Bill Text: MI HB4397 | 2019-2020 | 100th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance; no-fault; coverage and benefits; make miscellaneous changes. Amends secs. 3009, 3109a, 3111, 3116, 3135 & 3151 of 1956 PA 218 (MCL 500.3009 et seq.) & adds secs. 2111f, 3107c & 3107d.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Passed) 2019-06-11 - Assigned Pa 22'19 With Immediate Effect [HB4397 Detail]

Download: Michigan-2019-HB4397-Introduced.html

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HOUSE BILL No. 4397

 

 

March 19, 2019, Introduced by Reps. Sheppard, Miller, LaFave, Kahle and Bellino and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 1833, 1910, 2102, 2103, 2116a, 2118, 2120,

 

3009, 3017, 3020, 3037, 3101, 3102, 3103, 3104, 3131, 3135, 3163,

 

3171, 3172, 3179, 3303, and 6107 (MCL 500.1833, 500.1910, 500.2102,

 

500.2103, 500.2116a, 500.2118, 500.2120, 500.3009, 500.3017,

 

500.3020, 500.3037, 500.3101, 500.3102, 500.3103, 500.3104,

 

500.3131, 500.3135, 500.3163, 500.3171, 500.3172, 500.3179,

 

500.3303, and 500.6107), section 1833 as added by 1989 PA 214,

 

sections 1910, 3171, and 3172 as amended by 2012 PA 204, section

 

2103 as amended by 2016 PA 449, section 2116a as added and sections

 

2118 and 2120 as amended by 2007 PA 35, sections 3009 and 3037 as

 

amended and section 3017 as added by 2016 PA 346, section 3020 as

 

amended by 2006 PA 106, section 3101 as amended by 2017 PA 140,

 

section 3102 as amended by 1990 PA 79, section 3103 as amended by

1986 PA 173, section 3104 as amended by 2002 PA 662, section 3135

 

as amended by 2012 PA 158, section 3163 as amended by 2002 PA 697,

 

section 3303 as amended by 1980 PA 461, and section 6107 as amended

 

by 2017 PA 58.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1833. (1) A risk retention group chartered or doing

 

business in this state shall not join or contribute financially to

 

the property and casualty guaranty association created under

 

chapter 79 or other similar association or mechanism in this state.

 

A risk retention group, its insureds, or claimants against its

 

insureds, shall not receive any benefit from the property and

 

casualty guaranty association or other similar association or

 

mechanism for claims arising under the insurance policies issued by

 

the risk retention group.

 

     (2) A purchasing group obtaining insurance covering its

 

members' risks from an unauthorized insurer not authorized in this

 

state or a risk retention group shall not be covered by the

 

property and casualty guaranty association or similar association

 

or mechanism in this state.

 

     (3) If a purchasing group obtains insurance covering its

 

members' risks from an authorized insurer, authorized in this

 

state, only risks resident or located in this state shall be

 

covered by the property and casualty guaranty association under

 

chapter 79.

 

     (4) A risk retention group chartered or doing business in this

 

state which that offers coverage for the security required under

 

chapter 31, shall be or that offered coverage for the security on

 

December 31, 2021, is a participating member in the Michigan

 

automobile insurance placement facility established under chapter

 

33 for the purpose of sharing in the equitable apportionment among

 

insurers of liability insurance losses and expenses incurred on

 

policies written through that facility. The risk retention group

 

shall submit sufficient information to the commissioner, director,

 

or to whomever the commissioner director may designate, to enable

 

the apportionment on a nondiscriminatory basis of the risk

 

retention group's proportionate share of the losses and expenses.

 

     Sec. 1910. (1) Insurance A licensee shall not be placed by a

 

licensee place insurance with an unauthorized insurer if coverage

 

is available from an authorized insurer.

 

     (2) There is a rebuttable presumption that the following

 

coverages are available from an authorized insurer:

 

     (a) No-fault Before January 1, 2022, no-fault automobile

 

insurance, as required by section 3101, which that is not written

 

for a person who is self-insuring motor vehicles under section

 

3101d.

 

     (b) Automobile liability or motor vehicle liability insurance

 

that complies with section 3009.

 

     (c) (b) Private passenger automobile physical damage coverage.

 

     (d) (c) Homeowners and property insurance on owner-occupied

 

dwellings, the value of which is less than the maximum limits of

 

coverage that are available for the property under the general

 

rules of the Michigan basic property insurance association.

 

     (e) (d) Any coverage readily available from 3 or more

 

authorized insurers, unless the authorized insurers quote a premium

and terms not competitive with the premium and terms quoted by an

 

unauthorized insurer.

 

     (f) (e) Worker's compensation insurance that is not written

 

for an employer that is partially self-insured under section 611 of

 

the worker's disability compensation act of 1969, 1969 PA 317, MCL

 

418.611.

 

     (3) There is a rebuttable presumption that the following

 

coverages are unavailable from an authorized insurer:

 

     (a) Coverages with respect to which 1 portion of the risk is

 

acceptable to authorized insurers, but another portion of the same

 

risk is not acceptable. The entire coverage may be placed with

 

eligible unauthorized insurers if it can be shown that eligible

 

unauthorized insurers will accept the entire coverage but not the

 

rejected portion alone.

 

     (b) Any coverage that the licensee is unable to procure after

 

diligent search among authorized insurers.

 

     (4) The commissioner director shall maintain, on a current

 

basis, a list of those lines of insurance for which coverages are

 

determined by the commissioner director to be generally unavailable

 

in the authorized insurance market. Any person may request in

 

writing that the commissioner director add or remove a coverage

 

from the current list. The commissioner director shall grant or

 

deny a request within 30 days after receiving the written request.

 

The commissioner director shall encourage dissemination of

 

information regarding the availability of coverages for which the

 

public interest necessitates additions to or deletions from the

 

list. The list shall must be published at least quarterly and shall

be revised as required. The commissioner director shall make the

 

list available to all licensees and other members of the public,

 

upon on request.

 

     Sec. 2102. (1) "Affiliate of", or an insurer "affiliated with"

 

an insurer, means an insurer that directly, or indirectly through 1

 

or more intermediaries, controls, or is controlled by, or is under

 

common control with the insurer specified.

 

     (2) "Automobile insurance" means insurance for private

 

passenger nonfleet automobiles which provides any of the following:

 

     (a) Automobile liability or motor vehicle liability insurance

 

that complies with section 3009.

 

     (b) (a) Security required pursuant to under section 3101.

 

     (c) (b) Personal protection, property protection, and residual

 

liability insurance for amounts in excess of the amounts required

 

under chapter 31.

 

     (d) (c) Insurance coverages customarily known as comprehensive

 

and collision.

 

     (e) (d) Other insurance coverages for a private passenger

 

nonfleet automobile as prescribed by rule promulgated by the

 

commissioner pursuant to Act No. 306 of the Public Acts of 1969, as

 

amended, being sections director under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.315 of the

 

Michigan Compiled Laws. A 24.328. The director shall transmit in

 

advance a rule proposed for promulgation by the commissioner

 

pursuant to under this section shall be transmitted in advance to

 

each member of the standing committee committees in the house and

 

in the senate which has with jurisdiction over insurance.

     (3) "Automobile insurance package policy" means a policy which

 

that includes more than 1 of the automobile insurance coverages

 

described in section 2102(2)(a), (b), (c), or (d), subsection (2)

 

in any combination.

 

     (4) "Declination" means any of the following:

 

     (a) Refusal by an agent to submit an application on behalf of

 

an applicant to any of the insurers represented by the agent.

 

     (b) Refusal by an insurer to issue insurance to a person upon

 

on receipt of an application for insurance.

 

     (c) Offering insurance at higher rates with a different

 

insurer than that requested by a person.

 

     (d) Offering coverage with less favorable terms or conditions

 

than those requested by a person.

 

     Sec. 2103. (1) "Eligible person", for automobile insurance,

 

means a person who is an owner or registrant of an automobile

 

registered or to be registered in this state or who holds a valid

 

license to operate a motor vehicle issued by this state, but does

 

not include any of the following:

 

     (a) A person who is not required to maintain security under

 

section 3101, liability insurance on the vehicle insured or to be

 

insured under the policy, unless the person intends to reside in

 

this state for 30 days or more and makes a written statement of

 

that intention on a form approved by the director.

 

     (b) A person whose license to operate a vehicle is under

 

suspension or revocation.

