Bill Text: MI SB0248 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Insurance; no-fault; coverage and benefits; make miscellaneous changes and create an insurance fraud prevention authority. Amends title & secs. 3101, 3104, 3107, 3107a, 3114, 3135, 3157, 3163, 3301, 3310, 3330, 4501 & 6107 of 1956 PA 218 (MCL 500.3101 et seq.) & adds sec. 3107c & ch. 63. TIE BAR WITH: SB 0249'15
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2015-04-23 - Referred To Second Reading [SB0248 Detail]
Download: Michigan-2015-SB0248-Introduced.html
SENATE BILL No. 248
March 26, 2015, Introduced by Senator HUNE 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 3101, 3104, 3107, 3107a, 3114,
3135, 3157, 3163, 3301, 3310, 3330, 4501, and 6107 (MCL 500.3101,
500.3104, 500.3107, 500.3107a, 500.3114, 500.3135, 500.3157,
500.3163, 500.3301, 500.3310, 500.3330, 500.4501, and 500.6107),
the title as amended by 2002 PA 304, section 3101 as amended by
2014 PA 492, section 3104 as amended by 2002 PA 662, section 3107
as amended by 2012 PA 542, section 3107a as amended by 1991 PA 191,
section 3114 as amended by 2002 PA 38, section 3135 as amended by
2012 PA 158, section 3163 as amended by 2002 PA 697, section 3310
as amended by 2001 PA 228, section 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 section 3107c 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,
and other corporations 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; 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. 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 is
only required to be in effect during the period the motor vehicle
is driven or moved on 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 on
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) "Commercial quadricycle" means a vehicle to which all of
the following apply:
(i) The vehicle has fully operative pedals for propulsion
entirely by human power.
(ii) The vehicle has at least 4 wheels and is operated in a
manner similar to a bicycle.
(iii) The vehicle has at least 6 seats for passengers.
(iv) The vehicle is designed to be occupied by a driver and
powered either by passengers providing pedal power to the drive
train of the vehicle or by a motor capable of propelling the
vehicle in the absence of human power.
(v) The vehicle is used for commercial purposes.
(vi) The vehicle is operated by the owner of the vehicle or an
employee of the owner of the vehicle.
(c) "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.
(d) (c)
"Golf cart" means a
vehicle designed for
transportation while playing the game of golf.
(e) (d)
"Highway" means highway
or street as that term is
defined in section 20 of the Michigan vehicle code, 1949 PA 300,
MCL 257.20.
(f) (e)
"Moped" means that term
as defined in section 32b of
the Michigan vehicle code, 1949 PA 300, MCL 257.32b.
(g) (f)
"Motorcycle" means a
vehicle 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, and is equipped with a motor
that exceeds 50 cubic centimeters piston displacement. For purposes
of this subdivision, the wheels on any attachment to the vehicle
are not considered as wheels in contact with the ground. Motorcycle
does not include a moped or an ORV.
(h) (g)
"Motorcycle accident"
means a loss that involves the
ownership, operation, maintenance, or use of a motorcycle as a
motorcycle, but does not involve the ownership, operation,
maintenance, or use of a motor vehicle as a motor vehicle.
(i) (h)
"Motor vehicle" means a
vehicle, including a trailer,
that is operated or designed for operation on a public highway by
power other than muscular power and has more than 2 wheels. Motor
vehicle does not include any of the following:
(i) A motorcycle.
(ii) A moped.
(iii) A farm tractor or other implement of husbandry that is
not subject to the registration requirements of the Michigan
vehicle code under section 216 of the Michigan vehicle code, 1949
PA 300, MCL 257.216.
(iv) An ORV.
(v) A golf cart.
(vi) A power-driven mobility device.
(vii) A commercial quadricycle.
(j) (i)
"Motor vehicle accident"
means a loss that involves
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.
(k) (j)
"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 on
a public highway and
has
the security described in section 3101 required under
subsection (1) or section 3103 in effect.
(l) (k)
"Owner" means any of the
following:
(i) A person renting a motor vehicle or having the use of a
motor vehicle, under a lease or otherwise, for a period that is
greater than 30 days.
(ii) A person renting a motorcycle or having the use of a
motorcycle under a lease for a period that is greater than 30 days,
or otherwise for a period that is greater than 30 consecutive days.
A person who borrows a motorcycle for a period that is less than 30
consecutive days with the consent of the owner is not an owner
under this subparagraph.
