Bill Text: MI HB4397 | 2019-2020 | 100th Legislature | Engrossed
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-Engrossed.html
HB-4397, As Passed Senate, June 4, 2019
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4397
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 3009, 3109a, 3111, 3116, 3135, and 3151 (MCL
500.3009, 500.3109a, 500.3111, 500.3116, 500.3135, and 500.3151),
section 3009 as amended by 2016 PA 346, section 3109a as amended by
2012 PA 454, and section 3135 as amended by 2012 PA 158, and by
adding sections 2111f, 3107c, and 3107d.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2111f. (1) Before July 1, 2020, an insurer that offers
automobile insurance in this state shall file premium rates for
personal protection insurance coverage for automobile insurance
policies effective after July 1, 2020.
(2) Subject to subsections (6) and (7), the premium rates
filed as required by subsection (1), and any subsequent premium
rates filed by the insurer for personal protection insurance
coverage under automobile insurance policies effective before July
2, 2028, must result, as nearly as practicable, in an average
reduction per vehicle from the premium rates for personal
protection insurance coverage that were in effect for the insurer
on May 1, 2019 as follows:
(a) For policies subject to the coverage limits under section
3107c(1)(a), an average 45% or greater reduction per vehicle.
(b) For policies subject to the coverage limits under section
3107c(1)(b), an average 35% or greater reduction per vehicle.
(c) For policies subject to the coverage limits under section
3107c(1)(c), an average 20% or greater reduction per vehicle.
(d) For policies not subject to any coverage limit under
section 3107c(1)(d), an average 10% or greater reduction per
vehicle.
(3) For a policy under which an election under section 3107d
has been made to not maintain coverage for personal protection
insurance benefits payable under section 3107(1)(a), or for a
policy to which an exclusion under section 3109a(2) applies, the
premium rates filed under subsection (1), and any subsequent
premium rates filed by the insurer for personal protection
insurance coverage, must result in no premium charge for coverage
for personal protection insurance benefits payable under section
3107(1)(a).
(4) The director shall review a filing submitted by an insurer
under subsections (1) to (3) for compliance with this section.
Subject to subsection (7), the director shall disapprove a filing
if after review the director determines that the filing does not
result in the premium reductions required by subsections (2) and
(3).
(5) If the director disapproves a premium rate filing under
subsection (4), the insurer shall submit a revised premium rate
filing to the director within 15 days after the disapproval. The
premium rate filing is subject to review in the same manner as an
original premium rate filing under subsection (4).
(6) For policies issued or renewed in the year beginning July
1, 2024 and in the year beginning July 1, 2026, an automobile
insurer that offers automobile insurance in this state shall make
filings demonstrating its compliance with this section.
(7) At any time, an insurer may apply to the director for
approval to file rates that result in a lower premium reduction
level or an exemption from the requirements of subsection (2) and
the director shall approve the application if the rates otherwise
comply with this act and compliance with the premium reductions
required by subsection (2) will result in any of the following:
(a) The insurer reaching the company action level risk-based
capital.
(b) A violation of the Fourteenth Amendment of the United
States Constitution as to the insurer. This subdivision does not
apply after July 1, 2023.
(c) A violation of section 17 of article I of the state
constitution of 1963, as to deprivation of property without due
process. This subdivision does not apply after July 1, 2023.
(8) An insurer shall pass on, in filings to which this section
applies, savings realized from the application of section 3157(2)
to (12) to treatment, products, services, accommodations, or
training rendered to individuals who suffered accidental bodily
injury from motor vehicle accidents that occurred before July 2,
2021. An insurer shall provide the director with all documents and
information requested by the director that the director determines
are necessary to allow the director to evaluate the insurer's
compliance with this subsection. After July 1, 2022, the director
shall review all rate filings to which this section applies for
compliance with this subsection.
(9) This section does not prohibit an increase for any
individual insurance policy premium if the increase results from
applying rating factors as approved under this chapter, including
the requirements of this section.
(10) After July 1, 2020 and before July 2, 2028, an insurer
shall not issue or renew an automobile insurance policy in this
state unless the premium rates filed by the insurer for personal
protection insurance coverage are approved under this section.