 

     (c) A person who has been convicted within the immediately

 

preceding 5-year period of fraud or intent to defraud involving an

insurance claim or an application for insurance; or an individual

 

who has been successfully denied, within the immediately preceding

 

5-year period, payment by an insurer of a claim in excess of

 

$1,000.00 under an automobile insurance policy, if there is

 

evidence of fraud or intent to defraud involving an insurance claim

 

or application.

 

     (d) A person who, during the immediately preceding 3-year

 

period, has been convicted under, or who has been subject to an

 

order of disposition of the family division of circuit court for a

 

violation of, any of the following:

 

     (i) Section 601d of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.601d, or any other law of this state the violation of which

 

constitutes a felony resulting from the operation of a motor

 

vehicle.

 

     (ii) Section 625 of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.625.

 

     (iii) Section 617, 617a, 618, or 619 of the Michigan vehicle

 

code, 1949 PA 300, MCL 257.617, 257.617a, 257.618, and 257.619.

 

     (iv) Section 626 of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.626; or a similar violation under the laws of any other

 

state or a municipality in or outside of this state.

 

     (e) A person whose vehicle insured or to be insured under the

 

policy fails to meet the motor vehicle safety requirements of

 

sections 683 to 711 of the Michigan vehicle code, 1949 PA 300, MCL

 

257.683 to 257.711.

 

     (f) A person whose policy of automobile insurance has been

 

canceled because of nonpayment of premium or financed premium

within the immediately preceding 2-year period, unless the premium

 

due on a policy for which application has been made is paid in full

 

before issuance or renewal of the policy.

 

     (g) A person who fails to obtain or maintain membership in a

 

club, group, or organization, if membership is a uniform

 

requirement of the insurer as a condition of providing insurance,

 

and if the dues, charges, or other conditions for membership are

 

applied uniformly throughout this state, are not expressed as a

 

percentage of premium, and do not vary with respect to the rating

 

classification of the member except for the purpose of offering a

 

membership fee to family units. Membership fees may vary in

 

accordance with the amount or type of coverage if the purchase of

 

additional coverage, either as to type or amount, is not a

 

condition for reduction of dues or fees.

 

     (h) A person whose driving record for the 3-year period

 

immediately preceding application for or renewal of a policy, has,

 

under section 2119a, an accumulation of more than 6 insurance

 

eligibility points.

 

     (2) "Eligible person", for home insurance, means a person who

 

is the owner-occupant or tenant of a dwelling of any of the

 

following types: a house, a condominium unit, a cooperative unit, a

 

room, or an apartment; or a person who is the owner-occupant of a

 

multiple unit dwelling of not more than 4 residential units.

 

Eligible person does not include any of the following:

 

     (a) A person who has been convicted, in the immediately

 

preceding 5-year period, of 1 or more of the following:

 

     (i) Arson, or conspiracy to commit arson.

     (ii) A crime under sections 72 to 77, 112, 211a, 377a, 377b,

 

or 380 of the Michigan penal code, 1931 PA 328, MCL 750.72 to

 

750.77, 750.112, 750.211a, 750.377a, 750.377b, and 750.380.

 

     (iii) A crime under section 92, 151, 157b, or 218 of the

 

Michigan penal code, 1931 PA 328, MCL 750.92, 750.151, 750.157b,

 

and 750.218, based on a crime described in subparagraph (ii)

 

committed by or on behalf of the person.

 

     (b) A person who has been successfully denied, within the

 

immediately preceding 5-year period, payment by an insurer of a

 

claim under a home insurance policy based on evidence of arson,

 

conspiracy to commit arson, fraud, or conspiracy to commit fraud,

 

committed by or on behalf of the person.

 

     (c) A person who insures or seeks to insure a dwelling that is

 

being used for an illegal or demonstrably hazardous purpose.

 

     (d) A person who refuses to purchase an amount of insurance

 

equal to at least 80% of the replacement cost of the property

 

insured or to be insured under a replacement cost policy.

 

     (e) A person who refuses to purchase an amount of insurance

 

equal to at least 100% of the market value of the property insured

 

or to be insured under a repair cost policy.

 

     (f) A person who refuses to purchase an amount of insurance

 

equal to at least 100% of the actual cash value of the property

 

insured or to be insured under a tenant or renter's home insurance

 

policy.

 

     (g) A person whose policy of home insurance has been canceled

 

because of nonpayment of premium within the immediately preceding

 

2-year period, unless the premium due on the policy is paid in full

before issuance or renewal of the policy.

 

     (h) A person who insures or seeks to insure a dwelling, if the

 

insured value is not any of the following:

 

     (i) For a repair cost policy, at least $15,000.00.

 

     (ii) For a replacement policy, at least $35,000.00 or another

 

amount established by the director. The director may establish an

 

amount under this subparagraph biennially by a rule promulgated

 

under the administrative procedures act of 1969, 1969 PA 306, MCL

 

24.201 to 24.328, and based on changes in applicable construction

 

cost indices.

 

     (i) A person who insures or seeks to insure a dwelling that

 

has physical conditions that clearly present an extreme likelihood

 

of a significant loss under a home insurance policy.

 

     (j) A person whose real property taxes with respect to the

 

dwelling insured or to be insured have been and are delinquent for

 

2 or more years at the time of renewal of, or application for, home

 

insurance.

 

     (k) A person who has failed to procure or maintain membership

 

in a club, group, or organization, if membership is a uniform

 

requirement of the insurer, and if the dues, charges, or other

 

conditions for membership are applied uniformly throughout this

 

state, are not expressed as a percentage of premium, and do not

 

vary with respect to the rating classification of the member except

 

for the purpose of offering a membership fee to family units.

 

Membership fees may vary in accordance with the amount or type of

 

coverage if the purchase of additional coverage, either as to type

 

or amount, is not a condition for reduction of dues or fees.

     (3) "Home insurance" means any of the following, but does not

 

include insurance intended to insure commercial, industrial,

 

professional, or business property, obligations, or liabilities:

 

     (a) Fire insurance for an insured's dwelling of a type

 

described in subsection (2).

 

     (b) If contained in or indorsed to a fire insurance policy

 

providing insurance for the insured's residence, other insurance

 

intended primarily to insure nonbusiness property, obligations, and

 

liabilities.

 

     (c) Other insurance coverages for an insured's residence as

 

prescribed by rule promulgated by the director under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328. The director shall transmit a rule proposed for

 

promulgation under this section in advance to each member of the

 

standing committees in the house of representatives and the senate

 

that have jurisdiction over insurance.

 

     (4) "Insurance eligibility points" means all of the following:

 

     (a) Points calculated, according to the following schedule,

 

for convictions, determinations of responsibility for civil

 

infractions, or findings of responsibility in probate court:

 

     (i) For a violation of any lawful speed limit by more than 15

 

miles per hour, or careless driving, 4 points.

 

     (ii) For a violation of any lawful speed limit by more than 10

 

miles per hour but less than 16 miles per hour, 3 points.

 

     (iii) For a violation of any lawful speed limit by more than 5

 

miles per hour but less than 11 miles per hour, 2 points.

 

     (iv) For a violation of any speed limit by more than 5 miles

per hour but less than 16 miles per hour on a roadway that had a

 

lawfully posted maximum speed of 70 miles per hour or greater as of

 

January 1, 1974, 2 points.

 

     (v) For a violation of a speed limit by less than 6 miles per

 

hour, 1 point.

 

     (vi) For all other moving violations pertaining to the

 

operation of motor vehicles, 2 points.

 

     (b) Points calculated, according to the following schedule,

 

for determinations that the person was substantially at-fault:

 

     (i) For the first substantially at-fault accident, 3 points.

 

     (ii) For the second and each subsequent substantially at-fault

 

accident, 4 points.

 

     (5) "Insurer" means an insurer authorized to transact in this

 

state the kind or combination of kinds of insurance constituting

 

automobile insurance or home insurance.

 

     Sec. 2116a. An automobile insurer shall not refuse to insure,

 

refuse to continue to insure, limit coverage available to, charge a

 

reinstatement fee for, or increase the premiums for automobile

 

insurance solely because a person failed to maintain insurance that

 

was required by section 3101 or that complied with section 3009 for

 

a vehicle owned by the person during the 6-month period immediately

 

preceding application if the person certifies on a form provided by

 

the insurer that the lapse in coverage was because the person was

 

on active duty in the armed forces of the United States for at

 

least 30 consecutive days and that the vehicle was not driven or

 

moved during the 6-month period immediately preceding application

 

or during the period of time the insurance was not maintained,

whichever period is shorter. This section applies only to an

 

eligible person.