(iii) A person that holds the legal title to a motor vehicle
or motorcycle, other than a person engaged in the business of
leasing motor vehicles or motorcycles that is the lessor of a motor
vehicle or motorcycle under a lease that provides for the use of
the motor vehicle or motorcycle by the lessee for a period that is
greater than 30 days.
(iv) A person that has the immediate right of possession of a
motor vehicle or motorcycle under an installment sale contract.
(m) (l) "Power-driven
mobility device" means a wheelchair or
other mobility device powered by a battery, fuel, or other engine
and designed to be used by an individual with a mobility disability
for the purpose of locomotion.
(n) (m)
"Registrant" does not
include a person engaged in the
business of leasing motor vehicles or motorcycles that is the
lessor of a motor vehicle or motorcycle under a lease that provides
for the use of the motor vehicle or motorcycle by the lessee for a
period that is longer than 30 days.
(3) Security required by subsection (1) may be provided under
a policy issued by an authorized insurer 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 on 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 a person that files 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 If an
incorporated association is
issued a certificate of authority under subsection (5), the
unincorporated association shall be known as the Michigan Legacy
Claims Association. Until the unincorporated association is
dissolved, an insurer engaged in writing insurance coverages 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 be a member of the association and shall be is
bound by the plan of operation of the unincorporated association.
Each
Until the unincorporated
association is dissolved, an insurer
engaged in writing insurance coverages that provide the security
required
by section 3103(1) within in
this state, as a condition of
its
authority to transact insurance in this state, shall be is
considered to be a member of the unincorporated association, but
only for purposes of accepting indemnification under subsection (8)
and the calculation and charging of premiums under subsection
(7)(d).
(14). Except as expressly provided in this section, the
an
unincorporated or incorporated association is not an insurer and 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) Two or more voting directors of the board of the
unincorporated association may form an incorporated association by
subscribing to and filing with the director of the department
articles of incorporation. If the unincorporated association has
been dissolved, 2 or more individuals may form an incorporated
association by subscribing to and filing with the director of the
department articles of incorporation. Articles of incorporation
filed under this subsection must include all of the following:
(a) The names and places of residence of the incorporators.
(b) The location of the principal office of the incorporated
association for the transaction of business in this state.
(c) The name by which the incorporated association will be
known, which must include the words "Michigan", "catastrophic",
"claims", and "association", but may not include the words
"legacy", "insurance", "casualty", "surety", "health and accident",
"mutual", or other words descriptive of the insurance or surety
business.
(d) The purposes of the incorporated association, which must
be limited to purposes authorized for an incorporated association
under this section.
(e) A statement that the incorporated association is organized
on a nonstock, directorship basis under this act and the nonprofit
corporation act, 1982 PA 162, MCL 450.2101 to 450.3192.
(f) Any other terms and conditions that are not inconsistent
with this section or other applicable law and that the
incorporators consider to be necessary for the conduct of the
affairs of the incorporated association.
(3) At least 1 of the incorporators of an incorporated
association shall sign the articles of incorporation before a
notary public appointed under the Michigan notary public act, 2003
PA 238, MCL 55.261 to 55.315. The articles must be filed in the
form prescribed by the director of the department. If at the time
of submission no other incorporated association is active, the
director of the department may approve and certify the articles of
incorporation as authorized under applicable law. The director of
the department shall not certify articles of incorporation for more
than 1 incorporated association to be active and operate in this
state at the same time. If the director of the department approves
the articles of incorporation, the director of the department shall
certify the articles and transmit 2 certified copies of the
articles to the incorporators. The incorporators shall file 1
certified copy with the bureau of commercial services of the
department of licensing and regulatory affairs and retain 1
certified copy with the records of the incorporated association.
The director of the department shall retain a certified copy of the
articles of incorporation with the records of the department. The
board of an incorporated association, with the approval of the
director of the department and in the manner provided in the
articles of incorporation, may do both of the following:
(a) Amend the articles of incorporation in any manner not
inconsistent with this section and other applicable law.
(b) Integrate into a single instrument as restated articles of
incorporation the provisions of the incorporated association's
articles of incorporation then in effect, including prior
amendments.
(4) Before an incorporated association conducts claims
activities authorized under this section and within 90 days after
the director of the department certifies the articles of
incorporation of the incorporated association under subsection (3),
the incorporated association shall file with the director of the
department in the form and manner prescribed by the director of the
department an application for a certificate of authority detailing
all of the following:
(a) The plan of operation under which the incorporated
association proposes to conduct its affairs.
(b) A copy of the incorporated association's bylaws.
(c) Other information as prescribed by the director of the
department.