(11) For purposes of calculating a personal protection
insurance premium or premium rate under this section, the premium
must include the catastrophic claims assessment imposed under
section 3104.
(12) If subsection (2) or the application of subsection (2) to
any insurer is found to be invalid by a court, the remaining
portions of the amendatory act that added this section are not
severable and shall be deemed invalid and inoperable.
(13) As used in this section:
(a) "Authorized control level RBC" means the number determined
under the risk-based capital formula in accordance with the RBC
report, including risk-based capital instructions adopted by the
National Association of Insurance Commissioners and the director.
(b) "Company action level risk-based capital" means 2 times
the insurer's authorized control level RBC.
(c) "RBC report" means the report of the insurer's RBC levels
as required by the annual statement instructions.
Sec.
3009. (1) An Subject to
subsections (5) to (8), an
automobile
liability or motor vehicle liability policy insuring
that insures 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 must 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 Before July 2, 2020, 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, and after July 1, 2020, a
limit, exclusive of interest and costs, of not less than
$250,000.00 because of bodily injury to or death of 1 person in any
1 accident.
(b)
Subject Before July 2,
2020 and 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, and after July 1, 2020, and subject to the limit for 1
person in subdivision (a), a limit of not less than $500,000.00
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) If an insurer deletes coverages from an automobile
insurance
policy pursuant to under section 3101, the insurer shall
send documentary evidence of the deletion to the insured.
(5) After July 1, 2020, an applicant for or named insured in
the automobile liability or motor vehicle liability policy
described in subsection (1) may choose to purchase lower limits
than required under subsection (1)(a) and (b), but not lower than
$50,000.00 under subsection (1)(a) and $100,000.00 under subsection
(1)(b). To exercise an option under this subsection, the person
shall complete a form issued by the director and provided as
required by section 3107e, that meets the requirements of
subsection (7).
(6) After July 1, 2020, on application for the issuance of a
new policy or renewal of an existing policy, an insurer shall do
all of the following:
(a) Provide the applicant or named insured the liability
options available under this section.
(b) Provide the applicant or named insured a price for each
option available under this section.
(c) Offer the applicant or named insured the option and form
under this subsection.
(7) The form required under subsection (5) must do all of the
following:
(a) State, in a conspicuous manner, the risks of choosing
liability limits lower than those required by subsection (1)(a) and
(b).
(b) Provide a way for the person to mark the form to
acknowledge that he or she has received a list of the liability
options available under this section and the price for each option.
(c) Provide a way for the person to mark the form to
acknowledge that he or she has read the form and understands the
risks of choosing the lower liability limits.
(d) Allow the person to sign the form.
(8) After July 1, 2020, if an insurance policy is issued or
renewed as described in subsection (1) and the person named in the
policy has not made an effective choice under subsection (5), the
limits under subsection (1)(a) and (b) apply to the policy.
Sec. 3107c. (1) Except as provided in sections 3107d and
3109a, and subject to subsection (5), for an insurance policy that
provides the security required under section 3101(1) and is issued
or renewed after July 1, 2020, the applicant or named insured
shall, in a way required under section 3107e and on a form approved
by the director, select 1 of the following coverage levels for
personal protection insurance benefits under section 3107(1)(a):
(a) A limit of $50,000.00 per individual per loss occurrence
for any personal protection insurance benefits under section
3107(1)(a). The selection of a limit under this subdivision is only
available to an applicant or named insured if both of the following
apply:
(i) The applicant or named insured is enrolled in Medicaid, as
that term is defined in section 3157.
(ii) The applicant's or named insured's spouse and any
relative of either who resides in the same household has qualified
health coverage, as that term is defined in section 3107d, is
enrolled in Medicaid, or has coverage for the payment of benefits
under section 3107(1)(a) from an insurer that provides the security
required by section 3101(1).
(b) A limit of $250,000.00 per individual per loss occurrence
for any personal protection insurance benefits under section
3107(1)(a).
(c) A limit of $500,000.00 per individual per loss occurrence
for any personal protection insurance benefits under section
3107(1)(a).