 

     Sec. 2118. (1) As a condition of maintaining its certificate

 

of authority, an insurer shall not refuse to insure, refuse to

 

continue to insure, or limit coverage available to an eligible

 

person for automobile insurance, except in accordance with

 

underwriting rules established pursuant to as provided in this

 

section and sections 2119 and 2120.

 

     (2) The underwriting rules that an insurer may establish for

 

automobile insurance shall must be based only on the following:

 

     (a) Criteria identical to the standards set forth in section

 

2103(1).

 

     (b) The insurance eligibility point accumulation in excess of

 

the amounts established by section 2103(1) of a member of the

 

household of the eligible person insured or to be insured, if the

 

member of the household usually accounts for 10% or more of the use

 

of a vehicle insured or to be insured. For purposes of this

 

subdivision, there is a rebuttable presumption that a person who is

 

the principal driver for 1 automobile insurance policy shall be

 

rebuttably presumed does not to usually account for more than 10%

 

of the use of other vehicles another vehicle of the household that

 

is not insured under the policy of that the person.

 

     (c) With respect to a vehicle insured or to be insured,

 

substantial modifications from the vehicle's original manufactured

 

state for purposes of increasing the speed or acceleration

 

capabilities of the vehicle.

 

     (d) Except as otherwise provided in section 2116a, failure by

the person to provide proof that insurance that was required by

 

section 3101 or that complied with section 3009 was maintained in

 

force effect with respect to any vehicle that was both owned by the

 

person and driven or moved by the person or by a member of the

 

household of the person during the 6-month period immediately

 

preceding application. Such The proof shall take the form of must

 

be a certification by the person on a form provided by the insurer

 

that the vehicle was not driven or moved without maintaining the

 

insurance that was required by section 3101 or that complied with

 

section 3009, as applicable, during the 6-month period immediately

 

preceding application.

 

     (e) Type of vehicle insured or to be insured, based on 1 of

 

the following, without regard to the age of the vehicle:

 

     (i) The vehicle is being of limited production or of custom

 

manufacture.

 

     (ii) The insurer does not have having a rate lawfully in

 

effect for the type of vehicle.

 

     (iii) The vehicle represents representing exposure to

 

extraordinary expense for repair or replacement under comprehensive

 

or collision coverage.

 

     (f) Use of a vehicle insured or to be insured for

 

transportation of passengers for hire, for rental purposes, or for

 

commercial purposes. Rules under this subdivision shall must not be

 

based on the use of a vehicle for volunteer or charitable purposes

 

or for which reimbursement for normal operating expenses is

 

received.

 

     (g) Payment of a minimum deposit at the time of application or

renewal, not to exceed the smallest deposit required under an

 

extended payment or premium finance plan customarily used by the

 

insurer.

 

     (h) For purposes of requiring comprehensive deductibles of not

 

more than $150.00, or of refusing to insure if the person refuses

 

to accept a required deductible, the claim experience of the person

 

with respect to comprehensive coverage.

 

     (i) Total abstinence from the consumption of alcoholic

 

beverages except if such the beverages are consumed as part of a

 

religious ceremony. However, an insurer shall not utilize an

 

underwriting rule based on this subdivision unless the insurer has

 

been was authorized to transact automobile insurance in this state

 

prior to before January 1, 1981, and has consistently utilized such

 

an underwriting rule as part of the insurer's automobile insurance

 

underwriting since being authorized to transact automobile

 

insurance in this state.

 

     (j) One or more incidents involving a threat, harassment, or

 

physical assault by the insured or applicant for insurance on an

 

insurer employee, agent, or agent employee while acting within the

 

scope of his or her employment so long as if a report of the

 

incident was filed with an appropriate law enforcement agency.

 

     Sec. 2120. (1) Affiliated insurers may establish underwriting

 

rules so that each affiliate will provide automobile insurance only

 

to certain eligible persons. This subsection shall apply applies

 

only if an eligible person can obtain automobile insurance from 1

 

of the affiliates. The underwriting rules shall be in compliance

 

must comply with this section and sections 2118 and 2119.

     (2) An insurer may establish separate rating plans so that

 

certain eligible persons are provided automobile insurance under 1

 

rating plan and other eligible persons are provided automobile

 

insurance under another rating plan. This subsection shall apply

 

applies only if all eligible persons can obtain automobile

 

insurance under a rating plan of the insurer. Underwriting The

 

insurer shall establish underwriting rules consistent with this

 

section and sections 2118 and 2119 shall be established to define

 

the rating plan applicable to each eligible person.

 

     (3) Underwriting rules under this section shall must be based

 

only on the following:

 

     (a) With respect to a vehicle insured or to be insured,

 

substantial modifications from the vehicle's original manufactured

 

state for purposes of increasing the speed or acceleration

 

capabilities of the vehicle.

 

     (b) Except as otherwise provided in section 2116a, failure of

 

the person to provide proof that insurance that was required by

 

section 3101 or that complied with section 3009, as applicable, was

 

maintained in force with respect to any vehicle owned and operated

 

by the person or by a member of the household of the person during

 

the 6-month period immediately preceding application or renewal of

 

the policy. Such The proof shall take the form of must be a

 

certification by the person that the required insurance was

 

maintained in force effect for the 6-month period with respect to

 

such the vehicle.

 

     (c) For purposes of insuring persons who have refused a

 

deductible lawfully required under section 2118(2)(h), the claim

experience of the person with respect to comprehensive coverage.

 

     (d) Refusal of the person to pay a minimum deposit required

 

under section 2118(2)(g).

 

     (e) A person's insurance eligibility point accumulation under

 

section 2103(1)(h), or the total insurance eligibility point

 

accumulation of all persons who account for 10% or more of the use

 

of 1 or more vehicles insured or to be insured under the policy.

 

     (f) The type of vehicle insured or to be insured as provided

 

in section 2118(2)(e).

 

     Sec. 3009. (1) An insurer shall not deliver or issue for

 

delivery in this state with respect to a motor vehicle registered

 

or principally garaged in this state an automobile liability or

 

motor vehicle liability policy insuring against loss resulting from

 

liability imposed by law for property damage, bodily injury, or

 

death suffered by any person arising out of the ownership,

 

maintenance, or use of a motor vehicle shall not be delivered or

 

issued for delivery in this state with respect to any motor vehicle

 

registered or principally garaged in this state unless the

 

liability coverage is subject to all of the following limits:

 

     (a) A limit, exclusive of interest and costs, of not less than

 

$20,000.00 because of bodily injury to or death of 1 person in any

 

1 accident.

 

     (b) Subject to the limit for 1 person in subdivision (a), a

 

limit of not less than $40,000.00 because of bodily injury to or

 

death of 2 or more persons in any 1 accident.

 

     (c) A limit of not less than $10,000.00 because of injury to

 

or destruction of property of others in any accident.

     (2) If authorized by the insured, automobile liability or

 

motor vehicle liability coverage may be excluded when a vehicle is

 

operated by a named person. An exclusion under this subsection is

 

not valid unless the following notice is on the face of the policy

 

or the declaration page or certificate of the policy and on the

 

certificate of insurance:

 

     Warning—when a named excluded person operates a vehicle all

 

liability coverage is void—no one is insured. Owners of the vehicle

 

and others legally responsible for the acts of the named excluded

 

person remain fully personally liable.

 

     (3) A liability policy described in subsection (1) may exclude

 

coverage for liability as provided in section 3017.

 

     (4) An insurer that has issued an insurance policy on a motor

 

vehicle that is not driven or moved on a highway may allow the

 

insured owner or registrant of the motor vehicle to delete a

 

portion of the coverages under the policy and maintain the

 

comprehensive coverage portion of the policy in effect. If an

 

insurer deletes coverages from an automobile insurance policy

 

pursuant to section 3101, under this section, the insurer shall

 

send documentary evidence of the deletion to the insured.

 

     (5) After December 31, 2021, an insurer shall not issue or

 

renew with respect to a motor vehicle registered or principally

 

garaged in this state an automobile insurance policy that provides

 

security for payment of benefits under personal protection

 

insurance or property protection insurance under chapter 31.