(5) After reviewing an application for a certificate of
authority filed by an incorporated association under subsection
(4), if the director of the department is satisfied that the
incorporated association can comply with this section and other
applicable law, the director of the department shall issue to the
incorporated association a certificate of authority to commence
claims activities authorized under this section. When issuing a
certificate of authority to an incorporated association, the
director of the department shall establish the initial catastrophic
claims assessment to be assessed as provided in subsection (31).
(6) Except as otherwise provided in this section, an
incorporated association is subject to the nonprofit corporation
act, 1982 PA 162, MCL 450.2101 to 450.3192. An incorporated
association is a charitable and benevolent institution for the
public benefit and the incorporated association's money and
property are exempt from taxation by this state or any political
subdivision of this state. An incorporated association may not be
incorporated in this state except under this section.
(7) Except as otherwise provided in this section, an
incorporated association is not subject to the laws of this state
applicable to insurers and is not required to participate in a pool
or fund in which an insurer is required to participate. An
incorporated association is subject to supervision by the director
of the department as provided in this section. A dissolution or
liquidation of an incorporated association must be conducted under
the supervision of the director of the department, who has the same
power relating to the dissolution or liquidation as is granted to
the director of the department under this act for dissolution or
liquidation of other types of entities.
(8) (2)
The unincorporated 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 first June 30 after the
director of the department issues a certificate of authority under
subsection (5), $500,000.00. The unincorporated association is not
liable or responsible for a loss occurrence attributable to a motor
vehicle accident for a policy issued or renewed after the first
June 30 after the director of the department issues a certificate
of authority under subsection (5).
(9) For a loss occurrence attributable to a motor vehicle
accident for a policy issued or renewed after the first June 30
after the director of the department issues a certificate of
authority under subsection (5), the responsible insurer shall
retain 100% of the amount of ultimate loss sustained under personal
protection insurance coverages up to $500,000.00. The incorporated
association is responsible for 100% of all liability for ultimate
loss sustained within the scope of personal protection insurance
coverages and claims expenses in excess of $500,000.00.
(10) (3)
An insurer may withdraw from the unincorporated
association
only upon on ceasing to write insurance that provides
the security required by section 3101(1) in this state.
(11) (4)
An insurer whose membership in the unincorporated
association
has been terminated by withdrawal shall continue
continues
to be bound by the plan of operation , and, upon on
withdrawal, all unpaid premiums that have been charged to the
withdrawing
member are payable as of on
the effective date of the
withdrawal.
(12) (5)
An unsatisfied net liability to the
unincorporated
association of an insolvent member shall be assumed by and
apportioned among the remaining members of the unincorporated
association as provided in the plan of operation. The
unincorporated 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 to
the unincorporated
association.
(13) (6)
If a member of the unincorporated association 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 to the unincorporated association.
(14) (7)
The unincorporated association
shall do all of the
following on behalf of the members of the unincorporated
association:
(a) Assume 100% of all liability as provided in subsection
(2).(8) for a loss occurrence attributable to a
motor vehicle
accident for a policy issued or renewed before the first July 1
after the director of the department issues a certificate of
authority under subsection (5).
(b) Establish procedures by which members shall promptly
report to the unincorporated association each claim that, on the
basis of the injuries or damages sustained, may reasonably be
anticipated to involve the unincorporated 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 unincorporated
association of subsequent developments likely to materially affect
the interest of the unincorporated association in the claim.
(c) Maintain relevant loss and expense data relative to all
liabilities of the unincorporated association and require each
member to furnish statistics, in connection with liabilities of the
unincorporated 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
unincorporated association that the unincorporated association will
likely incur during the period for which the premium is applicable.
The
premium shall must include an amount to cover incurred but not
reported losses for the period and may be adjusted for any excess
or deficient premiums from previous periods. A premium may not be
charged under this section for policies issued or renewed after the
first June 30 after the director of the department issues a
certificate of authority under subsection (5). 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 is
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
unincorporated 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 unincorporated
association.
(f)
Receive and distribute all sums money
required by the
operation of the unincorporated 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 unincorporated association, the
unincorporated 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 unincorporated association and may
charge the cost of the adjustment to the member.
(15) An incorporated association shall do all of the
following:
(a) Assume liability for claims as provided in subsection (9).
(b) Establish procedures for the owner or registrant of a
motor vehicle that maintains the security required under section
3101(1), an agent of the owner or registrant, a claimant, or an
insurer, to report to the incorporated association each claim under
the security that on the basis of the injuries or damages sustained
reasonably may be anticipated to involve the incorporated
association.
