Bill Text: MI SB0001 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Insurance: no-fault; coverage and benefits; make miscellaneous changes. Amends secs. 150, 224, 1244, 2038, 2040, 2069, 2105, 2106, 2108, 2111, 2118, 2120, 2151, 3009, 3101, 3101a, 3104, 3107, 3109a, 3111, 3112, 3113, 3114, 3115, 3135, 3142, 3145, 3148, 3151, 3157, 3163, 3172, 3173a, 3174, 3175 & 3177 of 1956 PA 218 (MCL 500.150 et seq.) & adds secs. 261, 271, 2013a, 2111f, 2116b, 2162, 3107c, 3107d, 3107e, 3157a & 3157b & chs. 31A and 63.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Passed) 2019-06-12 - Assigned Pa 0021'19 With Immediate Effect [SB0001 Detail]
Download: Michigan-2019-SB0001-Introduced.html
SENATE BILL No. 1
January 15, 2019, Introduced by Senator NESBITT and referred to the Committee on Insurance and Banking.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 3148 and 3157 (MCL 500.3148 and 500.3157), and
by adding sections 3100, 3107c, 3109b, and 3157a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3100. It is the intent of the legislature in making
changes to this act relating to the purchase of automobile
insurance in this state to bring much needed cost controls to the
no-fault system, thereby providing rate relief for consumers,
reducing the number of uninsured drivers in this state, and
incentivizing more automobile insurers to write business in this
state. The legislature recognizes that drivers in this state pay
car insurance rates that are, on average, 83% higher than the
national average.
Sec. 3107c. It is the intent of the legislature to allow
seniors and other individuals over 62 years of age with lifetime
health care benefits to enjoy savings on their automobile insurance
premiums by choosing to not carry personal injury protection
insurance when they effectively already have coverage for injuries
in automobile accidents.
Sec. 3109b. It is the intent of the legislature that an
individual who purchases an automobile insurance policy in this
state have the ability to choose an amount of personal injury
protection coverage that suits the individual's needs, lifestyle,
and budget. The legislature further intends when an individual
selects a coverage level for personal injury protection benefits
from those enumerated in statute, the individual will enjoy a
corresponding savings on his or her automobile insurance premium
that corresponds with the chosen benefit level.
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 must not exceed the amount the person or institution
customarily charges for like products, services and accommodations
in cases not involving insurance.
(2) It is the intent of the legislature, in seeking to reduce
medical cost inflation in this state related to no-fault insurance
claims that is 90% higher than normal health care inflation, that a
physician, hospital, clinic, or other person or institution that
renders a treatment, training, product, service, or accommodation
to an injured person for an accidental bodily injury not be
eligible for payment or reimbursement under this chapter of more
than a statutorily determined amount that is a reasonable payment
for the treatment or service rendered.
Sec. 3157a. It is the intent of the legislature, in seeking to
reduce overutilization of medical treatments, products, and
services related to no-fault insurance claims in this state, that
an annual utilization review be conducted by an independent party
to identify utilization above the usual range for the treatment
based on medically accepted standards, with consequences for
providers that knowingly provide false or misleading information.
Sec. 3148. (1) 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 are overdue. The
attorney's
fee shall must 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.
(2) 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 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 fee may be treated as an offset against such
benefits; also, judgment may be entered against the claimant for
any amount of a fee awarded against him and not offset in this way
or otherwise paid.
(3) It is the intent of the legislature to reduce fraud and
conflicts of interest in the no-fault system by providing for
restrictions on the common ownership of, and referrals between and
among, entities that provide legal, medical, and transportation
services.
Enacting section 1. This bill may be known as the "auto
insurance rate reduction plan".
