April 23, 2013, Introduced by Reps. Lund, Lyons, LaFontaine, Denby, McBroom and Goike and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending the title and sections 102, 3101, 3104, 3107, 3114,
3135, 3148, 3157, 3163, 3172, 3301, 3330, 4501, and 6107 (MCL
500.102, 500.3101, 500.3104, 500.3107, 500.3114, 500.3135,
500.3148, 500.3157, 500.3163, 500.3172, 500.3301, 500.3330,
500.4501, and 500.6107), the title as amended by 2002 PA 304,
section 102 as amended by 2000 PA 252, section 3101 as amended by
2008 PA 241, section 3104 as amended by 2002 PA 662, section 3107
as amended by 2012 PA 542, section 3114 as amended by 2002 PA 38,
section 3135 as amended by 2012 PA 158, section 3163 as amended by
2002 PA 697, sections 3172 and 3330 as amended by 2012 PA 204,
section 4501 as amended by 2012 PA 39, and section 6107 as added by
1992 PA 174, and by adding sections 3104a, 3107c, and 3181 and
chapter 63.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to revise, consolidate, and classify the laws relating
to the insurance and surety business; to regulate the incorporation
or formation of domestic insurance and surety companies and
associations and other corporations to provide benefits under this
act and the admission of foreign and alien companies and
associations; to provide their rights, powers, and immunities and
to prescribe the conditions on which companies and associations
organized, existing, or authorized under this act may exercise
their powers; to provide the rights, powers, and immunities and to
prescribe the conditions on which other persons, firms,
corporations, associations, risk retention groups, and purchasing
groups engaged in an insurance or surety business may exercise
their powers; to provide for the imposition of a privilege fee on
domestic
insurance companies and associations; and the state
accident
fund; to provide for the imposition
of a tax on the
business of foreign and alien companies and associations; to
provide for the imposition of a tax on risk retention groups and
purchasing groups; to provide for the imposition of a tax on the
business of surplus line agents; to provide for the imposition of
regulatory fees on certain insurers; to provide for assessment fees
on certain health maintenance organizations; to modify tort
liability arising out of certain accidents; to provide for limited
actions with respect to that modified tort liability and to
prescribe certain procedures for maintaining those actions; to
require security for losses arising out of certain accidents; to
provide for the continued availability and affordability of
automobile insurance and homeowners insurance in this state and to
facilitate the purchase of that insurance by all residents of this
state at fair and reasonable rates; to provide for certain
reporting with respect to insurance and with respect to certain
claims against uninsured or self-insured persons; to prescribe
duties for certain state departments and officers with respect to
that reporting; to provide for certain assessments and fees; to
establish
and continue certain state insurance funds; to modify and
clarify
the status, rights, powers, duties, and operations of the
nonprofit
malpractice insurance fund; to
provide for the
departmental supervision and regulation of the insurance and surety
business
within this state; to provide for regulation over of
worker's compensation self-insurers; to provide for the
conservation, rehabilitation, or liquidation of unsound or
insolvent insurers; to provide for the protection of policyholders,
claimants, and creditors of unsound or insolvent insurers; to
provide for associations of insurers to protect policyholders and
claimants in the event of insurer insolvencies; to prescribe
educational requirements for insurance agents and solicitors; to
provide for the regulation of multiple employer welfare
arrangements;
to create an automobile theft prevention authority 1
or more authorities to reduce insurance fraud and the number of
automobile
thefts in this state ; and
to prescribe the powers and
duties
of the automobile theft prevention authority; authorities;
to
provide certain for the powers and duties upon of certain
officials, departments, and authorities of this state; to provide
for an appropriation; to repeal acts and parts of acts; and to
provide penalties for the violation of this act.
Sec. 102. As used in this act:
(a)
(1) "Commissioner" as used in this act means
the
commissioner
of the office of financial and insurance
services.director.
(b) (2)
"Department" as used
in this act means the office
department
of insurance and financial and
insurance services.
(c) "Director" means the director of the department.
Sec. 3101. (1) 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 , as
required under section 3107, property protection insurance, and
residual liability insurance as required under section 3009.
Security shall only be required to be in effect during the period
the motor vehicle is driven or moved upon 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 upon 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.
(2) As used in this chapter:
(a) "Automobile insurance" means that term as defined in
section 2102.
(b) "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, as reported by the United States
department of labor, bureau of labor statistics, and as certified
by the director.
(c) (b)
"Highway" means that term
as defined in section 20 of
the Michigan vehicle code, 1949 PA 300, MCL 257.20.
(d) (c)
"Motorcycle" means a
vehicle having 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, which and is
equipped
with a motor that exceeds 50 cubic centimeters piston displacement.
The wheels on any attachment to the vehicle shall not be considered
as wheels in contact with the ground. Motorcycle does not include a
moped, as defined in section 32b of the Michigan vehicle code, 1949
PA 300, MCL 257.32b. Motorcycle does not include an ORV.
(e) (d)
"Motorcycle accident"
means a loss involving the
ownership, operation, maintenance, or use of a motorcycle as a
motorcycle, but not involving the ownership, operation,
maintenance, or use of a motor vehicle as a motor vehicle.
(f) (e)
"Motor vehicle" means a
vehicle, including a trailer,
operated or designed for operation upon a public highway by power
other
than muscular power which that
has more than 2 wheels. Motor
vehicle does not include a motorcycle or a moped, as defined in
section 32b of the Michigan vehicle code, 1949 PA 300, MCL 257.32b.
Motor vehicle does not include a farm tractor or other implement of
husbandry
which that is not subject to the registration
requirements of the Michigan vehicle code pursuant to section 216
of the Michigan vehicle code, 1949 PA 300, MCL 257.216. Motor
vehicle does not include an ORV.
(g) (f)
"Motor vehicle accident"
means a loss involving 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.
(h) (g)
"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 upon a public highway and
has
the security described in section 3101 required under
subsection (1) or section 3103 in effect.
(i) (h)
"Owner" means any of the
following:
(i) A person renting a motor vehicle or having the use
thereof,
of a motor vehicle, under a lease or otherwise, for a period that
is greater than 30 days.
(ii) A person who holds the legal title to a vehicle, other
than a person engaged in the business of leasing motor vehicles who
is the lessor of a motor vehicle pursuant to a lease providing for
the use of the motor vehicle by the lessee for a period that is
greater than 30 days.
(iii) A person who has the immediate right of possession of a
motor vehicle under an installment sale contract.
(j) (i)
"Registrant" does not
include a person engaged in the
business of leasing motor vehicles who is the lessor of a motor
vehicle pursuant to a lease providing for the use of the motor
vehicle by the lessee for a period that is greater than 30 days.
(3) Security required by subsection (1) may be provided under
a policy issued by an insurer duly authorized to transact business
in
this state which 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 upon 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 any person filing the security as provided in this
section.
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 this state, 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 until
the affairs of the association are wound up under subsection (23).
Each insurer engaged in writing insurance coverages that provide
the security required by section 3103(1) within this state, as a
condition of its authority to transact insurance in this state,
shall be considered a member of the association until the affairs
of the association are wound up under subsection (23), but only for
purposes of premiums under subsection (7)(d). Except as expressly
provided in this section, the association is not subject to any
laws of this state with respect to insurers, but in all other
respects the association is subject to the laws of this state to
the extent that the association would be if it were an insurer
organized and subsisting under chapter 50.
(2)
The For loss occurrences
for which the association has
liability under subsection (22), 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 the date on which the association
has paid its final liability as described in subsection (23),
$530,000.00.
(3) An insurer may withdraw from the association only upon
ceasing to write insurance that provides the security required by
section 3101(1) in this state.