(c) Maintain relevant loss and expense data relative to all
liabilities of the incorporated association and require insurers to
furnish statistics at the times and in the form and detail as
required by the plan of operation of the incorporated association.
(d) Before the second July 1 after the director of the
department issues a certificate of authority under subsection (5)
and before July 1 of each following year, determine the annual per-
motor-vehicle assessment to be imposed under subsection (31). The
total of all assessments imposed under subsection (31) must be
sufficient to cover the expected losses and expenses that the
incorporated association likely will incur in the period for which
the assessments are applicable. The incorporated association shall
calculate the assessment under this subdivision by dividing the
total expected losses and expenses of the incorporated association
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 must include an amount to cover incurred but not reported
losses for the period. The assessment calculated under this
subdivision 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 of the
incorporated association. The incorporated association shall
determine a separate assessment amount to be charged to an owner or
registrant of an insured historic vehicle equal to 20% of the
assessment charged for a motor vehicle other than a historic
vehicle. 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 assessments to the
incorporated association authorized under this section.
(16) (8)
In addition to other powers granted
to it by under
this section, the unincorporated association or an incorporated
association may do all of the following:
(a) Sue and be sued in the name of the association. A judgment
against
the unincorporated association shall does not
create any
direct liability against the individual members of the
unincorporated association. The unincorporated association may
provide for the indemnification of its members, and the
unincorporated association or an incorporated association may
provide
for the indemnification of the members
of the its board of
directors, of
the association, and officers, and
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 of the association,
adopt reasonable rules for the administration of the association,
enforce those rules, and delegate authority, as the board of the
association considers necessary, to assure the proper
administration and operation of the association consistent with the
plan of operation.
(e) Contract for goods and services with other persons
relating to all or a portion of the goods and services necessary
for the management and operation of the association, including, but
not limited to, independent claims management, actuarial,
investment,
and legal services. , from others within or without
this
state to assure the efficient operation of the association.All
of the following apply to a contract for goods or services between
the unincorporated association and an incorporated association:
(i) The terms must be fair and reasonable.
(ii) The charges or fees for services performed must be
reasonable.
(iii) The expenses incurred and payment received must be
allocated in conformity with customary accounting practices
consistently applied.
(iv) The books, accounts, and records of each association must
be maintained to clearly and accurately disclose the precise nature
and details of the transactions, including accounting information
as necessary to support the reasonableness of the charges or fees.
(f)
Hear and determine complaints of a company or other an
interested party concerning the operation of the association.
(g) Borrow money to accomplish the purposes of the association
or implement this section at rates of interest determined by the
association, and issue notes, bonds, certificates, other evidences
of indebtedness, or pledges. Interest and earnings on notes, bonds,
certificates, or other obligations of the association are exempt
from any taxes imposed by this state or a political subdivision of
this state. An association shall not borrow money from another
association.
(h) Take action necessary to facilitate and maintain the tax-
exempt status of the association 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 association.
(i) Invest and reinvest money of the association.
(j) Take, hold, and convey interests in property.
(k) Accept gifts, grants, loans, or other aid from another
person.
(l) (g)
Perform other acts not specifically
enumerated in this
section that are necessary or proper to accomplish the purposes of
the association or to implement this section and that are not
inconsistent with this section or the plan of operation of the
association.
(17) (9)
A board of directors of the unincorporated
association
is created, hereinafter referred to
as the board, which
shall
to be responsible for the operation of the unincorporated
association consistent with the plan of operation of the
unincorporated association and this section.
(18) (10)
The board of the
unincorporated association or an
incorporated association shall operate the association according to
the plan of operation of the association and this section. The plan
of operation of an association shall provide for all of the
following:
(a) The establishment of necessary facilities.
(b) The management and operation of the association.
(c)
Procedures For the
unincorporated association, provisions
to
be utilized used in charging premiums, including adjustments
from excess or deficient premiums from prior periods. For an
incorporated association, procedures for charging assessments,
including adjustments from excess or deficient assessments from
prior periods.
(d)
Procedures For the
unincorporated association, procedures
governing the actual payment of premiums to the unincorporated
association. For an incorporated association, procedures governing
the payment of assessments to the incorporated association.
(e)
Reimbursement by the association of each member of
individual
serving on the board by the of 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.
(19) (11)
Each The board shall of the unincorporated
association must include individuals from members of the
unincorporated
association that would contribute
a total of not
less
than 40% of the total premium calculated pursuant to under
subsection
(7)(d). (14). Each director shall be of the
unincorporated association is entitled to 1 vote. The initial term
of
office of a director shall be of
the unincorporated association
is 2 years.