 

     Sec. 3017. (1) An authorized insurer that issues an insurance

 

policy insuring a personal vehicle may exclude all coverage

afforded under the policy for any loss or injury that occurs while

 

a transportation network company driver is logged on to a

 

transportation network company digital network or while a

 

transportation network company driver is providing a transportation

 

network company prearranged ride. By way of example and not as

 

limitation, all of the following coverages may be excluded under

 

this section:

 

     (a) Residual liability insurance required under sections

 

section 3009 and or 3101.

 

     (b) Personal protection and property protection insurance

 

required under section 3101.

 

     (c) Uninsured and underinsured motorist coverage.

 

     (d) Comprehensive coverage.

 

     (e) Collision coverage, including coverage required to be

 

offered under section 3037.

 

     (2) This section does not require an automobile insurance

 

policy to provide coverage under any of the following

 

circumstances:

 

     (a) While a transportation network company driver is logged on

 

to a transportation network company digital network.

 

     (b) While a transportation network company driver is engaged

 

in providing a transportation network company prearranged ride.

 

     (c) While a transportation network company driver otherwise

 

uses a vehicle to transport passengers for compensation.

 

     (3) This section does not preclude an insurer from providing

 

coverage for a transportation network company driver's personal

 

vehicle by contract or endorsement.

     (4) An insurer that excludes the coverage described in

 

subsection (1) does not have a duty to defend or indemnify for any

 

claim that is expressly excluded. This section does not invalidate

 

or limit an exclusion contained in a policy, including a policy in

 

use or approved for use in this state before the effective date of

 

this section, March 21, 2017, that excludes coverage for vehicles

 

that are used to carry individuals or property for a charge or that

 

are available for hire by the public. An insurer that defends or

 

indemnifies for a claim against a transportation network company

 

driver who is excluded under the terms of the policy has a right of

 

contribution against other insurers that provided automobile

 

insurance to the transportation network company driver in

 

satisfaction of the coverage requirements of section 23 of the

 

limousine, taxicab, and transportation network company act, 2016 PA

 

345, MCL 257.2123, at the time of the loss.

 

     (5) An insurer that provides automobile insurance to a

 

transportation network company shall comply with section 23(5),

 

(6), and (9) of the limousine, taxicab, and transportation network

 

company act, 2016 PA 345, MCL 257.2123.

 

     (6) During an investigation of whether a claim is covered

 

under an insurance policy, a transportation network company and any

 

insurer that provides coverage under section 23 of the limousine,

 

taxicab, and transportation network company act, 2016 PA 345, MCL

 

257.2123, shall cooperate to facilitate the exchange of relevant

 

information with persons who are directly involved and any insurer

 

of the transportation network company driver. Relevant information

 

required to be exchanged under this subsection includes, but is not

limited to, all of the following:

 

     (a) The times that the transportation network company driver

 

logged on to and logged off of the transportation network company

 

digital network during the 12 hours preceding the accident and the

 

12 hours following the accident.

 

     (b) A clear description of the coverage, exclusions, and

 

limits under any insurance policy maintained as required by section

 

23 of the limousine, taxicab, and transportation network company

 

act, 2016 PA 345, MCL 257.2123.

 

     (7) As used in this section, all of the following terms mean

 

those terms as defined in section 2 of the limousine, taxicab, and

 

transportation network company act, 2016 PA 345, MCL 257.2102:

 

     (a) "Personal vehicle".

 

     (b) "Prearranged ride".

 

     (b) (c) "Transportation network company".

 

     (c) (d) "Transportation network company digital network".

 

     (d) (e) "Transportation network company driver".

 

     (e) "Transportation network company prearranged ride".

 

     Sec. 3020. (1) A An authorized insurer shall not issue or

 

deliver in this state a policy of casualty insurance, except not

 

including worker's compensation and mortgage guaranty insurance,

 

but including all classes of motor vehicle coverage, shall not be

 

issued or delivered in this state by an insurer authorized to do

 

business in this state for which a premium or advance assessment is

 

charged, unless the policy contains the following provisions:

 

     (a) That Except as otherwise provided in subsections (2) to

 

(4), that the policy may be canceled at any time at the request of

the insured, in which case the insurer shall will refund the excess

 

of paid premium or assessment above the pro rata rates for the

 

expired time. , except as otherwise provided in subsections (2),

 

(3), and (4).

 

     (b) Except as otherwise provided in subdivision (d), that the

 

policy may be canceled at any time by the insurer by mailing to the

 

insured at the insured's address last known to the insurer or an

 

authorized agent of the insurer, with postage fully prepaid, a not

 

less than 10 days' written notice of cancellation with or without

 

tender of the excess of paid premium or assessment above the pro

 

rata premium for the expired time.

 

     (c) That the minimum earned premium on any policy canceled

 

pursuant to under this subsection, other than automobile insurance

 

as defined in section 2102(2)(a), and (b), shall and (c), will not

 

be less than the pro rata premium for the expired time or $25.00,

 

whichever is greater.

 

     (d) That an insurer may refuse to renew a malpractice

 

insurance policy only by mailing to the insured at the insured's

 

address last known to the insurer or an authorized agent of the

 

insurer, with postage fully prepaid, a not less than 60 days'

 

written notice of refusal to renew. As used in this subdivision,

 

"malpractice insurance" means malpractice insurance as described in

 

section 624(1)(h).

 

     (2) An insurer may file a rule with the commissioner director

 

providing for a minimum retention of premium for automobile

 

insurance as defined in section 2102(2)(a), and (b), and (c). The

 

rule shall must describe the circumstances under which the

retention is applied and shall set forth the amount to be retained,

 

which is subject to the approval of the commissioner. director. The

 

rule shall must include, but need not be limited to, the following

 

provisions:

 

     (a) That a minimum retention shall will be applied only when

 

the amount exceeds the amount that would have been retained had the

 

policy been canceled on a pro rata basis.

 

     (b) That a minimum retention does not apply to renewal

 

policies.

 

     (c) That a minimum retention does not apply when a policy is

 

canceled for the following reasons:

 

     (i) The insured is no longer required to maintain security

 

pursuant to under section 3101(1) or an insurance policy that

 

complies with section 3009.

 

     (ii) The insured has replaced the automobile insurance policy

 

being canceled with an automobile insurance policy from another

 

insurer and provides proof of the replacement coverage to the

 

canceling insurer.

 

     (3) Notwithstanding subsection (1), an insurer may issue a

 

noncancelable, nonrefundable, 6-month prepaid automobile insurance

 

policy in order for an the insured to meet the registration

 

requirements of section 227a of the Michigan vehicle code, 1949 PA

 

300, MCL 257.227a.

 

     (4) An insurer may provide for a short rate premium for

 

insurance on a motorcycle, watercraft, off-road vehicle, or

 

snowmobile. As used in this subsection:

 

     (a) "Motorcycle" means that term as defined in section 3101.

     (b) "Off-road vehicle" means an ORV as defined in section

 

81101 of the natural resources and environmental protection act,

 

1994 PA 451, MCL 324.81101.

 

     (c) "Snowmobile" means that term as defined in section 82101

 

of the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.82101.

 

     (d) "Watercraft" means that term as defined in section 80301

 

of the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.80301.

 

     (5) Cancellation as prescribed in this section is without

 

prejudice to any claim originating before the cancellation. The

 

mailing of notice is prima facie proof of notice. Delivery of

 

written notice is equivalent to mailing.

 

     (6) A notice of cancellation, including a cancellation notice

 

under section 3224, shall must be accompanied by a statement that

 

the insured shall may not operate or permit the operation of the

 

vehicle to which the notice of cancellation is applicable, or

 

operate any other vehicle, unless the vehicle is insured as

 

required by law.

 

     (7) An insurer who wishes to provide for a short rate premium

 

under subsection (4) shall file with the commissioner pursuant to

 

director as provided in chapter 24 or 26 a rule establishing a

 

short rate premium. The rule shall must describe the circumstances

 

under which the short rate is applied and shall set forth the

 

amount or percentage to be retained.

 

     Sec. 3037. (1) At the time a new applicant for the insurance

 

required by section 3101 or insurance that complies with section

3009 for a private passenger nonfleet automobile makes an initial

 

written application to the an insurer, an the insurer shall offer

 

both of the following collision coverages to the applicant:

 

     (a) Limited collision coverage, which must pay for collision

 

damage to the insured vehicle without a deductible amount if the

 

operator of the vehicle is not substantially at fault in the

 

accident from which the damage arose.

 

     (b) Broad form collision coverage, which must pay for

 

collision damage to the insured vehicle regardless of fault, with

 

deductibles in the amounts as approved by the director, which

 

deductibles must be waived if the operator of the vehicle is not

 

substantially at fault in the accident from which the damage arose.