(4) An insurer whose membership in the association has been
terminated by withdrawal shall continue to be bound by the plan of
operation, and upon 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
include an amount to cover incurred but not reported losses for the
period and may be adjusted, subject to subsection (24), 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 be charged
an amount equal to that member's total written car years of
insurance providing the security required by section 3101(1) or
3103(1), or both, written in this state during the period to which
the premium applies, multiplied by the average premium per car. The
average premium per car shall be the total premium calculated
divided by the total written car years of insurance providing the
security required by section 3101(1) or 3103(1) written in this
state of all members during the period to which the premium
applies. A member shall 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.
(h) Provide services to a corporation formed under section
3104a as required by law or requested by the corporation.
(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 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 or without 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 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 board shall include members that would contribute a
total of not less than 40% of the total premium calculated pursuant
to
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 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 consist of 5 directors, and the
commissioner
director of the department shall be an ex officio
member of the board without vote.
(14)
Each director shall be appointed by the commissioner
director of the department and shall serve until that member's
successor is selected and qualified. The chairperson of the board
shall be elected by the board. A vacancy on the board shall be
filled
by the commissioner director
of the department consistent
with 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 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 An insurer authorized to write
insurance providing the security required by section 3101(1) in
this state, as provided in this section, is bound by and shall
formally
subscribe to and participate in the plan approved of
operation as a condition of maintaining its authority to transact
insurance in this state.
(19) (21)
The association is subject to all
the reporting,
loss
reserve, and investment requirements of the commissioner
director
of the department to the same extent as
would a member are
the members of the association.
(20) (22)
Premiums charged members by the
association shall 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 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 losses under motor vehicle
accident policies issued or renewed after December 31, 2013.
(23) The association shall continue in existence until all
liabilities due to loss occurrences for which it has liability
under subsection (22) are paid. On payment of the final liability,
the association shall notify the director of the department and
shall wind up the affairs of the association and transmit any
remaining money held by the association to a corporation formed
under section 3104a.
(24) Within 90 days after the effective date of the amendatory
act that added this subsection, the association shall adjust the
premium charge to members under subsection (7)(d) by an amount
sufficient to reflect changes made to this act by the amendatory
act that added this subsection.
(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. 3104a. (1) Within 60 days after the effective date of the
amendatory act that added this section, 2 or more voting members of
the association may incorporate a catastrophic claims corporation
under this section. Except as otherwise provided in this section, a
corporation is subject to the nonprofit corporation act, 1982 PA
162, MCL 450.2101 to 450.3192. A corporation is a charitable and
benevolent institution for the public benefit, and the
corporation's money and property are exempt from taxation by this
state or any political subdivision of this state.
(2) A corporation is subject to supervision by the director as
provided in this section. Except as otherwise provided in this
section, a corporation is not subject to the laws of this state
applicable to insurers and is not required to participate in a pool
or fund that an insurer is required to participate in. A
corporation is subject to all of the same reporting, loss reserve,
and investment requirements as an insurer authorized to transact
business in this state that affords insurance for the payment of
benefits described in section 3101(1).
(3) To incorporate a corporation, 2 or more voting members of
the association shall subscribe to and file with the director
articles of incorporation. The articles of incorporation shall
include all of the following:
(a) The names and places of residence of the incorporators.
(b) The location of the principal office of the corporation
for the transaction of business in this state.
(c) The name by which the corporation shall be known, which
shall include the words catastrophic, claims, and corporation, but
shall not include the words association, insurance, casualty,
surety, health and accident, mutual, or other words descriptive of
the insurance or surety business. The corporation also shall not
assume any name likely to mislead the public or any name already in
use by another corporation authorized to conduct business in this
state.
(d) The purposes of the corporation, which shall be limited to
purposes authorized under this section.
(e) A statement that the corporation is organized as a
nonprofit corporation on a nonstock, directorship basis under this
act and the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to
450.3912.
(f) Any other terms and conditions not inconsistent with this
section or other applicable law that the incorporators consider to
be necessary for the conduct of the affairs of the corporation.
(4) At least 1 of the incorporators of a corporation shall
sign the articles of incorporation of the corporation before a
notary public appointed under the Michigan notary public act, 2003
PA 238, MCL 55.261 to 55.315. The articles shall be filed in the
form prescribed by the director. If at the time of submission no
other catastrophic claims corporation is active, the director may
approve the articles of incorporation as authorized under
applicable law. The director shall not certify articles of
incorporation for more than 1 catastrophic claims corporation to be
active and operate at the same time. The director shall retain a
certified copy of the articles with the records of the department.
(5) Before a corporation conducts activities authorized under
this section and before January 1, 2014, the corporation shall file
with the director in the form and manner prescribed by the director
an application for a certificate of authority detailing all of the
following:
(a) The plan of operation under which the corporation proposes
to conduct its affairs.
(b) A copy of the corporation's bylaws.
(c) The name and place of residence of each member of the
board of directors of the corporation.
(d) Other information as prescribed by the director.
(6) After reviewing an application for a certificate of
authority filed by a corporation under subsection (5), if the
director is satisfied that the corporation can comply with the
provisions of this section and other applicable law, the director
shall issue to the corporation a certificate of authority to
commence business.
(7) The director may examine the affairs of a corporation. A
dissolution or liquidation of a corporation shall be conducted
under the supervision of the director.
(8) A corporation shall provide the director with access to
all records of the corporation that relate to the business of the
corporation. Except as otherwise provided in this subsection,
expenses incurred by the director for the examination of a
corporation shall be paid by the corporation. A corporation is
subject to fees imposed under section 224(4) to (11) in the same
manner as any other type of entity under this act.
(9) Before March 1 of each year after it is incorporated, a
corporation shall file with the director, in the form and manner
prescribed by the director, an annual report of its activities,
finances, and condition during the previous calendar year.
(10) A corporation shall have a board of directors. The board
shall operate the corporation in accordance with the plan of
operation and this section. All of the following apply to the
formation and operation of the board:
(a) The board shall consist of 7 members appointed by the
governor with the advice and consent of the senate. The governor
shall appoint the initial members within 60 days after the
corporation is incorporated.
(b) Of the members initially appointed, 2 shall be appointed
for a term of 4 years, 2 shall be appointed for a term of 3 years,
2 shall be appointed for a term of 2 years, and 1 shall be
appointed for a term of 1 year. After the initial appointments, a
member shall be appointed for a term of 4 years. If there is a
vacancy on the board, the vacancy shall be filled by the governor
in the same manner as the original appointment for the balance of
the unexpired term. Within 60 days after the initial members are
appointed, the director shall call the first meeting of the board.
At the first meeting, the board shall elect a chairperson from
among its members. Four members of a board constitute a quorum for
the transaction of business at a meeting of the board. An
affirmative vote of 4 board members is necessary for official
action of the board.
(c) The business of the board shall be conducted at a meeting
of the board that is held in this state, is open to the public, and
is held in a place that is available to the general public.
However, the board may establish reasonable rules and regulations
to minimize disruption of a meeting of the board. At least 10 days
but not more than 60 days before a meeting, the board shall provide
public notice of its meeting at its principal office and on an
internet website accessible by the public. The board shall include
in the public notice of its meeting the address where minutes of
the board may be inspected by the public. The board may meet in a
closed session for any of the following purposes:
(i) To consider the hiring, dismissal, suspension,
disciplining, or evaluation of officers or employees of the
corporation.
(ii) To consult with its attorney.
(iii) To comply with state or federal law, rules, or regulations
regarding privacy or confidentiality.
(d) The board shall display information concerning the
corporation's operations and activities on an internet website
accessible by the public.
(e) The board shall keep minutes of each board meeting. The
minutes shall be open to public inspection, and the board shall
make the minutes available at the address designated on the public
notice of its meetings. The board shall make copies of the minutes
available to the public at the reasonable estimated cost for
printing and copying. The board shall include all of the following
in the minutes:
(i) The date, time, and place of the meeting.