(20) (12)
As part of the plan of operation of the
unincorporated association, the board of the unincorporated
association 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) (19) and
(13).
(21). Terms of the directors shall must 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 is
not appointed for a term of
more than 4 years.
(21) (13)
The board shall of the unincorporated association
must
consist of 5 directors , and the commissioner shall be
director of the department, who is an ex officio member of the
board without vote.
(22) (14)
Each director shall be appointed by the commissioner
and
The director of the
department shall appoint the directors of
the unincorporated association. A director of the unincorporated
association
shall serve until that member's director's successor is
selected and qualified. The directors of the unincorporated
association shall elect from the directors a chairperson of the
board. shall
be elected by the board. A The
director of the
department
shall fill a vacancy on the board shall
be filled by the
commissioner
of the unincorporated
association consistent with the
plan of operation.
(23) (15)
After the board is appointed, the The
board of the
unincorporated association shall meet as often as the chairperson,
the
commissioner, director of
the department, or the plan of
operation
shall require, of the
unincorporated association
requires,
or at the request of any 3 members directors of the
board.
unincorporated association. The chairperson shall retain the
right
to may vote on all issues. Four members of the board
directors of the unincorporated association constitute a quorum.
(24) The board of directors of an incorporated association
shall operate the incorporated association in accordance with the
plan of operation of the incorporated association and this section.
All of the following apply to the formation and operation of the
board of an incorporated association:
(a) The board must consist of 7 directors appointed by the
governor with the advice and consent of the senate. The governor
shall appoint the initial directors within 45 days after the
incorporated association is incorporated. An employee or officer of
an insurer is not eligible to serve as a director. The governor
shall appoint directors as follows:
(i) Two of the directors must represent insurers that provide
coverages required under section 3101(1).
(ii) One of the directors must represent health facilities or
agencies, as that term is defined in section 20106 of the public
health code, 1978 PA 368, MCL 333.20106.
(iii) One of the directors must represent individuals licensed
under article 15 of the public health code, 1978 PA 368, MCL
333.16101 to 333.18838.
(iv) Three of the directors must represent individuals who are
insured under policies that provide the security required under
section 3101(1). Of these 3 individuals:
(A) One must be an individual recommended by the senate
majority leader.
(B) One must be an individual recommended by the speaker of
the house of representatives.
(b) Of the directors 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
director shall be appointed for a term of 4 years. If there is a
vacancy on the board, the governor shall fill the vacancy in the
same manner as the original appointment for the balance of the
unexpired term. Within 60 days after the initial directors are
appointed, the director of the department shall call the first
meeting of the board. At the first meeting, the board shall elect a
chairperson from the directors of the incorporated association.
Four directors of the incorporated association constitute a quorum
for the transaction of business at a meeting. An affirmative vote
of 4 directors of the incorporated association is necessary for
official action of the board.
(c) The board shall conduct its business at a meeting 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. At least 10 days but not more than 60 days before a
meeting, the board shall provide public notice of the meeting at
its principal office and on an internet website accessible by the
public. The board shall include in the public notice of the 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
incorporated association.
(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
incorporated association'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) Directors 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.
(f) A director is not liable for any lawful action taken by
the director in the performance of duties under this section.
(25) (16)
An annual report of the operations
of the
unincorporated
association in a form and detail as may
be
determined by the board of the unincorporated association shall be
furnished to each member of the unincorporated association.
(26) An incorporated association shall have its finances
audited annually by an independent public accountant. The
incorporated association shall make the audit available to the
public and post the audit on a publicly accessible Internet website
maintained by the incorporated association. An incorporated
association shall make an annual report of the operations of the
incorporated association available to the public and post the
report on a publicly accessible Internet website maintained by the
incorporated association. By June 30 of each year after the year in
which the director of the department issues a certificate of
authority under subsection (5) to the incorporated association, the
incorporated association shall prepare a statement of the finances
of the incorporated association for the preceding calendar year to
accompany the annual report. The financial statement must contain
all of the following:
(a) The number of claims opened and closed in the year, the
amount expended on the claims, and the anticipated future costs of
the claims, with the assumptions, methodology, and data used to
make the future projections.
(b) The total number of open claims and their anticipated
future costs, the assumptions, methodology, and data used to make
the future projections, a categorical summary of claims paid, both
open and closed, and the expected future costs of claims grouped by
numeric range.
(c) The number of new claims projected for the upcoming year,
if any, their anticipated future costs, and the assumptions,
methodology, and data used to make the future projections.