 

     (2) In addition to the coverages offered under subsection (1),

 

an insurer may offer standard and limited collision coverage may be

 

offered with deductibles as approved by the director.

 

     (3) An insurer may limit collision coverage offered under this

 

section as provided in section 3017.

 

     (4) If the an applicant is required by the an insurer to sign

 

the a written application form described in subsection (1), and if

 

the applicant chooses to reject both of the collision coverages, or

 

limited collision without a deductible, offered under subsection

 

(1), the rejection must be made in writing, either on a separate

 

form, as part of the application, or in some combination of these,

 

as approved by the director. The rejection statement must inform

 

the applicant of his or her rights if there is damage to the

 

insured vehicle under the alternative coverage option selected.

 

     (5) If a written application is made by mail, and if the

applicant fails to sign or return a written rejection statement as

 

required by subsection (4), the requirements of subsection (4) are

 

considered to be satisfied with respect to the insurer if all of

 

the following occur:

 

     (a) The application provides the applicant with an opportunity

 

to select the coverages required to be offered under subsection

 

(1).

 

     (b) The applicant is requested to sign the rejection

 

statement, either as part of the application or as a separate form

 

issued with the application, if the applicant fails to select

 

either of the coverages specified in subsection (1).

 

     (c) The applicant signed the application as otherwise required

 

by the insurer.

 

     (6) At the time of the an initial written application

 

described in subsection (1), an agent or insurer shall provide the

 

applicant with a written explanation of collision coverage options

 

in easily understandable language, if that the information is not

 

contained in the application form.

 

     (7) At least annually in conjunction with the renewal of a

 

private passenger nonfleet automobile insurance policy, or at the

 

time of an addition, deletion, or substitution of a vehicle under

 

an existing policy, other than a group policy, an insurer shall

 

inform the policyholder, on a form approved by the director, of all

 

of the following:

 

     (a) The current status of collision coverage, if any, for the

 

vehicle or vehicles affected by the renewal or change and the

 

rights of the insured under the current coverage if the vehicle is

damaged.

 

     (b) The collision coverages available under the policy and the

 

rights of the insured under each collision option if the vehicle is

 

damaged.

 

     (c) Procedures for the policyholder to follow if he or she

 

wishes to change the current collision coverage.

 

     (8) As used in this section:

 

     (a) "Collision damage" does not include losses customarily

 

insured under comprehensive coverages.

 

     (b) "Substantially at fault" means a person's action or

 

inaction was more than 50% of the cause of the accident.

 

     Sec. 3101. (1) The Before January 1, 2022, the owner or

 

registrant of a motor vehicle required to be registered in this

 

state shall maintain security for payment of benefits under

 

personal protection insurance, property protection insurance, and

 

residual liability insurance. Security under this subsection is

 

only required to be in effect during the period the motor vehicle

 

is driven or moved on a highway. Notwithstanding any other

 

provision in this act, an insurer that has issued an automobile

 

insurance policy on a motor vehicle that is not driven or moved on

 

a highway may allow the insured owner or registrant of the motor

 

vehicle to delete a portion of the coverages required by this

 

subsection under the policy and maintain the comprehensive coverage

 

portion of the policy in effect.

 

     (2) As used in this chapter:

 

     (a) "Automobile insurance" means that term as defined in

 

section 2102.

     (b) "Commercial quadricycle" means a vehicle to which all of

 

the following apply:

 

     (i) The vehicle has fully operative pedals for propulsion

 

entirely by human power.

 

     (ii) The vehicle has at least 4 wheels and is operated in a

 

manner similar to a bicycle.

 

     (iii) The vehicle has at least 6 seats for passengers.

 

     (iv) The vehicle is designed to be occupied by a driver and

 

powered either by passengers providing pedal power to the drive

 

train of the vehicle or by a motor capable of propelling the

 

vehicle in the absence of human power.

 

     (v) The vehicle is used for commercial purposes.

 

     (vi) The vehicle is operated by the owner of the vehicle or an

 

employee of the owner of the vehicle.

 

     (c) "Electric bicycle" means that term as defined in section

 

13e of the Michigan vehicle code, 1949 PA 300, MCL 257.13e.

 

     (d) "Golf cart" means a vehicle designed for transportation

 

while playing the game of golf.

 

     (e) "Highway" means highway or street as that term is defined

 

in section 20 of the Michigan vehicle code, 1949 PA 300, MCL

 

257.20.

 

     (f) "Moped" means that term as defined in section 32b of the

 

Michigan vehicle code, 1949 PA 300, MCL 257.32b.

 

     (g) "Motorcycle" means a vehicle that has a saddle or seat for

 

the use of the rider, is designed to travel on not more than 3

 

wheels in contact with the ground, and is equipped with a motor

 

that exceeds 50 cubic centimeters piston displacement. For purposes

of this subdivision, the wheels on any attachment to the vehicle

 

are not considered as wheels in contact with the ground. Motorcycle

 

does not include a moped or an ORV.

 

     (h) "Motorcycle accident" means a loss that involves the

 

ownership, operation, maintenance, or use of a motorcycle as a

 

motorcycle, but does not involve the ownership, operation,

 

maintenance, or use of a motor vehicle as a motor vehicle.

 

     (i) "Motor vehicle" means a vehicle, including a trailer, that

 

is operated or designed for operation on a public highway by power

 

other than muscular power and has more than 2 wheels. Motor vehicle

 

does not include any of the following:

 

     (i) A motorcycle.

 

     (ii) A moped.

 

     (iii) A farm tractor or other implement of husbandry that is

 

not subject to the registration requirements of the Michigan

 

vehicle code under section 216 of the Michigan vehicle code, 1949

 

PA 300, MCL 257.216.

 

     (iv) An ORV.

 

     (v) A golf cart.

 

     (vi) A power-driven mobility device.

 

     (vii) A commercial quadricycle.

 

     (viii) An electric bicycle.

 

     (j) "Motor vehicle accident" means a loss that involves the

 

ownership, operation, maintenance, or use of a motor vehicle as a

 

motor vehicle regardless of whether the accident also involves the

 

ownership, operation, maintenance, or use of a motorcycle as a

 

motorcycle.

     (k) "ORV" means a motor-driven recreation vehicle designed for

 

off-road use and capable of cross-country travel without benefit of

 

road or trail, on or immediately over land, snow, ice, marsh,

 

swampland, or other natural terrain. ORV includes, but is not

 

limited to, a multitrack or multiwheel drive vehicle, a motorcycle

 

or related 2-wheel, 3-wheel, or 4-wheel vehicle, an amphibious

 

machine, a ground effect air cushion vehicle, an ATV as defined in

 

section 81101 of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.81101, or other means of transportation

 

deriving motive power from a source other than muscle or wind. ORV

 

does not include a vehicle described in this subdivision that is

 

registered for use on a public highway and has the security

 

required under subsection (1) or section 3103 in effect.

 

     (l) "Owner" means any of the following:

 

     (i) A person renting a motor vehicle or having the use of a

 

motor vehicle, under a lease or otherwise, for a period that is

 

greater than 30 days.

 

     (ii) A person renting a motorcycle or having the use of a

 

motorcycle under a lease for a period that is greater than 30 days,

 

or otherwise for a period that is greater than 30 consecutive days.

 

A person who borrows a motorcycle for a period that is less than 30

 

consecutive days with the consent of the owner is not an owner

 

under this subparagraph.

 

     (iii) A person that holds the legal title to a motor vehicle

 

or motorcycle, other than a person engaged in the business of

 

leasing motor vehicles or motorcycles that is the lessor of a motor

 

vehicle or motorcycle under a lease that provides for the use of

the motor vehicle or motorcycle by the lessee for a period that is

 

greater than 30 days.

 

     (iv) A person that has the immediate right of possession of a

 

motor vehicle or motorcycle under an installment sale contract.

 

     (m) "Power-driven mobility device" means a wheelchair or other

 

mobility device powered by a battery, fuel, or other engine and

 

designed to be used by an individual with a mobility disability for

 

the purpose of locomotion.

 

     (n) "Registrant" does not include a person engaged in the

 

business of leasing motor vehicles or motorcycles that is the

 

lessor of a motor vehicle or motorcycle under a lease that provides

 

for the use of the motor vehicle or motorcycle by the lessee for a

 

period that is longer than 30 days.