(ii) Board members who are present and absent.
(iii) Board decisions made at a meeting open to the public.
(iv) All roll call votes taken at the meeting.
(e) A member of the board is not liable for any lawful action
taken by the member in the performance of duties under this
section.
(11) For a loss occurrence attributable to a motor vehicle
accident for a policy issued or renewed after December 31, 2013, or
after the director issues the certificate of authority under
subsection (6), whichever is later, an injured person is entitled
to personal protection insurance benefits of up to the limit in
section 3107(1)(a) for medically appropriate products, services,
and accommodations, including all deductibles and copays as
follows:
(a) The insurer shall provide personal protection insurance
benefits up to $530,000.00 for the accident regardless of the
number of persons injured. The limit under this subdivision
includes all deductibles and copays. By January 1, 2015 and by
January 1 of each second year after 2015, a corporation shall
calculate an adjusted limit, increasing the existing limit under
this subdivision by 6% or the consumer price index for the 24-month
period that ends on the preceding September 30, whichever is less,
and rounding the result to the nearest $5,000.00. An adjusted limit
applies to loss occurrences that occur after July 1, 2015 for the
first adjustment or after July 1 of each second year after 2015 for
the following adjustments.
(b) A corporation shall provide personal protection insurance
benefits in excess of the amount paid by the insurer under
subdivision (a) up to the per-person limit in section 3107(1)(a).
The limit under this subdivision includes all deductibles and
copays.
(12) A corporation shall do all of the following:
(a) Assume liability as provided in subsection (11).
(b) Establish procedures by which an insurer may report to the
corporation each claim that on the basis of the injuries sustained
may be reasonably anticipated to exceed the limit in subsection
(11)(a). An insurer shall report each such claim to the corporation
and shall also advise the corporation of subsequent developments
that may reasonably be expected to affect the corporation.
(c) Maintain relevant loss and expense data relative to all
liabilities of the corporation. An insurer shall furnish statistics
regarding losses and expenses at the times and in the form and
detail as required by the plan of operation for the corporation.
(d) Before January 1, 2015 and before January 1 of each year
after 2015, determine the annual per-motor-vehicle fee to be
imposed under subsection (16). The total fees imposed must be
sufficient to cover the expected losses and expenses that the
corporation likely will incur during the period for which the fees
are applicable. The corporation shall calculate the per-motor-
vehicle fee under this subdivision by dividing the total expected
losses and expenses of the corporation for the period by the total
written car years of insurance providing the security required by
section 3101(1) written in this state during the previous period.
Total expected losses and expenses shall include an amount to cover
incurred but not reported losses for the period. The fee may be
adjusted for any excess or deficient amounts from previous periods.
Excesses or deficiencies from a previous period may be fully
adjusted in a single period or may be adjusted over several periods
as provided in the plan of operation. The corporation shall
determine a separate fee amount to be charged to an owner or
registrant of an insured historical vehicle equal to 20% of the fee
charged for a motor vehicle other than an historic vehicle. As used
in this subdivision:
(i) "Car" 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 fees.
(f) Receive and distribute all money required for the
operation of the corporation.
(g) Contract with an independent auditor for the preparation
of at least 1 audit of the financial statements of the corporation
each year and make the audit available to the public.
(13) A corporation also may do all of the following:
(a) Contract for goods and services with another person,
whether public or private, including, but not limited to, the
association, relating to all or a portion of services necessary for
the management and operation of the corporation and implementation
of this section, including, but not limited to, independent claims
management, actuarial, investment, and legal services.
(b) Sue and be sued in the name of the corporation.
(c) Reinsure all or any portion of its potential liability
with reinsurers licensed to transact business in this state or
approved by the director.
(d) Provide for appropriate housing, equipment, and personnel
necessary to assure the efficient operation of the corporation.
(e) Hear and determine complaints from interested parties
concerning the operation of the corporation.
(f) Borrow money necessary to effect the purposes of the
corporation at rates of interest determined by the corporation, and
issue notes, bonds, certificates, other evidences of indebtedness,
or pledges. Interest and earnings on notes, bonds, certificates, or
other obligations of a corporation are exempt from any taxes
imposed by this state or a political subdivision of this state.
(g) Take action necessary to facilitate and maintain the tax-
exempt status of the corporation and its income and operation, and
to facilitate the tax-exempt status of any bonds or other
indebtedness issued by or on behalf of the corporation.
(h) Invest and reinvest money of the corporation.
(i) Take, hold, and convey interests in property.
(j) Accept gifts, grants, loans, or other aid from another
person.
(k) Perform other acts not specifically enumerated in this
section that are necessary or proper to accomplish the purposes of
the corporation or to implement this section and that are not
inconsistent with this section.
(14) A board shall operate a corporation according to the plan
of operation and this section. The plan of operation must provide
for all of the following:
(a) The establishment of necessary facilities.
(b) The management and operation of the corporation.
(c) Procedures for charging and refunding fees, including
adjustments from excess or deficient assessments from prior
periods.
(d) Procedures governing the payment of fees to the
corporation.
(e) Reimbursement of a member of the board for actual and
necessary expenses incurred on corporation business.
(f) The investment policy of the corporation.
(g) Procedures governing the use of money transmitted from the
association under section 3104(23) to offset the corporation's
liabilities.
(h) Any other matters necessary to implement this section.
(15) To assure the efficient operation of a corporation, the
corporation may seek assistance and support from appropriate state
departments, agencies, and officers as required to perform the
powers and duties of the corporation. On request of the
corporation, a state department, agency, or officer shall provide
assistance and support to the corporation.
(16) An annual catastrophic claims fee is imposed on the owner
or registrant of each motor vehicle that maintains the security
required under section 3101(1). The owner or registrant, not the
insurer, is liable for the payment of the fee. The fee imposed by
this subsection is a charge imposed by the corporation and is not
part of an insurer's premium. Until December 31, 2014, the annual
amount of the catastrophic claims fee is the initial fee set under
section 3181(1). After December 31, 2014, the annual amount of the
catastrophic claims fee is the per-motor-vehicle fee determined by
a corporation under subsection (12)(d) plus, subject to subsection
(17), a charge of $25.00. The owner or registrant shall pay the
per-motor-vehicle fee for each motor vehicle at the time of payment
for a motor vehicle policy issued by an insurer authorized to
transact business in this state that affords insurance for the
payment of benefits described in section 3101(1). The insurer shall
collect the catastrophic claims fee on behalf of the corporation.
The insurer shall include the catastrophic claims fee on its policy
invoice. The insurer shall collect the fee with the insurer's usual
cycle for collection of insurance premiums and shall promptly
transmit all fees collected to the corporation on forms and in a
manner prescribed by the corporation and shall hold fees collected
in trust for the corporation until remitted to the corporation. An
insurer shall treat the failure to pay a fee imposed under this
subsection in the same manner as the failure to pay an insurance
premium. An insurer that receives a refund of a portion of a fee
paid from the corporation because of the cancellation of a policy
shall refund the portion refunded to the owner or registrant.
(17) The $25.00 charge under subsection (16) shall not be
added to the annual catastrophic claims fee after December 31,
2019. The corporation shall pay all of the $25.00 charges collected
under subsection (16) to the department of treasury. The department
of treasury shall expend the money paid under this subsection to
finance expenditures of medicaid managed care organizations as
defined in section 2 of the health insurance claims assessment act,
2011 PA 142, MCL 550.1732.
(18) A corporation may propose amendments to its articles of
incorporation, bylaws, or the plan of operation. The corporation
shall submit a proposed amendment to the director for approval. An
amendment is not effective until it has been approved by the
director.