(d) No limit for personal protection insurance benefits under
section 3107(1)(a).
(2) The form required under subsection (1) must do all of the
following:
(a) State, in a conspicuous manner, the benefits and risks
associated with each coverage option.
(b) Provide a way for the applicant or named insured to mark
the form to acknowledge that he or she has read the form and
understands the options available.
(c) Allow the applicant or named insured to mark the form to
make the selection of coverage level under subsection (1).
(d) Require the applicant or named insured to sign the form.
(3) If an insurance policy is issued or renewed as described
in subsection (1) and the applicant or named insured has not made
an effective selection under subsection (1) but a premium or
premium installment has been paid, there is a rebuttable
presumption that the amount of the premium or installment paid
accurately reflects the level of coverage applicable to the policy
under subsection (1).
(4) If an insurance policy is issued or renewed as described
in subsection (1), the applicant or named insured has not made an
effective selection under subsection (1), and a presumption under
subsection (3) does not apply, subsection (1)(d) applies to the
policy.
(5) The coverage level selected under subsection (1) applies
to the named insured, the named insured's spouse, and a relative of
either domiciled in the same household, and any other person with a
right to claim personal protection insurance benefits under the
policy.
(6) If benefits are payable under section 3107(1)(a) under 2
or more insurance policies, the benefits are only payable up to an
aggregate coverage limit that equals the highest available coverage
limit under any 1 of the policies.
(7) This section applies for a transportation network company
vehicle, but an applicant or named insured that is a transportation
network company shall only select limits under either subsection
(1)(b), (c), or (d). As used in this subsection:
(a) "Transportation network company" means that term as
defined in section 2 of the limousine, taxicab, and transportation
network company act, 2016 PA 345, MCL 257.2102.
(b) "Transportation network company vehicle" means that term
as defined in section 3114.
(8) An insurer shall offer, for a policy that provides the
security required under section 3101(1) to which a limit under
subsection (1)(a) to (c) applies, a rider that will provide
coverage for attendant care in excess of the applicable limit.
Sec. 3107d. (1) For an insurance policy that provides the
security required under section 3101(1) and is issued or renewed
after July 1, 2020, the applicant or named insured may, in a way
required under section 3107e and on a form approved by the
director, elect to not maintain coverage for personal protection
insurance benefits payable under section 3107(1)(a) if the
applicant or named insured is a qualified person, and if the
applicant's or named insured's spouse and any relative of either
that resides in the same household have qualified health coverage
or have coverage for benefits payable under section 3107(1)(a) from
an insurer that provides the security required by section 3101(1).
(2) An applicant or named insured shall, when requesting
issuance or renewal of a policy under subsection (1), provide to
the insurer a document from the person that provides the qualified
health coverage stating the names of all persons covered under the
qualified health coverage.
(3) The form required under subsection (1) must do all of the
following:
(a) Require the applicant or named insured to mark the form to
certify whether all persons required to be qualified persons under
subsection (1) are qualified persons.
(b) Disclose in a conspicuous manner that qualified persons
are not obligated to but may purchase coverage for personal
protection insurance coverage benefits payable under section
3107(1)(a).
(c) State, in a conspicuous manner, the coverage levels
available under section 3107c.
(d) State, in a conspicuous manner, the benefits and risks
associated with not maintaining the coverage.
(e) State, in a conspicuous manner, that if during the term of
the policy the qualified health coverage ceases, the person has 30
days after the effective date of the termination of qualified
health coverage to obtain insurance that provides coverage under
section 3107(1)(a) or the person will be excluded from all personal
protection insurance coverage benefits under section 3107(1)(a)
during the period in which coverage under this section was not
maintained.
(f) Provide a way for the applicant or named insured to mark
the form to acknowledge that he or she has read the form and
understands it and that he or she understands the options available
to him or her.
(g) If all persons required to be qualified persons under
subsection (1) are qualified persons, provide the person a way to
mark the form to elect to not maintain the coverage.
(h) Require the applicant or named insured to sign the form.
