Bill Text: MI SB0510 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Insurance; no-fault; eligibility for personal injury protection benefits; modify, and exempt certain individuals. Amends secs. 3021, 3101, 3109 & 3113 of 1956 PA 218 (MCL 500.3021 et seq.).

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2013-09-18 - Referred To Committee On Insurance [SB0510 Detail]

Download: Michigan-2013-SB0510-Introduced.html

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SENATE BILL No. 510

 

 

September 18, 2013, Introduced by Senators JONES, HUNE, COLBECK, MARLEAU, ROCCA and BOOHER and referred to the Committee on Insurance.

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 3021, 3101, 3109, and 3113 (MCL 500.3021,

 

500.3101, 500.3109, and 500.3113), section 3101 as amended by 2008

 

PA 241, section 3109 as amended by 2012 PA 454, and section 3113 as

 

amended by 1986 PA 93.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3021. No Except as otherwise provided in section 3101, an

 

insurer shall not cancel a policy including any class of motor

 

vehicle coverage, shall be cancelled by the insurer, nor shall the

 

insurer refuse to issue a renewal policy, nor shall the premium for

 

any such policy be increased or increase a premium for a policy

 

solely because an insured has reached the age of 65 years, if the

 

insured still has a valid Michigan motor vehicle operator's

 

license.

 

     Sec. 3101. (1) The Except as otherwise provided in this

 

subsection, an 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, property protection

 

insurance, and residual liability insurance. An owner or registrant

 

of a motor vehicle required to be registered in this state who is

 

an individual 65 years of age or older is not required to maintain

 

security for benefits under personal protection insurance. Security

 

shall only be required to be in effect during the period the motor

 

vehicle is driven or moved upon a highway. Notwithstanding any

 

other provision in this act, an insurer that has issued an

 

automobile insurance policy on a motor vehicle that is not driven

 

or moved upon a highway may allow the insured owner or registrant

 

of the motor vehicle to delete a portion of the coverages under the

 

policy and maintain the comprehensive coverage portion of the

 

policy in effect.

 

     (2) As used in this chapter:

 

     (a) "Automobile insurance" means that term as defined in

 

section 2102.

 

     (b) "Highway" means that term as defined in section 20 of the

 

Michigan vehicle code, 1949 PA 300, MCL 257.20.

 

     (c) "Motorcycle" means a vehicle having that has a saddle or

 

seat for the use of the rider, is designed to travel on not more

 

than 3 wheels in contact with the ground, which and is equipped

 

with a motor that exceeds 50 cubic centimeters piston displacement.

 

The wheels on any attachment to the vehicle shall not be considered

 

as wheels in contact with the ground. Motorcycle does not include a

 

moped, as defined in section 32b of the Michigan vehicle code, 1949

 

PA 300, MCL 257.32b. Motorcycle does not include an ORV.

 

     (d) "Motorcycle accident" means a loss involving that involves

 

the ownership, operation, maintenance, or use of a motorcycle as a

 

motorcycle, but not involving does not involve the ownership,

 

operation, maintenance, or use of a motor vehicle as a motor

 

vehicle.

 

     (e) "Motor vehicle" means a vehicle, including a trailer,

 

operated or designed for operation upon a public highway by power

 

other than muscular power which that has more than 2 wheels. Motor

 

vehicle does not include a motorcycle or a moped, as defined in

 

section 32b of the Michigan vehicle code, 1949 PA 300, MCL 257.32b.

 

Motor vehicle does not include a farm tractor or other implement of

 

husbandry which that is not subject to the registration

 

requirements of the Michigan vehicle code pursuant to under section

 

216 of the Michigan vehicle code, 1949 PA 300, MCL 257.216. Motor

 

vehicle does not include an ORV.

 

     (f) "Motor vehicle accident" means a loss involving 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.

 

     (g) "ORV" means a motor-driven recreation vehicle designed for

 

off-road use and capable of cross-country travel without benefit of

 

road or trail, on or immediately over land, snow, ice, marsh,

 

swampland, or other natural terrain. ORV includes, but is not

 

limited to, a multitrack or multiwheel drive vehicle, a motorcycle

 

or related 2-wheel, 3-wheel, or 4-wheel vehicle, an amphibious

 

machine, a ground effect air cushion vehicle, an ATV as defined in

 

section 81101 of the natural resources and environmental protection

 

act, 1994 PA 451, MCL 324.81101, or and any other means of

 

transportation deriving that derives motive power from a source

 

other than muscle or wind. ORV does not include a vehicle described

 

in this subdivision that is registered for use upon a public

 

highway and has the security described in section 3101 or 3103 in

 

effect.