(19) At least annually after the corporation has made its
first payment of personal protection insurance benefits to or for
an injured individual, the corporation shall provide the individual
with a notice of the benefit limit and a statement of cumulative
benefits paid by the corporation under the maximum for medically
appropriate products, services, and accommodations.
(20) A person shall not incorporate a catastrophic claims
corporation in this state except under this section. Except as
provided in this section, a person shall not incorporate, file,
register, or otherwise form in this state using a name that is the
same as or deceptively similar to "Michigan catastrophic claims
corporation", "state catastrophic claims corporation", or
"catastrophic claims corporation".
(21) A corporation is not liable for losses occurring before
January 1, 2014.
(22) A person, including, but not limited to, an agent or
officer of a corporation, who violates this section or who makes a
false statement with respect to a report or statement required by
this section is guilty of a misdemeanor punishable by imprisonment
for not more than 90 days or a fine of not more than $100.00, or
both.
(23) The legislature finds that there is a compelling state
interest in protecting public health and maintaining a viable,
orderly, and cost-effective private sector market for automobile
insurance in this state and also finds that a corporation created
and powers conferred by this section constitute a necessary program
and serve a necessary public purpose. The legislature determines
that it is essential for the public purposes of this section that
revenues received by a corporation be exempt from federal taxation
and it is the intent of the legislature that a corporation and
activities authorized under this section are for the purpose of
protecting and advancing the public interest in maintaining a
viable, orderly, and cost-effective private sector market for
automobile insurance in this state and protecting public health. It
is the intent of the legislature that a corporation is authorized
under this section to be established and operate in a manner
allowing the corporation to qualify as an entity recognized by the
internal revenue service as authorized to issue tax-exempt bonds.
This section, being necessary for and to secure the public health,
safety, convenience, and welfare of the citizens of this state,
shall be liberally construed to effect its public purposes.
(24) As used in this section:
(a) "Association" means the catastrophic claims association
created under section 3104.
(b) "Board" means the board of directors of a corporation.
(c) "Corporation" means catastrophic claims corporation
created under this section.
(d) "Ultimate loss" means the actual loss amounts that an
insurer or the corporation is obligated to pay and that are paid or
payable by the insurer or the corporation. Ultimate loss does not
include claim expenses.
Sec.
3107. (1) Except as otherwise provided in subsection (2),
this section, personal protection insurance benefits are payable
for the following:
(a)
Allowable For loss
occurrences under motor vehicle
accident policies issued or renewed before January 1, 2014,
allowable expenses consisting of all reasonable charges incurred
for reasonably necessary products, services, and accommodations for
an injured person's care, recovery, or rehabilitation. For loss
occurrences under motor vehicle accident policies issued or renewed
after December 31, 2013, personal protection benefits are payable
for allowable expenses consisting of all reasonable charges
incurred, up to $1,000,000.00 per injured person, for medically
appropriate products, services, and accommodations for the injured
person's care, recovery, or rehabilitation. Allowable expenses
within
personal protection insurance coverage shall do not
include
either of the following:
(i) Charges for a hospital room in excess of a reasonable and
customary
charge for semiprivate accommodations except if unless
the injured person requires special or intensive care.
(ii) Funeral and burial expenses in excess of the amount set
forth in the policy, which shall not be less than $1,750.00 or more
than $5,000.00.
(b) Work loss consisting of loss of income from work an
injured person would have performed during the first 3 years after
the date of the accident if he or she had not been injured. Work
loss does not include any loss after the date on which the injured
person dies. Because the benefits received from personal protection
insurance for loss of income are not taxable income, the benefits
payable for such loss of income shall be reduced 15% unless the
claimant presents to the insurer in support of his or her claim
reasonable proof of a lower value of the income tax advantage in
his or her case, in which case the lower value shall apply. For the
period beginning October 1, 2012 through September 30, 2013, the
benefits payable for work loss sustained in a single 30-day period
and the income earned by an injured person for work during the same
period together shall not exceed $5,189.00, which maximum shall
apply pro rata to any lesser period of work loss. Beginning October
1, 2013, the maximum shall be adjusted annually to reflect changes
in
the cost of living under rules prescribed by the commissioner
director but any change in the maximum shall apply only to benefits
arising out of accidents occurring subsequent to the date of change
in the maximum.
(c) Expenses not exceeding $20.00 per day, reasonably incurred
in obtaining ordinary and necessary services in lieu of those that,
if he or she had not been injured, an injured person would have
performed during the first 3 years after the date of the accident,
not for income but for the benefit of himself or herself or of his
or her dependent.
(2) Both of the following apply to personal protection
insurance benefits payable under subsection (1):
(a) A person who is 60 years of age or older and in the event
of an accidental bodily injury would not be eligible to receive
work loss benefits under subsection (1)(b) may waive coverage for
work loss benefits by signing a waiver on a form provided by the
insurer. An insurer shall offer a reduced premium rate to a person
who waives coverage under this subsection for work loss benefits.
Waiver of coverage for work loss benefits applies only to work loss
benefits payable to the person or persons who have signed the
waiver form.
(b) An insurer shall not be required to provide coverage for
the medical use of marihuana or for expenses related to the medical
use of marihuana.
(3) All of the following apply to allowable expenses under
subsection (1)(a):
(a) Coverage limits are provided on a per individual per loss
occurrence basis.
(b) Regardless of the number of motor vehicles insured or
insurers providing security in accordance with this chapter or any
other law providing for direct benefits without regard to fault for
motor or any other vehicle accidents, a person is not entitled to
recover duplicate benefits for the same expenses or losses
incurred.
(c) Personal protection insurance benefits payable to a person
injured in a motor vehicle accident while an operator or passenger
of a motorcycle are limited to $250,000.00. Personal protection
insurance benefits are not payable as described in this subdivision
to the extent that benefits covering the same loss are available
from other sources, regardless of the nature and number of benefit
sources available and regardless of the nature or form of the
benefits.
(d) Personal protection insurance benefits payable to a
nonresident of this state are limited to $50,000.00 per individual
per loss occurrence. Personal protection insurance benefits are not
payable as described in this subdivision to the extent that
benefits covering the same loss are available from other sources,
regardless of the nature and number of benefit sources available
and regardless of the nature or form of the benefits.
(e) A charge for a product, service, or accommodation for an
injured person's care, recovery, or rehabilitation is reasonable if
the charge is in accordance with section 3157.
(f) Medically appropriate products, services, and
accommodations rendered or prescribed by a health care facility or
agency or health care provider are those that are medically
necessary and do not include products, services, and accommodations
that would have been needed or used by the injured person or a
member of the injured person's household regardless of the loss
occurrence. An insurer shall not be required to provide coverage
for a product, service, or accommodation that is not medically
appropriate and medically necessary for an injured person's care,
recovery, or rehabilitation or not reasonably likely to result in
meaningful and measurable lasting improvement in the injured
person's functional status.
(g) If reimbursement for a product, service, or accommodation
rendered or prescribed is initially rejected in whole or in part by
an insurer as not being medically appropriate, the insurer, at the
provider's request, shall have the decision reexamined by a
provider who has the same license, certification, or registration
as the provider who provided the product, service, or accommodation
or who has a license, registration, or certification with a scope
of practice that includes the scope of practice of the license,
registration, or certification of the provider who provided the
product, service, or accommodation being reexamined. An insurer
shall designate a person with whom providers can discuss the
insurer's determinations regarding what is medically appropriate
and medically necessary.
(h) Allowable expenses do not include experimental treatment
or participation in research projects.
(i) Expenses for medically appropriate rehabilitation services
that are reasonably likely to produce significant rehabilitation
shall be reimbursed for a fixed-duration period of not more than 52
weeks. The services may be extended for 1 additional period of not
more than 52 weeks if the services are reasonably likely to produce
significant rehabilitation. A 52- or 104-week period may be
extended if it is reasonably likely that longer treatment may
produce significant measurable improvement.