(4) If an insurance policy is issued or renewed as described
in subsection (1) and the applicant or named insured has not made
an effective election under subsection (1), the policy is
considered to provide personal protection benefits under section
3107c(1)(d).
(5) An election under this section applies to the applicant or
named insured, the applicant or named insured's spouse, a relative
of either domiciled in the same household, and any other person who
would have had a right to claim personal protection insurance
benefits under the policy but for the election.
(6) If, during the term of an insurance policy under which
coverage for personal protection insurance benefits payable under
section 3107(1)(a) are not maintained under this section, the
persons required to have qualified health coverage under subsection
(1) cease to have qualified health coverage, all of the following
apply under this subsection:
(a) Within 30 days after the effective date of the termination
of qualified health coverage, the named insured shall obtain
insurance that includes coverage under section 3107(1)(a).
(b) An insurer that issues policies that provide the security
required by section 3101(1) shall not refuse to prospectively
insure, limit coverage available to, charge a reinstatement fee to,
or increase the insurance premiums for a person who is an eligible
person, as that term is defined in section 2103, solely because the
person previously failed to obtain insurance that provides coverage
for benefits under section 3107(1)(a) in the time required under
subdivision (a).
(c) If the applicant or named insured does not obtain
insurance as required under subdivision (a) and a person to whom
the election under this section applies as described in subsection
(5) suffers accidental bodily injury arising from a motor vehicle
accident within the 30-day period, unless the injured person is
entitled to coverage under some other policy, the injured person is
not entitled to be paid personal protection insurance benefits
under section 3107(1)(a) for the injury but is entitled to claim
benefits under the assigned claims plan.
(7) As used in this section:
(a) "Consumer Price Index" means the most comprehensive index
of consumer prices available for this state from the United States
Department of Labor, Bureau of Labor Statistics.
(b) "Qualified health coverage" means either of the following:
(i) Other health or accident coverage to which both of the
following apply:
(A) The coverage does not exclude or limit coverage for
injuries related to motor vehicle accidents.
(B) Any annual deductible for the coverage is $6,000.00 or
less per individual. The director shall adjust the amount in this
sub-subparagraph on July 1 of each year by the percentage change in
the medical component of the Consumer Price Index for the preceding
calendar year. However, the director shall not make the adjustment
unless the adjustment, or the total of the adjustment and previous
unadded adjustments, is $500.00 or more.
(ii) Coverage under parts A and B of the federal Medicare
program established under subchapter XVIII of the social security
act, 42 USC 1395 to 1395lll.
(c) "Qualified person" means a person who has qualified health
coverage under subdivision (b)(ii).
Sec.
3109a. (1) An insurer providing that provides personal
protection
insurance benefits under this chapter may offer , at
appropriately
reduced premium rates, deductibles
and exclusions
reasonably related to other health and accident coverage on the
insured. Any deductibles and exclusions offered under this section
must be offered at a reduced premium that reflects reasonably
anticipated reductions in losses, expenses, or both, are subject to
prior
approval by the commissioner director,
and 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.
(2) For an insurance policy issued or renewed after July 1,
2020, the insurer shall offer to an applicant or named insured that
selects a personal protection benefit limit under section
3107c(1)(b) an exclusion related to qualified health coverage. All
of the following apply to that exclusion:
(a) If the named insured has qualified health coverage as
defined in section 3107d(7)(b)(i) that will cover injuries that
occur as the result of a motor vehicle accident and if the named
insured's spouse and any relatives of either the named insured or
the spouse domiciled in the same household have qualified health
coverage that will cover injuries that occur as the result of a
motor vehicle accident, the premium for the personal protection
insurance benefits payable under section 3107(1)(a) under the
policy must be reduced by 100%.
(b) If a member, but not all members, of the household covered
by the insurance policy has qualified health coverage that will
cover injuries that occur as the result of a motor vehicle
accident, the insurer shall offer a reduced premium that reflects
reasonably anticipated reductions in losses, expenses, or both. The
reduction must be in addition to the rate rollback required by
section 2111f and the share of the premium reduction for the policy
attributable to any person with qualified health coverage must be
100%.
