Bill Text: MI HB5934 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Insurance: no-fault; assigned claims plan; require unlimited-level benefit reimbursement for bicyclists. Amends sec. 3172 of 1956 PA 218 (MCL 500.3172).
Spectrum: Strong Partisan Bill (Democrat 31-2)
Status: (Introduced - Dead) 2020-07-22 - Bill Electronically Reproduced 07/21/2020 [HB5934 Detail]
Download: Michigan-2019-HB5934-Introduced.html
HOUSE BILL NO. 5934
July 21, 2020, Introduced by Reps. Hood, Stone,
Guerra, Tyrone Carter, Haadsma, Wittenberg, Kuppa, Pagan, Clemente, Brenda
Carter, Garrett, Cynthia Johnson, Lasinski, Rabhi, Hertel, Elder, Cambensy,
Hoadley, LaGrand, Byrd, Garza, Kennedy, Cynthia Neeley, Hope, Pohutsky,
Love, Gay-Dagnogo, Yancey, Green, Wozniak, Greig, Hammoud and Ellison and
referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 3172 (MCL 500.3172), as amended by 2019 PA 21.
the people of the state of michigan enact:
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 claim personal
protection insurance benefits through the assigned claims plan if any of the
following apply:
(a) No personal
protection insurance is applicable to the injury.
(b) No personal
protection insurance applicable to the injury can be identified.
(c) No personal
protection insurance applicable to the injury can 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.
(d) 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.
(2) Unpaid benefits due
or coming due as described in subsection (1) 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) A person entitled to
claim personal protection insurance benefits through the assigned claims plan
under subsection (1) shall file a completed application on a claim form
provided by the Michigan automobile insurance placement facility and provide
reasonable proof of loss to the Michigan automobile insurance placement
facility. The Michigan automobile insurance placement facility or an insurer
assigned to administer a claim on behalf of the Michigan automobile insurance
placement facility under the assigned claims plan shall specify in writing the
materials that constitute a reasonable proof of loss within 60 days after
receipt by the Michigan automobile insurance placement facility of an
application that complies with this subsection.
(4) The Michigan
automobile insurance placement facility or an insurer assigned to administer a
claim on behalf of the Michigan automobile insurance placement facility under
the assigned claims plan is not required to pay interest in connection with a
claim for any period of time during which the claim is reasonably in dispute.
(5) 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 must be reduced to the extent that benefits
covering the same loss are available from other sources, regardless of the
nature or number of benefit sources available and regardless of the nature or
form of the benefits, to a person claiming personal protection insurance
benefits through the assigned claims plan. This subsection only applies if the
personal protection insurance benefits are payable through the assigned claims
plan under subsection (1)(a), (b), or (d). 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 health insurance for the aged and
disabled under subchapter XVIII of the social security act, 42 USC 1395 to 1395lll.
(6) 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 Michigan automobile insurance placement facility
shall assign the claim to an insurer and the insurer shall immediately provide
personal protection insurance benefits to the claimant or claimants entitled to
benefits.
(c) The insurer assigned the claim by the Michigan automobile
insurance placement facility shall immediately commence an action on behalf of
the Michigan automobile insurance placement facility 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 must include all benefits and costs paid or
incurred by the Michigan automobile insurance placement facility and all
benefits and costs paid or incurred by insurers determined not to be obligated
to provide applicable personal protection insurance benefits, including
incurred attorney fees and interest at the rate prescribed in section 3175
applicable on December 31 of the year preceding the determination of the
circuit court.
(7) The Michigan automobile insurance placement facility and
the insurer to whom a claim is assigned by the Michigan automobile insurance
placement facility are only required to provide personal protection insurance
benefits under section 3107(1)(a) up to whichever of the following is
applicable:
(a) Unless subdivision (b) or (c) applies, the limit provided in section
3107c(1)(b).
(b) If the person is entitled to claim benefits under the
assigned claims plan under section 3107d(6)(c) or 3109a(2)(d)(ii), $2,000,000.00.
(c) If
the person is entitled to claim benefits under the assigned claims plan under
section 3115 and was riding a bicycle at the time he or she suffered the
accidental bodily injury, the person is entitled to coverage as provided under
section 3107c(1)(d).