(j) Allowable expenses include charges for home modification
accommodations directly necessitated by and related to the injured
person's injuries, if the accommodations are functionally necessary
to meet the injured person's treatment, rehabilitation,
maintenance, and daily living needs. Allowable expenses under this
subdivision are only payable up to $50,000.00. The director shall
adjust the limit under this subdivision every 2 years to reflect
the aggregate percentage change in the United States consumer price
index. An increase in the limit applies to injuries that result
from loss occurrences that occur after the effective date of the
increase.
(k) Expenses for a special motor vehicle or motor vehicle
modifications that are directly necessitated by and related to the
injured person's injuries are not allowable more frequently than
once every 7 years and are limited to a maximum of $50,000.00 every
7 years adjusted by the director every 2 years to reflect the
aggregate percentage change in the United States consumer price
index. An increase in the limit applies to injuries that result
from loss occurrences that occur after the effective date of the
increase.
(l) A product, service, or accommodation for an injured
person's care, recovery, or rehabilitation is an allowable expense
if it is provided for medical or rehabilitative reasons rather than
primarily for the convenience of the individual, the individual's
caregiver, or the health care provider.
(m) A product, service, or accommodation for an injured
person's care, recovery, or rehabilitation is an allowable expense
if it is provided in the most appropriate location where the
service may, for practical purposes, be safely and effectively
provided.
(4) At least annually after an insurer has made a payment to
or for an injured individual under a claim for personal protection
insurance benefits that has been reported to a corporation under
section 3104a(12)(b), the insurer shall provide the individual with
a statement of cumulative benefits paid and the amount of benefits
that remain available for the claim.
(5) This section does not prohibit the continued provision of
reasonably necessary products, services, and accommodations for
loss occurrences under policies issued or renewed before January 1,
2014. However, payment to providers for those products, services,
and accommodations are subject to the limits in this section and
section 3107c and the limitations on charges in section 3157.
Sec. 3107c. (1) Except as provided in subsections (3) and (4),
all of the following apply to allowable expenses under section
3107(1)(a) for attendant care provided in the home by a family or
household member:
(a) Payment is limited to a total of 56 hours per week,
regardless of the level of care provided.
(b) Payment is limited to $15.00 per hour, regardless of the
level of care provided. Beginning 3 years after the effective date
of the amendatory act that added this section and every 3 years
after that date, the director shall adjust this amount to reflect
the aggregate percentage change in the United States consumer price
index, rounded to the nearest 10 cents.
(c) The limitations in subdivisions (a) and (b) apply
regardless of whether the family or household member is licensed or
otherwise authorized to render the attendant care under article 15
of the public health code, 1978 PA 368, MCL 333.16202 to 333.18838,
or is employed by, under contract with, or in any way connected
with an individual or agency who is licensed or authorized to
render the care.
(2) Except as provided in subsections (3) and (4), both of the
following apply to allowable expenses under section 3107(1)(a) for
attendant care provided in the home by someone other than a family
or household member:
(a) Payment is limited to a total of 16 hours per day for
services performed by 1 or more individuals.
(b) Payment for the first 30 days of attendant care is not
subject to a copay. After 30 days, payment is subject to a copay of
20% up to a maximum of $200.00 per month.
(3) Except as provided in subsection (4), payment for
attendant care provided by a family or household member and someone
other than a family or household member is cumulatively limited to
24 hours per day.
(4) Notwithstanding the limitations in this section, an
insurer or a corporation formed under section 3104a may contract
with a family member to provide attendant care as an allowable
expense at any rate and for any number of hours per week.
Sec. 3114. (1) Except as provided in subsections (2), (3), and
(5), a personal protection insurance policy described in section
3101(1) applies to accidental bodily injury to the person named in
the policy, the person's spouse, and a relative of either domiciled
in the same household, if the injury arises from a motor vehicle
accident. A personal injury insurance policy described in section
3103(2) applies to accidental bodily injury to the person named in
the policy, the person's spouse, and a relative of either domiciled
in the same household, if the injury arises from a motorcycle
accident. When personal protection insurance benefits described in
section 3107(1), or personal injury benefits described in section
3103(2), are payable to or for the benefit of an injured person
under his or her own policy and would also be payable under the
policy of his or her spouse, relative, or relative's spouse, the
injured person's insurer shall pay all of the benefits and is not
entitled to recoupment from the other insurer. The coverage for
allowable expenses for 2 or more motor vehicles under 1 policy or
for 2 or more policies shall not be added together, combined, or
stacked to determine the limit of insurance coverage available for
each injured person covered under the policy.
(2) A person suffering accidental bodily injury while an
operator or a passenger of a motor vehicle operated in the business
of transporting passengers shall receive the personal protection
insurance benefits to which the person is entitled from the insurer
of the motor vehicle. This subsection does not apply to a passenger
in the following, unless that passenger is not entitled to personal
protection insurance benefits under any other policy:
(a) A school bus, as defined by the department of education,
providing transportation not prohibited by law.
(b) A bus operated by a common carrier of passengers certified
by the department of transportation.
(c) A bus operating under a government sponsored
transportation program.
(d) A bus operated by or providing service to a nonprofit
organization.
(e) A taxicab insured as prescribed in section 3101 or 3102.
(f) A bus operated by a canoe or other watercraft, bicycle, or
horse livery used only to transport passengers to or from a
destination point.
(3) An employee, his or her spouse, or a relative of either
domiciled
in the same household , who
suffers accidental bodily
injury while an occupant of a motor vehicle owned or registered by
the
employer , shall
receive personal protection insurance benefits
to which the employee is entitled from the insurer of the furnished
vehicle.
(4) Except as provided in subsections (1) to (3), a person
suffering accidental bodily injury arising from a motor vehicle
accident while an occupant of a motor vehicle shall claim personal
protection insurance benefits from insurers in the following order
of priority:
(a) The insurer of the owner or registrant of the vehicle
occupied.
(b) The insurer of the operator of the vehicle occupied.
(5) A person suffering accidental bodily injury arising from a
motor vehicle accident which shows evidence of the involvement of a
motor vehicle while an operator or passenger of a motorcycle shall
claim personal protection insurance benefits from insurers in the
following order of priority:
(a) The insurer of the owner or registrant of the motor
vehicle involved in the accident.
(b) The insurer of the operator of the motor vehicle involved
in the accident.
(c) The motor vehicle insurer of the operator of the
motorcycle involved in the accident.
(d) The motor vehicle insurer of the owner or registrant of
the motorcycle involved in the accident.
(6) If 2 or more insurers are in the same order of priority to
provide
personal protection insurance benefits, under subsection
(5),
an insurer paying benefits due is
entitled to partial
recoupment from the other insurers in the same order of priority,
together with a reasonable amount of partial recoupment of the
expense of processing the claim, in order to accomplish equitable
distribution of the loss among all of the insurers.
Sec. 3135. (1) A person remains subject to tort liability for
noneconomic loss caused by his or her ownership, maintenance, or
use of a motor vehicle only if the injured person has suffered
death, serious impairment of body function, or permanent serious
disfigurement.
(2) For a cause of action for damages pursuant to subsection
(1) filed on or after July 26, 1996, all of the following apply:
(a) The issues of whether the injured person has suffered
serious impairment of body function or permanent serious
disfigurement are questions of law for the court if the court finds
either of the following:
(i) There is no factual dispute concerning the nature and
extent of the person's injuries.
(ii) There is a factual dispute concerning the nature and
extent of the person's injuries, but the dispute is not material to
the determination whether the person has suffered a serious
impairment of body function or permanent serious disfigurement.
