Bill Text: MI SB1029 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Insurance; no-fault; damages to motor vehicles; allow tort recovery for. Amends secs. 3037 & 3135 of 1956 PA 218 (MCL 500.3037 & 500.3135).

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Introduced - Dead) 2009-12-10 - Referred To Committee On Economic Development And Regulatory Reform [SB1029 Detail]

Download: Michigan-2009-SB1029-Introduced.html

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SENATE BILL No. 1029

 

 

December 10, 2009, Introduced by Senators ANDERSON, BRATER, HUNTER, CLARKE, JACOBS, THOMAS, CLARK-COLEMAN, SCOTT, CHERRY and OLSHOVE and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 3037 and 3135 (MCL 500.3037 and 500.3135),

 

section 3037 as amended by 1980 PA 461 and section 3135 as amended

 

by 2002 PA 697.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3037. (1) At the time a new applicant for the insurance

 

required by section 3101 for a private passenger nonfleet

 

automobile makes an initial written application to the insurer, an

 

insurer shall offer both of the following collision coverages to

 

the applicant:

 

     (a) Limited collision coverage which shall pay for collision

 

damage to the insured vehicle without a deductible amount when the

 

operator of the vehicle is not substantially at fault in the

 

accident from which the damage arose.

 

     (b) Broad form collision coverage which shall pay for

 

collision damage to the insured vehicle regardless of fault, with

 

deductibles in such amounts as may be approved by the commissioner,

 

which deductibles shall be waived if the operator of the vehicle is

 

not substantially at fault in the accident from which the damage

 

arose.

 

     (2) In addition to the coverages offered pursuant to

 

subsection (1), standard and limited collision coverage may be

 

offered with deductibles as approved by the commissioner.

 

     (3) Where the applicant is required by the insurer to sign the

 

written application form described in subsection (1), if the

 

applicant chooses to reject both of the collision coverages, or

 

limited collision without a deductible, offered under subsection

 

(1), the rejection shall be made in writing either on a separate

 

form or as part of the application, or some combination thereof, as

 

approved by the commissioner. The rejection statement shall inform

 

the applicant of his or her rights in the event of damage to if the

 

insured vehicle is damaged under the alternative coverage option

 

selected.

 

     (4) In the case of For a written application made by mail, if

 

the applicant fails to sign or return a written rejection statement

 

as required by subsection (3), the requirements of subsection (3)

 

shall be considered to have been are satisfied with respect to the

 

insurer if all of the following occur:

 

     (a) The application provides the applicant with an opportunity

 

to select the coverages required to be offered under subsection

 

(1).

 

     (b) The applicant is requested to sign the rejection

 

statement, either as part of the application or as a separate form

 

issued with the application, if the applicant fails to select

 

either of the coverages specified in subsection (1).

 

     (c) The applicant signed the application as otherwise required

 

by the insurer.

 

     (5) At the time of the initial written application specified

 

in subsection (1), an agent or insurer shall provide the applicant

 

with a written explanation of collision coverage options in easily

 

understandable language, if that information is not contained in

 

the application form.

 

     (6) At least annually in conjunction with the renewal of a

 

private passenger nonfleet automobile insurance policy, or at the

 

time of an addition, deletion, or substitution of a vehicle under

 

an existing policy, other than a group policy, an insurer shall

 

inform the policyholder, on a form approved by the commissioner, of

 

all of the following:

 

     (a) The current status of collision coverage, if any, for the

 

vehicle or vehicles affected by the renewal or change and the

 

rights of the insured in the event of damages to if the insured

 

vehicle is damaged under the current coverage.

 

     (b) The collision coverages available under the policy and the

 

rights of the insured in the event of damage to if the insured

 

vehicle is damaged under each collision option.

 

     (c) Procedures for the policyholder to follow if he or she

 

wishes to change the current collision coverage.

 

     (7) An insurer that pays collision damage under subsection (1)

 

or (2) on behalf of a party who was not substantially at fault in

 

the accident is subrogated to that party's right to recover those

 

damages under section 3135.

 

     (8) (7) As used in this section:

 

     (a) "Collision damage" does not include losses customarily

 

insured under comprehensive coverages.

 

     (b) "Substantially at fault" means a person's action or

 

inaction was more than 50% of the cause of the accident.

 

     (8) This section shall take effect March 1, 1980.

 

     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 an 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 as to 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 $500.00 to motor vehicles. , to the extent

 

that the damages are not covered by insurance. An action for

 

damages pursuant to this subdivision shall be conducted in

 

compliance with subsection (4).

 

     (4) In an action for damages pursuant to 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 shall not be a component of residual liability,

 

as prescribed in section 3131, for which maintenance of security is

 

required by this act.

 

     (5) Actions under subsection (3)(e) 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.

 

     (6) A decision of a court made pursuant to subsection (3)(e)

 

is not res judicata in any proceeding to determine any other

 

liability arising from the same circumstances as gave rise to the

 

action brought pursuant to subsection (3)(e).

 

     (7) 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.