(c) Subject to subdivision (d), a person subject to an
exclusion under this subsection is not eligible for personal
protection benefits under the insurance policy.
(d) If a person subject to an exclusion under this subsection
is no longer covered by the qualified health coverage, the named
insured shall notify the insurer that the named insured or resident
relative is no longer eligible for an exclusion. All of the
following apply under this subdivision:
(i) The named insured shall, within 30 days after the
effective date of the termination of the qualified health coverage,
obtain insurance that provides the security required under section
3101(1) that includes coverage that was excluded under this
subsection.
(ii) During the period described in subparagraph (i), if any
person excluded suffers accidental bodily injury arising from a
motor vehicle accident, the person is entitled to claim benefits
under the assigned claims plan.
(e) If the named insured does not obtain insurance that
provides the security required under section 3101(1) that includes
the coverage excluded under this subsection during the period
described in subdivision (d)(i) and the named insured or any person
excluded under the policy suffers accidental bodily injury arising
from a motor vehicle accident, unless the injured person is
entitled to coverage under some other policy, the injured person is
not entitled to be paid personal protection insurance benefits
under section 3107(1)(a) for the injury that occurred during the
period in which coverage under this section was excluded.
(3) An automobile insurer shall not refuse to prospectively
insure, limit coverage available to, charge a reinstatement fee
for, or increase the premiums for automobile insurance for an
eligible person, as that term is defined in section 2103, solely
because the person previously failed to obtain insurance that
provides the security required under section 3101(1) in the time
period provided under subsection (2)(d)(i).
(4) The amount of a premium reduction under subsection (1)
must appear in a conspicuous manner in the declarations for the
policy, and be expressed as a dollar amount or a percentage.
(5) As used in this section, "qualified health coverage" means
that term as defined in section 3107d.
Sec. 3111. Personal protection insurance benefits are payable
for accidental bodily injury suffered in an accident occurring out
of this state, if the accident occurs within the United States, its
territories
and possessions, or in Canada, and the person whose
injury is the basis of the claim was at the time of the accident a
named
insured under a personal protection insurance policy, his the
spouse of a named insured, a relative of either domiciled in the
same household, or an occupant of a vehicle involved in the
accident, whose
if the occupant was a
resident of this state or if
the owner or registrant of the vehicle was insured under a personal
protection
insurance policy or has provided security approved by
the
secretary of state under subsection (4) of section
3101.3101(5).
Sec. 3116. (1) A subtraction from personal protection
insurance
benefits shall must not be made because of the value of a
claim in tort based on the same accidental bodily injury.
(2) A subtraction from or reimbursement for personal
protection insurance benefits paid or payable under this chapter
shall
may be made only if recovery is realized upon on a
tort claim
arising
from an accident occurring that
occurred outside this
state,
a tort claim brought within in
this state against the owner
or operator of a motor vehicle with respect to which the security
required
by section 3101 (3) and (4) was not in effect, or a tort
claim
brought within in this state based on intentionally caused
harm
to persons or property, and shall may be made only to the
extent that the recovery realized by the claimant is for damages
for which the claimant has received or would otherwise be entitled
to receive personal protection insurance benefits. A subtraction
shall
may be made only to the extent of the recovery,
exclusive of
reasonable
attorneys' attorney fees and other reasonable expenses
incurred in effecting the recovery. If personal protection
insurance benefits have already been received, the claimant shall
repay
to the insurers out of the recovery a sum an amount equal to
the benefits received, but not more than the recovery exclusive of
reasonable
attorneys' attorney fees and other reasonable expenses
incurred
in effecting the recovery. The insurer shall have has a
lien on the recovery to this extent. A recovery by an injured
person
or his or her estate for loss suffered by the person shall
may not be subtracted in calculating benefits due a dependent after
the death and a recovery by a dependent for loss suffered by the
dependent
after the death shall may not be subtracted in
calculating benefits due the injured person.
(3) A personal protection insurer with a right of
reimbursement under subsection (1), if suffering loss from
inability to collect reimbursement out of a payment received by a
claimant
upon on a tort claim, is entitled to indemnity from a
person who, with notice of the insurer's interest, made the payment
to the claimant without making the claimant and the insurer joint
payees as their interests may appear or without obtaining the
insurer's consent to a different method of payment.