(d) The current ratio of claims opened to claims closed.
(e) The average length of a claim.
(f) A statement of the current financial condition of the
incorporated association and the reasons for any deficit or surplus
in collected assessments compared to losses.
(g) A statement of the assumptions, methodology, and data used
to make revenue projections.
(h) A statement of the assumptions, methodology, and data used
to determine the incorporated association's annual assessments.
(i) A list of assets of the incorporated association listed by
category or type of asset, such as, for example, stocks, bonds, or
mutual funds, and the expected return on each asset.
(j) The total amount of the incorporated association's
discounted and undiscounted liabilities and a description and
explanation of the liabilities, including an explanation of the
association's definition of the terms "discounted" and
"undiscounted".
(k) A summary of services for which claims were paid and the
average cost for the services.
(l) Measures taken by the incorporated association, if any, to
contain costs.
(m) Measures taken by the incorporated association, if any, to
reduce any deficit reported under subdivision (f).
(27) (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 An
association shall operate
under a plan of operation of the association that is approved by
the director of the department, that is consistent with the
objectives
and provisions of this section, which shall provide and
that provides for the economical, fair, and nondiscriminatory
administration of the association and, for the unincorporated
association,
for the prompt and efficient provision
of indemnity .
If
a plan is not submitted within this 60-day period, then the
commissioner,
to members of the
unincorporated association. If an
association does not have an approved plan of operation, the
director of the department, after consultation with the board of
the association, shall formulate and place into effect a plan
consistent with this section.
(28) (18)
The A plan of operation , unless approved sooner
in
writing,
shall be of an association or
an amendment to a plan of
operation of an association that has been submitted to the director
of the department for approval is considered to meet the
requirements of this section if it is not approved or disapproved
by
written order of the commissioner director of the department
within 30 days after the date of its submission. Before disapproval
of all or any part of the proposed plan of operation, the
commissioner
director of the department shall notify the board
association in what respect the plan of operation fails to meet the
requirements
and objectives of this section. If the board
association fails to submit a revised plan of operation that meets
the requirements and objectives of this section within the 30-day
period,
the commissioner director
of the department shall enter an
order accordingly and shall immediately formulate and place into
effect a plan of operation for the association consistent with the
requirements and objectives of this section.
(29) (19)
The For the unincorporated
association, a proposed
plan of operation or amendments to the plan of operation of the
unincorporated association are subject to majority approval by the
board,
ratified ratification of
the unincorporated association by a
majority
of the membership having members
of the unincorporated
association that have a vote, with voting rights being apportioned
according
to the premiums charged in subsection (7)(d) (14)(d), and
are
subject to approval by the commissioner.director of the
department as provided in this section. For an incorporated
association, a proposed plan of operation or amendments to the plan
of operation of the incorporated association are subject to
approval by the board of the incorporated association and by the
director of the department as provided in this section. This state
is not liable for an obligation of an association, and any debt of
an association is not a debt of this state. The credit of this
state may not be loaned to an association.
(30) (20)
Upon For the unincorporated
association, on approval
by
the commissioner director
of the department and ratification by
the members of the unincorporated association of the plan of
operation
submitted, or upon on the
promulgation of a plan by the
commissioner,
director of the department, each 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 as
a condition of maintaining its authority to transact insurance in
this state.
(31) For a policy issued or renewed after the first June 30
after the director of the department issues a certificate of
authority under subsection (5), an annual catastrophic claims
assessment is imposed on the owner or registrant of a 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 assessment. The assessment imposed under this subsection is a
charge imposed by an incorporated association and is not part of an
insurer's premium. Until the second June 30 after a certificate of
authority is issued under subsection (5), the annual amount of the
catastrophic claims assessment is the initial assessment set by the
director of the department under subsection (5). After the second
June 30 after a certificate of authority is issued under subsection
(5), the annual amount of the catastrophic claims assessment shall
be equal to the per-motor-vehicle assessment determined by the
incorporated association under subsection (15)(d). The owner or
registrant shall pay the per-motor-vehicle assessment 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 required under
section 3101(1). The insurer shall collect the catastrophic claims
assessment on behalf of the incorporated association. The insurer
shall include the catastrophic claims assessment as a separate
identified charge on its policy invoice. The insurer shall collect
the assessment with the insurer's usual cycle for collection of
insurance premiums and shall promptly transmit all assessments
collected to the incorporated association on forms and in a manner
prescribed by the incorporated association and shall hold
assessments collected in trust for the incorporated association
until remitted to the association. An insurer shall treat the
failure to pay an assessment under this subsection in the same
manner as the failure to pay an insurance premium. An insurer that
receives from an incorporated association a refund of a portion of
an assessment paid because of the cancellation of the policy shall
refund that portion to the owner or registrant.