 

     (3) Security required by subsection (1) may be provided under

 

a policy issued by an authorized insurer that affords insurance for

 

the payment of benefits described in subsection (1). A policy of

 

insurance represented or sold as providing security is considered

 

to provide insurance for the payment of the benefits.

 

     (4) Security required by subsection (1) may be provided by any

 

other method approved by the secretary of state as affording

 

security equivalent to that afforded by a policy of insurance, if

 

proof of the security is filed and continuously maintained with the

 

secretary of state throughout the period the motor vehicle is

 

driven or moved on a highway. The person filing the security has

 

all the obligations and rights of an insurer under this chapter.

 

When the context permits, "insurer" as used in this chapter,

 

includes a person that files the security as provided in this

section.

 

     (5) An insurer that issues a policy that provides the security

 

required under subsection (1) may exclude coverage under the policy

 

as provided in section 3017.

 

     Sec. 3102. (1) A Before January 1, 2022, a nonresident owner

 

or registrant of a motor vehicle or motorcycle not registered in

 

this state shall not operate or permit the motor vehicle or

 

motorcycle to be operated in this state for an aggregate of more

 

than 30 days in any calendar year unless he or she continuously

 

maintains security for the payment of benefits pursuant to under

 

this chapter.

 

     (2) An owner or registrant of a motor vehicle or motorcycle

 

with respect to which security is required under this chapter, who

 

operates the motor vehicle or motorcycle or permits it to be

 

operated upon a public highway in this state, without having in

 

full force and effect security complying with this section or

 

section 3101 or 3103 is guilty of a misdemeanor. A person who

 

operates a motor vehicle or motorcycle upon on a public highway in

 

this state with the knowledge that the owner or registrant does not

 

have security in full force and effect as required under this

 

chapter is guilty of a misdemeanor . A person convicted of a

 

misdemeanor under this section shall be fined punishable by a fine

 

of not less than $200.00 nor and not more than $500.00 , imprisoned

 

or imprisonment for not more than 1 year, or both.

 

     (3) The failure of a person to produce evidence that a motor

 

vehicle or motorcycle has had in full force and effect security

 

complying with this section or section 3101 or 3103 on the date of

the issuance of the citation, creates a rebuttable presumption in a

 

prosecution under subsection (2) that the motor vehicle or

 

motorcycle did not have in full force and effect security complying

 

with this section or section 3101 or 3103 on the date of the

 

issuance of the citation.

 

     Sec. 3103. (1) An owner or registrant of a motorcycle shall

 

provide security against loss resulting from liability imposed by

 

law for property damage, bodily injury, or death suffered by a

 

person arising out of the ownership, maintenance, or use of that

 

the motorcycle. The security shall conform with must meet the

 

requirements of section 3009(1).

 

     (2) Each insurer transacting insurance in this state which

 

that affords coverage for a motorcycle as described in subsection

 

(1) also shall offer, to an owner or registrant of a motorcycle,

 

security for the payment of first-party medical benefits only, in

 

increments of $5,000.00, payable in the event if the owner or

 

registrant is involved in a motorcycle accident. An insurer

 

providing first-party medical benefits under this subsection may

 

offer, at appropriate premium rates, deductibles, provisions for

 

the coordination of these benefits, and provisions for the

 

subtraction of other benefits provided or required to be provided

 

under the laws of any state or the federal government, subject to

 

the prior approval of the commissioner. director. These deductibles

 

and provisions shall must apply only to benefits payable to the

 

person named in the policy, the spouse of the insured, and any

 

relative of either domiciled in the same household.

 

     (3) This section does not apply after December 31, 2021.

     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, or that was engaged in writing those

 

coverages on December 31, 2021, as a condition of its authority to

 

transact insurance in this state, shall be 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, or that was engaged in writing those coverages on

 

December 31, 2021, as a condition of its authority to transact

 

insurance in this state, shall be is considered to be 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 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.

 

Beginning July 1, 2013, this $500,000.00 amount shall 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, and rounded to the

 

nearest $5,000.00. This biennial adjustment shall be calculated by

 

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

 

date.

 

     (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 December 31, 2021, $555,000.00.

 

     (3) An Before January 1, 2022, 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.

 

After December 31, 2021, an insurer shall not withdraw from the

 

association.

 

     (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 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 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 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 premium shall must

 

include an amount to cover incurred but not reported losses for the

 

period and may be adjusted for any excess or deficient premiums

 

from previous periods. Excesses or deficiencies from previous

 

periods may 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, or, after

 

December 31, 2021, insurance that complies with section 3009,

 

written in this state during the period to which the premium

 

applies, multiplied by the average premium per car. The average

 

premium per car shall be is the total premium calculated divided by

 

the total written car years of insurance providing the security

 

required by section 3101(1) or 3103(1), or, after December 31,

 

2021, insurance that complies with section 3009, written in this

 

state of all members during the period to which the premium

 

applies. 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 is entitled to 1 vote. The initial term of office of a director

 

shall be 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, consistent with the membership composition

 

requirements in subsections (11) and (13). Terms of the directors

 

shall must be staggered so that the terms of all the directors do

 

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

 

term of more than 4 years.

 

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

 

commissioner director of the department, who shall be serve as an

 

ex officio member of the board without vote.

 

     (14) Each director shall be appointed by the commissioner and

 

The director of the department shall appoint the directors. A

 

director shall serve until that member's his or her successor is

 

selected and qualified. The chairperson of the board shall be

 

elected by the board. A elect a chairperson. 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. The chairperson shall

 

retain the right to may vote on all issues. Four members of the

 

board constitute a quorum.

 

     (16) An annual report of the operations of the association in

 

a form and detail as may be determined by the board shall must 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 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 insurer authorized to write

 

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

 

this state, as provided in this section, A member of the

 

association 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 a member are

 

the members 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.

 

     (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 or for loss occurrences under motor

 

vehicle accident policies issued or renewed after December 31,

 

2021.

 

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

 

     (a) "Consumer price index" means the percentage of change in

 

the consumer price index for all urban consumers in the United

 

States city average for all items for the 24 months prior to

 

October 1 of the year prior to the July 1 effective date of the

 

biennial adjustment under subsection (2)(k) as reported by the

 

United States department of labor, bureau of labor statistics, and

 

as certified by the commissioner.

 

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

 

providing the coverages required under section 3101(1).

 

     (d) (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. 3131. (1) Residual liability insurance shall must cover

 

bodily injury and property damage which that occurs within in the

United States, its territories and possessions, or in Canada. This

 

insurance shall must afford coverage equivalent to that required as

 

evidence of automobile liability insurance under the financial

 

responsibility laws of the place in which the injury or damage

 

occurs. In this state, this insurance shall must afford coverage

 

for automobile liability retained by section 3135.

 

     (2) This section shall does not require coverage in this state

 

other than that required by section 3009(1). This section shall

 

apply applies to all insurance contracts in force as of October 1,

 

1973, or entered into after that date.October 1, 1973 and before

 

January 1, 2022.

 

     Sec. 3135. (1) A person whose tort liability is abolished

 

under subsection (3) 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:This

 

subsection applies after December 31, 2021 only if the insurance

 

policy that provides the security was issued or most recently

 

renewed before January 1, 2022. This subsection does not apply 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 sections 3107 to 3110 in excess of the daily,

 

monthly, and 3-year limitations contained in those sections. 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. 3163. (1) An Before January 1, 2022, an insurer

 

authorized to transact automobile liability insurance and personal

 

and property protection insurance in this state shall file and

 

maintain a written certification that any accidental bodily injury

 

or property damage occurring in this state arising from the

 

ownership, operation, maintenance, or use of a motor vehicle as a

 

motor vehicle by an out-of-state resident who is insured under its

 

automobile liability insurance policies, is subject to the personal

 

and property protection insurance system under this act.chapter.

 

     (2) A nonadmitted insurer may voluntarily file the

 

certification described in subsection (1).

 

     (3) Except as otherwise provided in subsection (4), if a

certification filed under subsection (1) or (2) applies to

 

accidental bodily injury or property damage, the insurer and its

 

insureds with respect to that injury or damage have the rights and

 

immunities under this act for personal and property protection

 

insureds, and claimants have the rights and benefits of personal

 

and property protection insurance claimants, including the right to

 

receive benefits from the electing insurer as if it were an insurer

 

of personal and property protection insurance applicable to the

 

accidental bodily injury or property damage.