 

     (h) "Owner" means any of the following:

 

     (i) A person renting a motor vehicle or having the use thereof

 

of a motor vehicle, under a lease or otherwise, for a period that

 

is greater than 30 days.

 

     (ii) A person who holds the legal title to a vehicle, other

 

than a person engaged in the business of leasing motor vehicles who

 

is the lessor of a motor vehicle pursuant to under a lease

 

providing for the use of the motor vehicle by the lessee for a

 

period that is greater than 30 days.

 

     (iii) A person who has the immediate right of possession of a

 

motor vehicle under an installment sale contract.

 

     (i) "Registrant" does not include a person engaged in the

 

business of leasing motor vehicles who is the lessor of a motor

 

vehicle pursuant to under a lease providing for the use of the

 

motor vehicle by the lessee for a period that is greater than 30

 

days.

 

     (3) Security may be provided under a policy issued by an

 

insurer duly authorized to transact business in this state which

 

that affords insurance for the payment of benefits described in

 

subsection subsections (1) and (5). A policy of insurance

 

represented or sold as providing security is considered to provide

 

insurance for the payment of the benefits.

 

     (4) Security required by subsection (1) may be provided by any

 

other method approved by the secretary of state as affording

 

security equivalent to that afforded by a policy of insurance, if

 

proof of the security is filed and continuously maintained with the

 

secretary of state throughout the period the motor vehicle is

 

driven or moved upon a highway. The person filing the security has

 

all the obligations and rights of an insurer under this chapter.

 

When the context permits, "insurer" as used in this chapter,

 

includes any person filing the security as provided in this

 

section.

 

     (5) An insurer transacting insurance in this state that

 

affords coverage to provide security required under subsection (1)

 

shall offer to an owner or registrant of a motor vehicle required

 

to be registered in this state who is an individual 65 years of age

 

or older security for the payment of personal protection insurance

 

benefits payable only to the owner or registrant. An insurer

 

providing personal protection insurance under this subsection may

 

offer, and provide for in the contract of insurance, deductibles,

 

increments of coverage, and provisions for the subtraction of other

 

benefits provided or required to be provided under the laws of any

 

state or the federal government.

 

     Sec. 3109. (1) Benefits provided or required to be provided

 

under the laws of any state or the federal government shall be

 

subtracted from the personal protection insurance benefits

 

otherwise payable for the injury under this chapter.

 

     (2) An injured person is a natural person suffering accidental

 

bodily injury.

 

     (3) An insurer providing personal protection insurance

 

benefits under this chapter may offer, at appropriately reduced

 

premium rates, a deductible of a specified dollar amount. This

 

deductible may be applicable to all or any specified types of

 

personal protection insurance benefits, but shall apply only to

 

benefits payable to the person named in the policy, his or her

 

spouse, and any relative of either domiciled in the same household.

 

This subsection does not apply to personal protection insurance

 

benefits offered under section 3101(5).

 

     Sec. 3113. A person is not entitled to be paid personal

 

protection insurance benefits for accidental bodily injury if at

 

the time of the accident any of the following circumstances

 

existed:

 

     (a) The person was using a motor vehicle or motorcycle which

 

that he or she had taken unlawfully, unless the person reasonably

 

believed that he or she was entitled to take and use the vehicle.

 

     (b) The person was the owner or registrant of a motor vehicle

 

or motorcycle involved in the accident with respect to which the

 

security required by section 3101 or 3103 was not in effect.

 

     (c) The person was not a resident of this state, was an

 

occupant of a motor vehicle or motorcycle not registered in this

 

state, and was not insured by an insurer which that has filed a

 

certification in compliance with section 3163.

 

     (d) The person was 65 years of age or older and was the owner

 

or registrant of a motor vehicle with respect to which the security

 

for the payment of personal protection insurance benefits to the

 

person was not in effect.