(4)
A subtraction or reimbursement shall is not be due the
claimant's insurer from that portion of any recovery to the extent
that recovery is realized for noneconomic loss as provided in
section 3135(1) and (2)(b) or for allowable expenses, work loss,
and survivor's loss as defined in sections 3107 to 3110 in excess
of the amount recovered by the claimant from his or her insurer.
Sec. 3135. (1) A person remains subject to tort liability for
noneconomic loss caused by his or her ownership, maintenance, or
use of a motor vehicle only if the injured person has suffered
death, serious impairment of body function, or permanent serious
disfigurement.
(2)
For a cause of action for damages pursuant to under
subsection
(1) filed on or after July 26, 1996, or (3)(d), 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 3101(1)
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 3101(1) was in effect is abolished except as to:
(a) Intentionally caused harm to persons or property. Even
though a person knows that harm to persons or property is
substantially certain to be caused by his or her act or omission,
the person does not cause or suffer that harm intentionally if he
or she acts or refrains from acting for the purpose of averting
injury to any person, including himself or herself, or for the
purpose of averting damage to tangible property.
(b) Damages for noneconomic loss as provided and limited in
subsections (1) and (2).
(c) Damages for allowable expenses, work loss, and survivor's
loss as defined in sections 3107 to 3110, including all future
allowable expenses and work loss, in excess of any applicable limit
under section 3107c or the daily, monthly, and 3-year limitations
contained in those sections, or without limit for allowable
expenses if an election to not maintain that coverage was made
under section 3107d or if an exclusion under section 3109a(2)
applies. 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.However, to recover under this subdivision,
the
nonresident must have suffered death, serious impairment of body
function, or permanent serious disfigurement.
(e) Damages up to $1,000.00 to a motor vehicle or, for motor
vehicle accidents that occur after July 1, 2020, up to $3,000.00 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 3101.3101(1).
(5) As used in this section, "serious impairment of body
function" means an impairment that satisfies all of the following
requirements:
(a) It is objectively manifested, meaning it is observable or
perceivable from actual symptoms or conditions by someone other
than the injured person.
(b)
It is an impairment of an important
body function, that
which is a body function of great value, significance, or
consequence to the injured person.
(c) It affects the injured person's general ability to lead
his or her normal life, meaning it has had an influence on some of
the person's capacity to live in his or her normal manner of
living. Although temporal considerations may be relevant, there is
no temporal requirement for how long an impairment must last. This
examination is inherently fact and circumstance specific to each
injured person, must be conducted on a case-by-case basis, and
requires comparison of the injured person's life before and after
the incident.
Sec.
3151. (1) When If
the mental or physical condition of a
person is material to a claim that has been or may be made for past
or future personal protection insurance benefits, at the request of
an insurer the person shall submit to mental or physical
examination by physicians. A personal protection insurer may
include reasonable provisions that are in accord with this section
in a personal protection insurance policy for mental and physical
examination of persons claiming personal protection insurance
benefits.
(2) A physician who conducts a mental or physical examination
under this section must be licensed as a physician in this state or
another state and meet the following criteria, as applicable:
(a) If care is being provided to the person to be examined by
a specialist, the examining physician must specialize in the same
specialty as the physician providing the care, and if the physician
providing the care is board certified in the specialty, the
examining physician must be board certified in that specialty.
(b) During the year immediately preceding the examination, the
examining physician must have devoted a majority of his or her
professional time to either or both of the following:
(i) The active clinical practice of medicine and, if
subdivision (a) applies, the active clinical practice relevant to
the specialty.
(ii) The instruction of students in an accredited medical
school or in an accredited residency or clinical research program
for physicians and, if subdivision (a) applies, the instruction of
students is in the specialty.
Enacting section 1. Section 3135 of the insurance code of
1956, 1956 PA 218, MCL 500.3135, as amended by this amendatory act,
is intended to codify and give full effect to the opinion of the
Michigan supreme court in McCormick v Carrier, 487 Mich 180 (2010).
