Bill Text: MI HB5677 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Insurance; no-fault; choice of level of personal insurance protection benefits; revise for minor children. Amends sec. 3107c of 1956 PA 218 (MCL 500.3107c).
Spectrum: Partisan Bill (Democrat 23-0)
Status: (Introduced - Dead) 2020-03-25 - Bill Electronically Reproduced 03/25/2020 [HB5677 Detail]
Download: Michigan-2019-HB5677-Introduced.html
HOUSE BILL NO. 5677
March 17, 2020, Introduced by Reps. Garrett,
Yancey, Byrd, Wittenberg, Gay-Dagnogo, Tyrone Carter, Cambensy, Stone,
Peterson, Brenda Carter, Kennedy, Lasinski, Warren, Hood, Clemente,
Sneller, Bolden, Shannon, Guerra, Whitsett, Cynthia Johnson, Rabhi and
Jones and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 3107c (MCL 500.3107c), as added by 2019 PA 22.
the people of the state of michigan enact:
Sec. 3107c. (1) Except as provided in sections 3107d
and 3109a, and subject to subsection (5), for an insurance policy that provides
the security required under section 3101(1) and is issued or renewed after July
1, 2020, the applicant or named insured shall, in a way required under section
3107e and on a form approved by the director, select 1 of the following
coverage levels for personal protection insurance benefits under section
3107(1)(a):
(a) A limit of $50,000.00
per individual per loss occurrence for any personal protection insurance
benefits under section 3107(1)(a). The selection of a limit under this
subdivision is only available to an applicant or named insured if both of the
following apply:
(i) The applicant or named insured is enrolled in Medicaid, as
that term is defined in section 3157.
(ii) The applicant's
or named insured's spouse and any relative of either who resides in the same
household has qualified health coverage, as that term is defined in section
3107d, is enrolled in Medicaid, or has coverage for the payment of benefits
under section 3107(1)(a) from an insurer that provides the security required by
section 3101(1).
(b) A limit of $250,000.00 per individual per loss occurrence
for any personal protection insurance benefits under section 3107(1)(a).
(c) A limit of $500,000.00 per individual per loss occurrence
for any personal protection insurance benefits under section 3107(1)(a).
(d) No limit for personal protection insurance benefits under
section 3107(1)(a).
(2) The form required under subsection (1) must do all of the
following:
(a) State, in a conspicuous manner, the benefits and risks
associated with each coverage option.
(b) Provide a way for the applicant or named insured to mark
the form to acknowledge that he or she has read the form and understands the
options available.
(c) Allow the applicant or named insured to mark the form to
make the selection of coverage level under subsection (1).
(d) Require the applicant or named insured to sign the form.
(3) If an insurance policy is issued or renewed as described
in subsection (1) and the applicant or named insured has not made an effective
selection under subsection (1) but a premium or premium installment has been
paid, there is a rebuttable presumption that the amount of the premium or
installment paid accurately reflects the level of coverage applicable to the
policy under subsection (1).
(4) If an insurance policy is issued or renewed as described
in subsection (1), the applicant or named insured has not made an effective
selection under subsection (1), and a presumption under subsection (3) does not
apply, subsection (1)(d) applies to the policy.
(5) The coverage level selected under subsection (1) applies
to the named insured, the named insured's spouse, and a relative of either
domiciled in the same household, and any other person with a right to claim
personal protection insurance benefits under the policy. However, a coverage level selected under subsection
(1)(a), (b), or (c) does not apply to a minor child of the named insured, and
the minor is entitled to coverage as provided under subsection (1)(d).
(6) If benefits are payable under section 3107(1)(a) under 2
or more insurance policies, the benefits are only payable up to an aggregate
coverage limit that equals the highest available coverage limit under any 1 of
the policies.
(7) This section applies for a transportation network company
vehicle, but an applicant or named insured that is a transportation network
company shall only select limits under either subsection (1)(b), (c), or (d).
As used in this subsection:
(a) "Transportation network company" means that
term as defined in section 2 of the limousine, taxicab, and transportation
network company act, 2016 PA 345, MCL 257.2102.
(b) "Transportation network company vehicle" means
that term as defined in section 3114.
(8) An insurer shall offer, for a policy that provides the
security required under section 3101(1) to which a limit under subsection
(1)(a) to (c) applies, a rider that will provide coverage for attendant care in
excess of the applicable limit.