(32) (21)
The An 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 of
the
association.is an insurer.
(33) (22)
Premiums charged members by the unincorporated
association shall be recognized in the rate-making procedures for
insurance rates in the same manner that expenses and premium taxes
are recognized.
(34) (23)
The commissioner director of the department or an
authorized
representative of the commissioner director of the
department
may visit the an association
at any time and examine any
and all of the association's affairs and records relating to the
business of the association. An association shall pay expenses
incurred by the director of the department for the examination of
the association. An association is subject to fees imposed under
section 224(4) to (11) in the same manner as any other type of
entity under this act.
(35) (24)
The unincorporated association does
not have
liability
is not liable for losses occurring before July 1, 1978.
The unincorporated association is not liable for losses occurring
under policies issued or renewed after the first June 30 after the
director of the department issues a certificate of authority under
subsection (5).
(36) An incorporated association shall comply with the freedom
of information act, 1976 PA 442, MCL 15.231 to 15.246, as if the
incorporated association were a public body. A record or portion of
a record, material, data, or other information received, prepared,
used, or retained by the incorporated association in connection
with the investment of assets or of an insurer that relates to
financial or proprietary information and is considered by the
person or insurer providing the incorporated association with the
record, material, data, or information as confidential and
acknowledged by the incorporated association as confidential is not
subject to disclosure by the incorporated association. As used in
this subsection:
(a) "Financial or proprietary information" means information
that has not been publicly disseminated or that is unavailable from
other sources, the release of which might cause the person
providing the information to the incorporated association
significant competitive harm. Financial or proprietary information
includes, but is not limited to, financial performance data and
projections, financial statements, and product and market data.
(b) "Public body" means that term as defined in section 2 of
the freedom of information act, 1976 PA 442, MCL 15.232.
(37) The unincorporated association shall continue in
existence until all liabilities due to loss occurrences for which
the unincorporated association has liability under this section are
paid. On payment of the unincorporated association's final
liability under this section, the unincorporated association shall
notify the director of the department, wind up the affairs of the
unincorporated association, transmit any remaining money of the
unincorporated association to an incorporated association, and
dissolve the unincorporated association.
(38) 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 an association created
and powers conferred on an association 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 an association be exempt
from federal taxation, and it is the intent of the legislature that
an association and activities of an association 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 an association is authorized under this section to
be established and operate in a manner allowing an association 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.
(39) For purposes of this section, the date that a policy is
issued or renewed is the effective date of coverage under the
policy.
(40) (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 unincorporated association created
under subsection (1) or an incorporated association formed under
subsections (2) to (7).
(b) "Board" means the board of directors of the unincorporated
association or of an incorporated association.
(c) "Incorporated association" means an incorporated
association formed as a nonprofit association under subsections (2)
to (7).
(d) (b)
"Motor vehicle accident
policy" means a policy
providing the coverages required under section 3101(1).
(e) (c)
"Ultimate loss" means the
actual loss amounts that a
member
an insurer is obligated to pay and that are paid or payable
by
the member, insurer, and do does not include claim
expenses. An
ultimate
loss is incurred by the an
association on the date that
the loss occurs.
(f) "Unincorporated association" means the unincorporated
nonprofit association created under subsection (1) and includes the
unincorporated nonprofit association when it is known as the
Catastrophic Claims Association and the unincorporated nonprofit
association when it is known as the Michigan Legacy Claims
Association.
Sec.
3107. (1) Except as otherwise provided in subsection (2),
this section, personal protection insurance benefits are payable
for the following:
(a) Allowable expenses consisting of all reasonable charges
incurred for reasonably necessary products, services, and
accommodations for an injured person's care, recovery, or
rehabilitation.
Allowable expenses within personal protection
insurance
coverage shall not include Payment
to providers for those
products, services, and accommodations are subject to the limits in
section 3107c.
(b) Personal protection insurance benefits are not payable for
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.
(c) (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.
(d) (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) (1)(c) 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 is not be required to provide coverage
for the medical use of marihuana or for expenses related to the
medical use of marihuana.
Sec. 3107a. Subject to the provisions of section
3107(1)(b),
3107(1)(c), work loss for an injured person who is temporarily
unemployed at the time of the accident or during the period of
disability shall be based on earned income for the last month
employed full time preceding the accident.
