrant of the right to enter into a written agreement under
3 this section with the secretary
of state Michigan automobile
4 insurance placement facility or its designee for the payment of the
5 judgment or debt in installments.
6 (4) Expenses for the suspension, revocation, or reinstatement
7 of a motor vehicle registration or license under this section are
8 the responsibility of the owner or registrant or of his or her
9 estate. An owner or registrant whose registration or license is
10 suspended under this section shall pay any reinstatement fee as
11 required under section 320e of the Michigan vehicle code, 1949 PA
12 300, MCL 257.320e.
13 Enacting section 1. This amendatory act takes effect 90 days
14 after the date it is enacted into law.