However, for a closed-head injury, a question of fact for the jury
is created if a licensed allopathic or osteopathic physician who
regularly diagnoses or treats closed-head injuries testifies under
oath that there may be a serious neurological injury.
(b) Damages shall be assessed on the basis of comparative
fault, except that damages shall not be assessed in favor of a
party who is more than 50% at fault.
(c) Damages shall not be assessed in favor of a party who was
operating his or her own vehicle at the time the injury occurred
and did not have in effect for that motor vehicle the security
required by section 3101 at the time the injury occurred.
(3) Notwithstanding any other provision of law, tort liability
arising from the ownership, maintenance, or use within this state
of a motor vehicle with respect to which the security required by
section 3101 was in effect is abolished except as to:
(a) Intentionally caused harm to persons or property. Even
though a person knows that harm to persons or property is
substantially certain to be caused by his or her act or omission,
the person does not cause or suffer that harm intentionally if he
or she acts or refrains from acting for the purpose of averting
injury to any person, including himself or herself, or for the
purpose of averting damage to tangible property.
(b) Damages for noneconomic loss as provided and limited in
subsections (1) and (2).
(c) Damages for allowable expenses, work loss, and survivor's
loss
as defined in excess of
the personal protection insurance
benefits
provided under 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 for payment of work loss and survivor's loss
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) or 3107(3)(d), as applicable. 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 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 be assessed on the basis of comparative
fault, except that damages shall 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 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 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.
3148. (1) An Subject to
subsection (2), an attorney is
entitled to a reasonable fee for advising and representing a
claimant in an action for personal or property protection insurance
benefits
which that are overdue. The attorney's fee shall be a
charge against the insurer in addition to the benefits recovered,
if the court finds that the insurer unreasonably refused to pay the
claim or unreasonably delayed in making proper payment. Evidence of
the manner in which an insurer processed a claim for benefits is
not admissible at the trial of an action to recover benefits under
this chapter.
(2) For a dispute over payment for allowable expenses under
section 3107(1)(a) for attendant care, attorney fees may only be
awarded under subsection (1) for services rendered in the 12-month
period immediately preceding the date the insurer is notified of
the dispute.
(3) (2)
An A court may award an insurer may be allowed by a
court
an award of a reasonable sum
against a claimant as an
attorney's
fee for the insurer's attorney in defense defending
against a claim that was in some respect fraudulent or so excessive
as to have no reasonable foundation. To the extent that personal or
property protection insurance benefits are then due or thereafter
come due to the claimant because of loss resulting from the injury
on
which the claim is based, such a an attorney fee awarded may
be
treated
taken as an offset against such the benefits. ;
also,
judgment
Judgment may also
be entered against the claimant for any
amount
of a an attorney fee awarded against him and that is not
offset
in this way against
benefits or otherwise paid.
Sec. 3157. (1) A physician, hospital, clinic, or other person
or institution lawfully rendering treatment to an injured person
for an accidental bodily injury covered by personal protection
insurance, and a person or institution providing rehabilitative
occupational training following the injury, may charge a reasonable
amount for the products, services, and accommodations rendered. The
charge shall not exceed the amount the person or institution
customarily
charges receives for like products, services, and
accommodations
in cases not involving that
do not involve personal
protection insurance, the program for medical assistance for the
medically indigent under the social welfare act, 1939 PA 280, MCL
400.1 to 400.119b, or the federal medicare program established
under title XVIII of the social security act, 42 USC 1395 to
1395kkk-1.
(2) Any information needed by an insurer or a corporation
formed under section 3104a to determine the appropriate
reimbursement under this section shall be provided by the person
providing the treatment or rehabilitative or occupational training.
(3) If an insurer or a corporation formed under section 3104a
needs information to determine the appropriate reimbursement under
this section and the information is unavailable or not provided or
the information provided is not sufficient to determine the
appropriate reimbursement, the insurer or corporation shall pay the
amount that would be paid under R 418.10101 to R 418.101503 of the
Michigan administrative code or schedules of maximum fees for
worker's disability compensation developed under those rules.
(4) Whether a charge is reasonable or whether a product,
service, or accommodation is medically appropriate and medically
necessary is a question of law to be decided by the court.
Sec. 3163. (1) 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.
(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 For loss occurrences
that occur before the effective
date of section 3107(3)(d), 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. 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 if in any of
the following situations:
(a) If no personal protection insurance is applicable to the
injury. ,
(b) If no personal protection insurance applicable to the
injury
can be identified. ,
(c) 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) 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,
(2) In any of the situations under subsection (1), 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.
(3) (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 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 XVIII of the social security act, 42 USC 1395 to 1395kkk-1.
(4) (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 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 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 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.
(5) An injured person claiming personal protection insurance
benefits under the assigned claims plan is limited to reasonable
charges incurred up to a maximum of $250,000.00 for medically
appropriate products, services, and accommodations for his or her
care, recovery, or rehabilitation.
(6) Any reimbursement ordered under this section and any
recovery obtained in circumstances where personal protection
insurance benefits have been or may be paid through the Michigan
automobile insurance placement facility shall include all benefits
and costs paid or incurred by insurers determined not to be
obligated to provide the applicable personal protection insurance
benefits, including actually incurred reasonable attorney fees and
interest at the rate prescribed in section 3175 as of December 31
of the year preceding the reimbursement order or recovery
determination.
Sec. 3181. (1) Within 90 days after the effective date of the
amendatory act that added this section, the director shall set an
initial annual catastrophic claims fee to be imposed under section
3104a(16) for insurance policies that provide the coverage required
by section 3101(1) issued after December 31, 2013 and before
January 1, 2015.
(2) By December 31, 2013, any insurer engaged in writing
insurance coverages that provide the security required by section
3101(1) shall file rates for policies issued or renewed after
December 31, 2013 that result in a per-vehicle reduction in the
annual premium of at least $150.00 to reflect the savings expected
as a result of the changes made to this act by the amendatory act
that added this section. The reduction under this subsection shall
be from rates in effect for the insurer on the date that the
amendatory act that added this section is enacted into law.
(3) An insurer described in subsection (2) shall not increase
the rates for coverages providing personal protection insurance
benefits before January 1, 2015.
Sec. 3301. (1) Every insurer authorized to write automobile
insurance in this state shall participate in an organization for
the purpose of doing all of the following:
(a) Providing the guarantee that automobile insurance coverage
will be available to any person who is unable to procure that
insurance through ordinary methods.
(b) Preserving to the public the benefits of price competition
by encouraging maximum use of the normal private insurance system.
(c) Providing funding for the Michigan automobile insurance
fraud authority and the automobile theft prevention authority.
(2) The organization created under this chapter shall be
called the "Michigan automobile insurance placement facility".
Sec. 3330. (1) The board of governors has the power to direct
the operation of the facility, including, at a minimum, the power
to do all of the following:
(a) To sue and be sued in the name of the facility. A judgment
against the facility shall not create any liabilities in the
individual participating members of the facility.
(b) To delegate ministerial duties, to hire a manager, to hire
legal counsel, and to contract for goods and services from others.
(c) To assess participating members on the basis of
participation ratios pursuant to section 3303 to cover anticipated
costs of operation and administration of the facility, to provide
for equitable servicing fees, and to share losses, profits, and
expenses pursuant to the plan of operation.
(d) To impose limitations on cancellation or nonrenewal by
participating members of facility-placed business, in addition to
the limitations imposed by chapters 21 and 32.
(e) To provide for a limited number of participating members
to receive equitable distribution of applicants; or to provide for
a limited number of participating members to service applicants in
a plan of sharing of losses in accordance with section 3320(1)(c)
and the plan of operation.
(f) To provide for standards of performance of service for the
participating members designated under subdivision (e).