Sec. 3107c. (1) Except as otherwise 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 333.16101 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 otherwise 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 24 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 copayment. After 30 days, payment is subject to a
copayment of 20% up to a maximum of $200.00 per month.
(3) Except as otherwise 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 an incorporated association incorporated under section
3104 may contract 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 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.
(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 that
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 and 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 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 by the amount of taxes that would have been
payable on account of income the injured person would have received
if he or she had not been injured.
(d) Damages for economic loss by a nonresident in excess of
the personal protection insurance benefits provided under section
3163(4). Damages under this subdivision are not recoverable to the
extent that benefits covering the same loss are available from
other sources, regardless of the nature or number of benefit
sources available and regardless of the nature or form of the
benefits.
(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 shall 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. 3157. 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 for like products, services, and accommodations
in cases not involving insurance.
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 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 available.
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. 3310. (1) The board of governors of the facility shall
consist of 11 governors. Seven of the governors shall be elected as
provided in the plan of operation. Four governors shall be
appointed
by the commissioner, director,
of which 2 shall represent
insurance agents subject to section 1209(1) and 2 shall represent
the
general public. Each governor appointed by the commissioner
pursuant
to director under this subsection shall serve an annual
term. The 7 elected members of the board of governors of the
facility shall be elected to serve annual terms commencing within
45 days after the annual determination of participation ratios.
Vacancies shall be filled as provided for in the plan of operation.
(2) Amendments to the plan of operation for the facility are
subject to majority approval by the board of governors and
ratification by a majority of the membership. The membership vote
shall be determined by participation ratio as defined in section
3303(e)(iii). The
facility committee shall adopt a plan of
operation
by majority vote of the committee and approved and
ratified
amendments shall submit it be submitted to the
commissioner
director for his or her approval. If the commissioner
director
finds that the amendments to the plan meets meet the
requirements
of this chapter, he or she shall approve it. them. If
the
commissioner director finds that the amendments to the plan
fails
fail to meet the requirements of this chapter, he or she
shall
state in what respects the plan is amendments are deficient
and
shall afford the facility committee board of governors 10 days
within
which to correct the deficiency. If the commissioner
director
and the facility committee board of governors fail to
agree
that the provisions of corrected
amendments to the plan so
submitted meet the requirements of this chapter, either party to
the controversy may submit the issue to the circuit court for
Ingham
county County for a determination. If the commissioner
director fails to render a written decision on the amendments to
the
plan of operation within 30 days after
receipt of the plan,
amendments,
the plan amendments shall be considered approved.
(3)
Amendments to the plan of operation shall be subject to
majority
approval by the board of governors and ratified by
majority
of the membership vote. The membership vote shall be
determined
as defined in section 3303(e)(iii).
Amendments to the
plan
of operation shall be subject to the approval of the
commissioner,
as provided in subsection (2).
(3) (4)
Every insurer authorized to write
automobile insurance
in this state shall adhere to the plan of operation.
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, 2020, 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 March 1, 2016, 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.
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 this 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 The authority shall
segregate money received
pursuant
to under subsection (1), and all other money received by
the
authority, shall be segregated and placed place the money 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 The authority shall
expend 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 The authority shall
use 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
authority shall develop
performance metrics that are consistent, controllable, measurable,
and attainable. The authority 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 is 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 consists 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 authorized insurers that provide automobile insurance 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 authorized insurers that provide automobile
insurance in this state.
(7) The governor shall appoint the members of the board
representing law enforcement agencies other than the department of
state police. In appointing the members, the governor shall solicit
input from various law enforcement associations in this state.
(8) The governor shall appoint the member of the board
representing prosecuting attorneys. In appointing the member, the
governor shall solicit input from the Prosecuting Attorneys
Association of Michigan.
(9) The governor shall appoint the member of the board
representing the general public. 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, 2021.
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
to the contrary, 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, 2021, 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, 2021, 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,
2016 to December 31, 2020.
(2) Before April 1 of each year from 2016 to 2020, 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 established under 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) must 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 authority shall submit the report to the
legislature required by this section to the senate and house of
representatives standing committees with primary jurisdiction over
insurance issues and the director.
Enacting section 1. Except as provided in enacting section 2,
this amendatory act takes effect 90 days after the date it is
enacted into law.
Enacting section 2. 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 chapter 63 of the insurance code of 1956, 1956 PA 218, as
added by this amendatory act, take effect January 1, 2016.
Enacting section 3. This amendatory act does not take effect
unless Senate Bill No. 249
of the 98th Legislature is enacted into law.