 

     (4) If an insurer of an out-of-state resident is required to

 

provide benefits under subsections (1) to (3) to that out-of-state

 

resident for accidental bodily injury for an accident in which the

 

out-of-state resident was not an occupant of a motor vehicle

 

registered in this state, the insurer is only liable for the amount

 

of ultimate loss sustained up to $500,000.00. Benefits under this

 

subsection 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.

 

     Sec. 3171. (1) Until an assigned claims plan is approved under

 

subsection (3), the secretary of state shall organize and maintain

 

an assigned claims facility and plan. A self-insurer and insurer

 

writing insurance as provided by this chapter in this state, or

 

that was writing insurance provided by this chapter on December 31,

 

2021, shall participate in the assigned claims plan. Costs incurred

 

in the operation of the facility and the plan shall must be

 

allocated fairly among insurers and self-insurers. The secretary of

state shall promulgate rules to implement the facility and plan in

 

accordance with and subject to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328. After an assigned claims

 

plan is approved under subsection (3), the secretary of state shall

 

continue to maintain the assigned claims facility and plan

 

organized under this subsection as required by the plan approved

 

under subsection (3).

 

     (2) The Michigan automobile insurance placement facility shall

 

adopt and maintain an assigned claims plan. A self-insurer or

 

insurer writing insurance as provided by this chapter in this state

 

shall participate in the assigned claims plan. Costs incurred in

 

the administration of the assigned claims plan shall must be

 

allocated fairly among insurers and self-insurers. On approval

 

under subsection (3), the Michigan automobile insurance placement

 

facility shall implement the assigned claims plan.

 

     (3) By August 1, 2012, the Michigan automobile insurance

 

placement facility board of governors shall adopt an assigned

 

claims plan by majority vote and shall submit it to the

 

commissioner director for his or her approval. The commissioner

 

director shall review the plan within 30 days and respond in

 

writing as provided in this subsection. If the commissioner

 

director finds that the plan meets the requirements of this

 

chapter, he or she shall approve it. If the commissioner director

 

finds that the plan fails to meet the requirements of this chapter,

 

he or she shall state in what respects the plan is deficient and

 

shall afford the Michigan automobile insurance placement facility

 

board of governors 10 days within which to correct the deficiency.

If the commissioner director and the Michigan automobile insurance

 

placement facility board of governors fail to agree that the plan

 

submitted, with any corrections, meets the requirements of this

 

chapter, either party to the controversy may submit the issue to

 

the circuit court for Ingham county County for a determination. If

 

the commissioner director fails to render a written decision on the

 

assigned claims plan within 30 days after receipt of the plan, the

 

plan shall be is considered approved. The Michigan automobile

 

insurance placement facility shall forward a plan approved under

 

this subsection to the secretary of state. The plan takes effect on

 

approval by the commissioner.director.

 

     (4) Amendments to the assigned claims plan approved under

 

subsection (3) shall must be adopted by the board of governors and

 

approved by the commissioner director as provided in subsection

 

(3). Until the date established in the plan under subsection

 

(5)(c), the board of governors shall give the secretary of state

 

advance notice of any proposed amendments to the plan.

 

     (5) The plan adopted under subsection (3) shall must include

 

all of the following:

 

     (a) The date on and after which all claims for benefits

 

through the assigned claims plan under section 3172 shall must be

 

filed with the Michigan automobile insurance placement facility.

 

     (b) The date by which existing claims that have been assigned

 

under the plan maintained by the secretary of state under

 

subsection (1) will be transferred to the Michigan automobile

 

insurance placement facility to be included in and administered

 

under the adopted plan.

     (c) A date by which all functions of the assigned claims plan

 

maintained by the secretary of state, with the exception of driver

 

license and vehicle sanctions, will be transferred to the Michigan

 

automobile insurance placement facility.

 

     (d) Requirements for the transfer of records relating to

 

assigned claims from the secretary of state to the Michigan

 

automobile insurance placement facility and the disposition by the

 

secretary of state of records relating to assigned claims.

 

     (e) Reimbursement of the secretary of state by the Michigan

 

automobile insurance placement facility for all of the following:

 

     (i) Expenses of developing the plan under subsection (6).

 

     (ii)Expenses of transferring operations from the assigned

 

claims facility to the Michigan automobile insurance placement

 

facility.

 

     (iii) Expenses incurred by the secretary of state after the

 

transfer of operations from the assigned claims facility to the

 

Michigan automobile insurance placement facility for operations

 

performed by the secretary of state on behalf of the Michigan

 

automobile insurance placement facility.

 

     (6) The secretary of state and the Michigan automobile

 

insurance placement facility shall cooperate and mutually develop

 

the aspects of the plan to be adopted under subsection (3) that are

 

required under subsection (5).

 

     (7) The secretary of state shall provide the Michigan

 

automobile insurance placement facility with all information

 

necessary for the operation of the assigned claims fund.

 

     (8) One year after the date established under subsection

(5)(c), the commissioner director shall report in writing to the

 

senate and house of representatives standing committees on

 

insurance issues on the cost of the transfer of the assigned claims

 

plan to the Michigan automobile insurance placement facility and

 

the effectiveness of operations under the new plan.

 

     (9) As used in this section:

 

     (a) "Michigan automobile insurance placement facility" means

 

the Michigan automobile insurance placement facility created under

 

chapter 33.

 

     (b) "Michigan automobile insurance placement facility board of

 

governors" means the board of governors created under section 3310.

 

     Sec. 3172. (1) A person entitled to claim because of

 

accidental bodily injury arising out of the ownership, operation,

 

maintenance, or use of a motor vehicle as a motor vehicle in this

 

state may obtain personal protection insurance benefits through the

 

assigned claims plan under 1 or more of the following

 

circumstances:

 

     (a) For accidental bodily injury that occurs before January 1,

 

2022, if no personal protection insurance is applicable to the

 

injury.

 

     (b) For accidental bodily injury that occurs before January 1,

 

2022, if no personal protection insurance applicable to the injury

 

can be identified.

 

     (c) For accidental bodily injury regardless of when it occurs,

 

if the personal protection insurance applicable to the injury

 

cannot be ascertained because of a dispute between 2 or more

 

automobile insurers concerning their obligation to provide coverage

or the equitable distribution of the loss. , or

 

     (d) For accidental bodily injury regardless of when it occurs,

 

if the only identifiable personal protection insurance applicable

 

to the injury is, because of financial inability of 1 or more

 

insurers to fulfill their obligations, inadequate to provide

 

benefits up to the maximum prescribed. In that case, If this

 

subdivision applies, unpaid benefits due or coming due may be

 

collected under the assigned claims plan and the insurer to which

 

the claim is assigned is entitled to reimbursement from the

 

defaulting insurers to the extent of their financial

 

responsibility.

 

     (2) Except as otherwise provided in this subsection, personal

 

protection insurance benefits, including benefits arising from

 

accidents occurring before March 29, 1985, payable through the

 

assigned claims plan shall must be reduced 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, to a person

 

claiming personal protection insurance benefits through the

 

assigned claims plan. This subsection only applies if the personal

 

protection insurance benefits are payable through the assigned

 

claims plan because no personal protection insurance is applicable

 

to the injury, no personal protection insurance applicable to the

 

injury can be identified, or the only identifiable personal

 

protection insurance applicable to the injury is, because of

 

financial inability of 1 or more insurers to fulfill their

 

obligations, inadequate to provide benefits up to the maximum

prescribed. As used in this subsection, "sources" and "benefit

 

sources" do not include the program for medical assistance for the

 

medically indigent under the social welfare act, 1939 PA 280, MCL

 

400.1 to 400.119b, or insurance under the health insurance for the

 

aged act, title subchapter XVIII of the social security act, 42 USC

 

1395 to 1395kkk-1.1395lll.

 

     (3) If the obligation to provide personal protection insurance

 

benefits cannot be ascertained because of a dispute between 2 or

 

more automobile insurers concerning their obligation to provide

 

coverage or the equitable distribution of the loss, and if a method

 

of voluntary payment of benefits cannot be agreed upon among or

 

between the disputing insurers, all of the following apply:

 

     (a) The insurers who are parties to the dispute shall, or the

 

claimant may, immediately notify the Michigan automobile insurance

 

placement facility of their inability to determine their statutory

 

obligations.

 

     (b) The claim shall must be assigned by the Michigan

 

automobile insurance placement facility to an insurer and the

 

insurer shall immediately provide personal protection insurance

 

benefits to the claimant or claimants entitled to benefits.