(g) To adopt a plan of operation and any amendments to the
plan, consistent with this chapter, necessary to assure the fair,
reasonable, equitable, and nondiscriminatory manner of
administering the facility, including compliance with chapter 21,
and to provide for any other matters necessary or advisable to
implement this chapter, including matters necessary to comply with
the requirements of chapter 21.
(h) To assess self-insurers and insurers consistent with
chapter 31 and the assigned claims plan approved under section
3171.
(i) Until December 31, 2018, to annually assess participating
members and self-insurers an aggregate amount not to exceed
$21,000,000.00 to cover anticipated costs of operation and
administration of the Michigan automobile insurance fraud authority
and the automobile theft prevention authority.
(2) The board of governors shall institute or cause to be
instituted by the facility or on its behalf an automatic data
processing system for recording and compiling data relative to
individuals insured through the facility. An automatic data
processing system established under this subsection shall, to the
greatest extent possible, be made compatible with the automatic
data processing system maintained by the secretary of state, to
provide for the identification and review of individuals insured
through the facility.
(3) Before January 2, 2014, the board of governors shall amend
the plan of operation to establish appropriate procedures necessary
to make assessments for and to carry out the administrative duties
and functions of the Michigan automobile insurance fraud authority
and the automobile theft prevention authority as provided in
chapter 63.
Sec. 4501. As used in this chapter:
(a) "Authorized agency" means the department of state police;
a city, village, or township police department; a county sheriff's
department; a United States criminal investigative department or
agency; the prosecuting authority of a city, village, township,
county,
or state or of the United States; the office of financial
and
insurance regulation; department;
the Michigan automobile
insurance fraud authority; or the department of state.
(b) "Financial loss" includes, but is not limited to, loss of
earnings, out-of-pocket and other expenses, repair and replacement
costs, investigative costs, and claims payments.
(c) "Insurance policy" or "policy" means an insurance policy,
benefit contract of a self-funded plan, health maintenance
organization contract, nonprofit dental care corporation
certificate, or health care corporation certificate.
(d) "Insurer" means a property-casualty insurer, life insurer,
third party administrator, self-funded plan, health insurer, health
maintenance organization, nonprofit dental care corporation, health
care corporation, reinsurer, or any other entity regulated by the
insurance laws of this state and providing any form of insurance.
(e) "Michigan automobile insurance fraud authority" means the
Michigan automobile insurance fraud authority created under section
6302.
(f) (e)
"Organization" means an
organization or internal
department of an insurer established to detect and prevent
insurance fraud.
(g) (f)
"Person" includes an
individual, insurer, company,
association, organization, Lloyds, society, reciprocal or inter-
insurance exchange, partnership, syndicate, business trust,
corporation, and any other legal entity.
(h) (g)
"Practitioner" means a
licensee of this state
authorized to practice medicine and surgery, psychology,
chiropractic, or law, any other licensee of the state, or an
unlicensed health care provider whose services are compensated,
directly or indirectly, by insurance proceeds, or a licensee
similarly licensed in other states and nations, or the practitioner
of any nonmedical treatment rendered in accordance with a
recognized religious method of healing.
(i) (h)
"Runner",
"capper", or "steerer" means a person who
receives a pecuniary or other benefit from a practitioner, whether
directly or indirectly, for procuring or attempting to procure a
client, patient, or customer at the direction or request of, or in
cooperation with, a practitioner whose intent is to obtain benefits
under a contract of insurance or to assert a claim against an
insured or an insurer for providing services to the client,
patient, or customer. Runner, capper, or steerer does not include a
practitioner who procures clients, patients, or customers through
the use of public media.
(j) (i)
"Statement" includes, but
is not limited to, any
notice statement, proof of loss, bill of lading, receipt for
payment, invoice, account, estimate of property damages, bill for
services, claim form, diagnosis, prescription, hospital or doctor
record, X-rays, test result, or other evidence of loss, injury, or
expense.
Sec.
6107. (1) Prior to Subject
to section 6307(1), before
April 1 of each year, each insurer engaged in writing insurance
coverages
which that provide the security required by section
3101(1)
within in this state, as a condition of its authority to
transact insurance in this state, shall pay to the authority an
assessment
equal to $1.00 multiplied by the insurer's total earned
written car years of insurance providing the security required by
section
3101(1) written in this state during the immediately
preceding calendar year.
(2)
Money received pursuant to under
subsection (1), and all
other money received by the authority, shall be segregated and
placed in a fund to be known as the automobile theft prevention
fund. The authority shall administer the automobile theft
prevention
fund. shall be administered by the authority.
(3) Money in the automobile theft prevention fund shall be
expended 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) Provide financial support to the department of state police
and
local law enforcement agencies for economic automobile theft
enforcement teams.
(ii) Provide financial support to state or local law
enforcement agencies for programs designed to reduce the incidence
of
economic automobile theft.
(iii) Provide financial support to local prosecutors for
programs
designed to reduce the incidence of economic automobile
theft.
(iv) Provide financial support to judicial agencies for
programs
designed to reduce the incidence of economic automobile
theft.
(v) Provide financial support for neighborhood or community
organizations or business organizations for programs designed to
reduce the incidence of automobile theft.
(vi) Conduct 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 shall only
be
used for automobile theft prevention efforts. and shall be
distributed
based on need and efficacy as determined by the
authority.The board shall develop performance metrics
that are
consistent, controllable, measurable, and attainable. The board
shall use the metrics each year to evaluate new applications
submitted for funding consideration and to renew funding for
existing programs.
(5) Money in the automobile theft prevention fund shall not be
considered state money.
CHAPTER 63
MICHIGAN AUTOMOBILE INSURANCE FRAUD AUTHORITY
Sec. 6301. As used in this chapter:
(a) "Authority" means the Michigan automobile insurance fraud
authority created in section 6302.
(b) "Automobile insurance fraud" means a fraudulent insurance
act as described in section 4503 that is committed in connection
with automobile insurance, including an application for automobile
insurance.
(c) "Board" means the board of directors of the authority.
(d) "Car years" means net direct private passenger and
commercial nonfleet vehicle years of insurance providing the
security required by section 3101(1) written in this state for the
second previous calendar year as reported to the statistical agent
of each insurer.
(e) "Facility" means the Michigan automobile insurance
placement facility created under chapter 33.
Sec. 6302. (1) The Michigan automobile insurance fraud
authority is created within the facility. The facility shall
provide staff for the authority and shall carry out the
administrative duties and functions as directed by the board.
(2) The authority is not a state agency, and the money of the
authority is not state money. The authority is not a public body
under, and a record of the authority is not subject to disclosure
under, the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246.
(3) With the discretion to approve or disapprove programs to
be supported, the authority shall do both of the following:
(a) Provide financial support to state or local law
enforcement agencies for programs designed to reduce the incidence
of automobile insurance fraud.
(b) Provide financial support to state or local prosecutorial
agencies for programs designed to reduce the incidence of
automobile insurance fraud.
(4) The authority may provide financial support to law
enforcement, prosecutorial, insurance, education, or training
associations for programs designed to reduce the incidence of
automobile insurance fraud.
(5) The purposes, powers, and duties of the authority are
vested in and shall be exercised by a board of directors. The board
of directors shall consist of 15 members as follows:
(a) Eight members who represent automobile insurers in this
state, including the following:
(i) At least 2 members who represent insurer groups with
350,000 or more car years.
(ii) At least 2 members who represent insurer groups with fewer
than 350,000 but 100,000 or more car years.
(iii) At least 1 member who represents insurer groups with fewer
than 100,000 car years.
(b) The director or his or her designee.
(c) The attorney general or his or her designee.
(d) The director of the department of state police or his or
her designee.
(e) Two members who represent other law enforcement agencies
in this state.
(f) One member who represents prosecuting attorneys in this
state.
(g) One member who represents the general public.
(6) The members of the board representing insurers shall be
elected by automobile insurers doing business in this state from a
list of nominees proposed by the board of governors of the
facility. In preparing the list of nominees for the members, the
board of governors of the facility shall solicit nominations from
automobile insurers doing business in this state.
(7) The members of the board representing law enforcement
agencies other than the department of state police shall be
appointed by the governor. In appointing the members, the governor
shall solicit input from various law enforcement associations in
this state.
(8) The member of the board representing prosecuting attorneys
shall be appointed by the governor. In appointing the member, the
governor shall solicit input from the prosecuting attorneys
association of Michigan.
(9) The member of the board representing the general public
shall be appointed by the governor. The governor shall appoint an
individual who is a resident of this state and is not employed by
or under contract with a state or local unit of government or an
insurer.
(10) Except as otherwise provided in this subsection, a member
of the board shall serve for a term of 4 years or until his or her
successor is elected, designated, or appointed, whichever occurs
later. Of the members first elected or appointed under this
section, 2 members representing insurers and 1 member representing
law enforcement agencies shall serve for a term of 2 years, 3
members representing insurers, the member representing prosecuting
attorneys, and the member representing the general public shall
serve for a term of 3 years, and 3 members representing insurers
and 1 member representing law enforcement agencies shall serve for
a term of 4 years.
(11) The board is dissolved on January 1, 2019.
Sec. 6303. (1) A member of the board shall serve without
compensation, except that the board shall reimburse a member in a
reasonable amount for necessary travel and expenses.
(2) A majority of the members of the board constitute a quorum
for the transaction of business at a meeting or the exercise of a
power or function of the authority, notwithstanding the existence
of 1 or more vacancies. Notwithstanding any other provision of law,
action may be taken by the authority at a meeting on a vote of the
majority of its members present in person or through the use of
amplified telephonic equipment, if authorized by the bylaws or plan
of operation of the board. The authority shall meet at the call of
the chair or as may be provided in the bylaws of the authority.
Meetings of the authority may be held anywhere in this state.
(3) The board shall adopt a plan of operation by a majority
vote of the board. Vacancies on the board shall be filled in
accordance with the plan of operation.
(4) The board shall conduct its business at meetings that are
held in this state, open to the public, and held in a place that is
available to the general public. However, the board may establish
reasonable rules to minimize disruption of a meeting of the board.
At least 10 days but not more than 60 days before a meeting, the
board shall provide public notice of the meeting at the board's
principal office and on a publicly accessible internet website. The
board shall include in the public notice of its meeting the address
where minutes of the board may be inspected by the public. The
board may meet in a closed session for any of the following
purposes:
(a) To consider the hiring, dismissal, suspension,
disciplining, or evaluation of officers or employees of the
authority.
(b) To consult with its attorney.
(c) To comply with state or federal law, rules, or regulations
regarding privacy or confidentiality.
(5) The board shall display information concerning the
authority's operations and activities, including, but not limited
to, the annual financial report required under section 6310, on a
publicly accessible internet website.
(6) The board shall keep minutes of each board meeting. The
board shall make the minutes open to public inspection and
available at the address designated on the public notice of its
meetings. The board shall make copies of the minutes available to
the public at the reasonable estimated cost for printing and
copying. The board shall include all of the following in the
minutes:
(a) The date, time, and place of the meeting.
(b) The names of board members who are present and board
members who are absent.
(c) Board decisions made during any portion of the meeting
that was open to the public.
(d) All roll call votes taken at the meeting.
Sec. 6304. (1) Before January 1, 2019, the authority shall
transfer all assets of the authority to the department of state
police for the benefit of the automobile theft prevention
authority.
(2) On January 1, 2019, the authority is dissolved.
Sec. 6305. The board has the powers necessary to carry out its
duties under this act, including, but not limited to, the power to
do the following:
(a) Sue and be sued in the name of the authority.
(b) Solicit and accept gifts, grants, loans, and other aid
from any person, the federal government, this state, a local unit
of government, or an agency of the federal government, this state,
or a local unit of government.
(c) Make grants and investments.
(d) Procure insurance against any loss in connection with its
property, assets, or activities.
(e) Invest at its discretion any money held in reserve or
sinking funds or any money not required for immediate use or
disbursement and to select and use depositories for its money.
(f) Contract for goods and services and engage personnel as
necessary.
(g) Indemnify and procure insurance indemnifying any member of
the board for personal loss or accountability resulting from the
member's action or inaction as a member of the board.
(h) Perform other acts not specifically enumerated in this
section that are necessary or proper to accomplish the purposes of
the authority and that are not inconsistent with this section or
the plan of operation.
Sec. 6307. (1) Section 6107(1) does not apply from January 1,
2014 to December 31, 2018.
(2) Before April 1 of each year from 2014 to 2018, an insurer
or self-insurer engaged in writing insurance coverages that provide
the security required by section 3101(1) in this state, as a
condition of its authority to transact insurance in this state,
shall pay to the facility, for deposit into the account of the
authority, an assessment determined by the facility as provided in
the plan of operation. The assessment shall be based on the ratio
of the car years written by the insurer or self-insurer to the
total car years written in this state by all insurers and self-
insurers.
(3) The facility shall segregate all money received under
subsection (2), and all other money received by the authority, from
other money of the facility, if applicable. The facility shall only
expend the money received under subsection (2) as directed by the
board.
(4) From the money received each year under subsection (2),
the board shall pay at least $6,250,000.00 to the automobile theft
prevention fund created in section 6107.
Sec. 6308. (1) An insurer authorized to transact automobile
insurance in this state, as a condition of its authority to
transact insurance in this state, shall report automobile insurance
fraud data to the authority using the format and procedures adopted
by the board.
(2) The department of state police shall cooperate with the
authority and shall provide available motor vehicle fraud and theft
statistics to the authority on request.
(3) The board shall develop performance metrics that are
consistent, controllable, measurable, and attainable. The board
shall use the metrics each year to evaluate new applications
submitted for funding consideration and to renew funding for
existing programs.
Sec. 6310. (1) Beginning January 1 of the year after the
effective date of the amendatory act that added this section, the
authority shall prepare and publish an annual financial report, and
beginning July 1 of the year after the effective date of the
amendatory act that added this section, the authority shall prepare
and publish an annual report to the legislature on the authority's
efforts to prevent automobile insurance fraud and cost savings that
have resulted from those efforts.
(2) The annual report to the legislature required under
subsection (1) shall detail the automobile insurance fraud
occurring in this state for the previous year, assess the impact of
the fraud on rates charged for automobile insurance, summarize
prevention programs, and outline allocations made by the authority.
The members of the board, insurers, and the director shall
cooperate in developing the report as requested by the authority
and shall make available to the authority records and statistics
concerning automobile insurance fraud, including the number of
instances of suspected and confirmed insurance fraud, number of
prosecutions and convictions involving automobile insurance fraud,
and automobile insurance fraud recidivism. The authority shall
evaluate the impact automobile insurance fraud has on the citizens
of this state and the costs incurred by the citizens through
insurance, police enforcement, prosecution, and incarceration
because of automobile insurance fraud. The report to the
legislature required by this section shall be submitted to the
senate and house of representatives standing committees with
primary jurisdiction over insurance issues and the director.
Enacting section 1. The title and sections 3301, 3330, 4501,
and 6107 of the insurance code of 1956, 1956 PA 218, MCL 500.3301,
500.3330, 500.4501, and 500.6107, as amended by this amendatory
act, and sections 6301, 6302, 6303, 6304, 6305, 6307, 6308, and
6310 of the insurance code of 1956, 1956 PA 218, as added by this
amendatory act, take effect January 1, 2014.