 

     (c) An action shall must be immediately commenced on behalf of

 

the Michigan automobile insurance placement facility by the insurer

 

to whom the claim is assigned in circuit court to declare the

 

rights and duties of any interested party.

 

     (d) The insurer to whom the claim is assigned shall join as

 

parties defendant to the action commenced under subdivision (c)

 

each insurer disputing either the obligation to provide personal

protection insurance benefits or the equitable distribution of the

 

loss among the insurers.

 

     (e) The circuit court shall declare the rights and duties of

 

any interested party whether or not other relief is sought or could

 

be granted.

 

     (f) After hearing the action, the circuit court shall

 

determine the insurer or insurers, if any, obligated to provide the

 

applicable personal protection insurance benefits and the equitable

 

distribution, if any, among the insurers obligated, and shall order

 

reimbursement to the Michigan automobile insurance placement

 

facility from the insurer or insurers to the extent of the

 

responsibility as determined by the court. The reimbursement

 

ordered under this subdivision shall must include all benefits and

 

costs paid or incurred by the Michigan automobile insurance

 

placement facility and all benefits and costs paid or incurred by

 

insurers determined not to be obligated to provide applicable

 

personal protection insurance benefits, including reasonable,

 

actually incurred attorney fees and interest at the rate prescribed

 

in section 3175 as of December 31 of the year preceding the

 

determination of the circuit court.

 

     Sec. 3179. (1) This act Subject to subsection (2), this

 

chapter applies to motor vehicle accidents occurring on or after

 

October 1, 1973.

 

     (2) Unless expressly provided otherwise in this chapter, this

 

chapter does not apply to a motor vehicle accident if loss

 

resulting from the accident is insured against under an automobile

 

insurance policy issued or renewed after December 31, 2021.

     Sec. 3303. As used in this chapter:

 

     (a) "Automobile insurance" means insurance for automobiles

 

which provides any of the following:

 

     (i) Security required pursuant to under section 3101.

 

     (ii) Personal protection, property protection, and residual

 

liability insurance for amounts in excess of the amounts required

 

under chapter 31.

 

     (iii) Automobile liability or motor vehicle liability

 

insurance that complies with section 3009.

 

     (iv) (iii) Insurance coverage customarily known as

 

comprehensive and collision.

 

     (v) (iv) Other insurance coverages for a private passenger

 

nonfleet automobile as prescribed by rule promulgated by the

 

commissioner.director.

 

     (b) "Qualified applicant", for automobile insurance, means a

 

person who is an owner or registrant of an automobile registered or

 

to be registered in this state or who holds a valid license to

 

operate a motor vehicle, but does not include any of the following:

 

     (i) A person who is not required to maintain security pursuant

 

to under section 3101 or maintain insurance that complies with

 

section 3009, unless the person intends to reside in this state for

 

30 days or more and makes a written statement of that intention on

 

a form approved by the commissioner.director.

 

     (ii) A person whose license to operate a vehicle is under

 

suspension or revocation, unless the suspension was made pursuant

 

to under section 310, 310b, 310d, 315, 321a, 324, 328, 512, 515,

 

625, 625b, 625f, 748, 801c, or 907 of Act No. 300 of the Public

Acts of 1949, as amended, being sections the Michigan vehicle code,

 

1949 PA 300, MCL 257.310, 257.310b, 257.310d, 257.315, 257.321a,

 

257.324, 257.328, 257.512, 257.515, 257.625, 257.625b, 257.625f,

 

257.748, 257.801c, and 257.907. of the Michigan Compiled Laws.

 

     (iii) A person whose policy of automobile insurance has been

 

cancelled because of nonpayment of premium or finance premium

 

within the immediately preceding 2-year period, unless the

 

applicant or insured pays in full a premium installment developed

 

under section 3350(a) before issuance, continuation, or renewal of

 

the policy.

 

     (c) "Facility" means the automobile insurance placement

 

facility created pursuant to under this chapter.

 

     (d) "Participating member" means an insurer who is required by

 

this chapter to be a member of the facility and who in any given a

 

calendar year has a participation ratio greater than zero in the

 

facility for that year.

 

     (e) "Participation ratio" means the ratio of the participating

 

member's Michigan premiums or exposure units to the comparable

 

statewide totals for all participating members, as follows:

 

     (i) For private passenger nonfleet automobile insurance, for

 

distribution of risk or distribution of loss, the ratio shall must

 

be based on voluntary net direct automobile insurance car years

 

written in this state for the calendar year ending December 31 of

 

the second prior year as reported to the statistical agent of each

 

participating member as private passenger nonfleet exposure.

 

     (ii) For all other automobile insurance, including insurance

 

for fleets, commercial vehicles, public vehicles, and garages, the

ratio for distribution of risks or distribution of loss shall must

 

be based on the total Michigan automobile insurance gross direct

 

premiums written, including policy and membership fees, less return

 

premiums and premiums on policies not taken, without including

 

reinsurance assumed and without deducting reinsurance ceded,

 

reduced by the amount of premiums reported as private passenger

 

nonfleet for the calendar year ending December 31 of the second

 

prior year.

 

     (iii) For expenses of operation of the facility and for voting

 

rights, the ratio shall must be based on the total Michigan

 

automobile insurance gross direct premiums written, including

 

policy and membership fees, less return premiums and premiums on

 

policies not taken, without including reinsurance assumed and

 

without deducting reinsurance ceded for the calendar year ending

 

December 31 of the second prior year.

 

     (f) "Private passenger nonfleet automobile" means a motorized

 

vehicle designed for transporting passengers or goods, subject to

 

specific contemporary definitions for insurance purposes as

 

provided in the plan of operation.

 

     Sec. 6107. (1) Before April 1 of each year, each an insurer

 

engaged in writing insurance coverages that provide the security

 

required by section 3101(1) or insurance policies that comply with

 

section 3009 in this state, as a condition of its authority to

 

transact insurance in this state, shall pay to the authority an

 

assessment equal to $1.00 multiplied by the insurer's total written

 

car years of insurance providing that provide the security required

 

by section 3101(1) or under insurance policies that comply with

section 3009 written in this state during the preceding year.

 

     (2) The authority shall segregate and deposit money received

 

under subsection (1), and all other money received by the

 

authority, in a fund to be known as the automobile theft prevention

 

fund. The authority shall administer the automobile theft

 

prevention fund.

 

     (3) The authority shall expend money in the automobile theft

 

prevention fund in the following order of priority:

 

     (a) To pay the costs of administration of the authority.

 

     (b) To achieve the purposes and objectives of this chapter,

 

which may include, but not be limited to, the following:

 

     (i) Providing financial support to the department of state

 

police and local law enforcement agencies for economic automobile

 

theft enforcement teams.

 

     (ii) Providing financial support to state or local law

 

enforcement agencies for programs designed to reduce the incidence

 

of economic automobile theft.

 

     (iii) Providing financial support to local prosecutors for

 

programs designed to reduce the incidence of economic automobile

 

theft.

 

     (iv) Providing financial support to judicial agencies for

 

programs designed to reduce the incidence of economic automobile

 

theft.

 

     (v) Providing financial support for neighborhood or community

 

organizations or business organizations for programs designed to

 

reduce the incidence of automobile theft.

 

     (vi) Conducting educational programs designed to inform

automobile owners of methods of preventing automobile theft and to

 

provide equipment, for experimental purposes, to enable automobile

 

owners to prevent automobile theft.

 

     (4) Money in the automobile theft prevention fund must only be

 

used for automobile theft prevention efforts and must be

 

distributed based on need and efficacy as determined by the

 

authority.

 

     (5) Money in the automobile theft prevention fund is not state

 

money.

 

     (6) As used in this section, "written car year" means the

 

portion of a year during which a vehicle is insured as determined

 

by the catastrophic claims association and used to calculate

 

premium charges under section 3104.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 100th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. ____ or House Bill No. 4398 (request no.

 

00650'19 a).

 

     (b) Senate Bill No. ____ or House Bill No. 4399 (request no.

 

00650'19 b).

 

     (c) Senate Bill No. ____ or House Bill No. 4400 (request no.

 

00650'19 c).

 

     (d) Senate Bill No. ____ or House Bill No. 4401 (request no.

 

00650'19 d).

 

     (e) Senate Bill No. ____ or House Bill No. 4402 (request no.

 

00650'19 e).

 

     (f) Senate Bill No. ____ or House Bill No. 4403 (request no.

00650'19 f).