HOUSE BILL No. 4936

 

September 13, 2011, Introduced by Rep. Lund and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 3101, 3104, 3107, 3113, 3114, 3115, 3135,

 

3157, 3163, and 3172 (MCL 500.3101, 500.3104, 500.3107, 500.3113,

 

500.3114, 500.3115, 500.3135, 500.3157, 500.3163, and 500.3172),

 

section 3101 as amended by 2008 PA 241, section 3104 as amended by

 

2002 PA 662, section 3107 as amended by 1991 PA 191, section 3113

 

as amended by 1986 PA 93, section 3114 as amended by 2002 PA 38,

 

sections 3135 and 3163 as amended by 2002 PA 697, and section 3172

 

as amended by 1984 PA 426, and by adding sections 1245, 3107c, and

 

3178.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1245. (1) An insurance producer and an agency and their

 

authorized representatives and employees involved in the sale or

 


purchase of personal protection insurance benefits under section

 

3107 are not liable for damages arising from the loss or inadequacy

 

of personal protection insurance benefits and do not have any other

 

liability for damages caused by, arising out of, or related to any

 

actual or alleged act, error, or omission concerning the choice of

 

personal protection insurance benefit amounts under section 3107.

 

     (2) As used in this section, "agency" means that term as

 

defined in section 1243.

 

     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 , in an

 

amount not less than that required under section 3107(1)(a)(i) and

 

property protection insurance , and residual liability insurance in

 

an amount not less than that required under section 3009. 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 a saddle or seat for

 

the use of the rider, designed to travel on not more than 3 wheels

 

in contact with the ground, which 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 the

 

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

 

motorcycle, but not involving 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 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 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 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 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 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 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 (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 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.

 

     Sec. 3104. (1) An unincorporated, nonprofit association to be

 

known as the catastrophic claims association , hereinafter referred

 

to as the association, is created. Each insurer engaged in writing

 

insurance coverages that provide the security required by section

 

3101(1) within this state, as a condition of its authority to

 

transact insurance in this state, shall be a member of the

 

association and shall be bound by the plan of operation of the

 

association. Each insurer engaged in writing insurance coverages

 

that provide the security required by section 3103(1) within this

 

state, as a condition of its authority to transact insurance in

 


this state, shall be considered a member of the association, but

 

only for purposes of premiums under subsection (7)(d). Except as

 

expressly provided in this section, the association 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) The All of the following apply to the amount of ultimate

 

loss sustained under personal protection insurance coverages:

 

     (a) For loss occurrences attributable to a motor vehicle

 

accident for policies issued or renewed before July 1, 2012, the

 

association shall provide, payable from the MCCA account under

 

subsection (25)(a), 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:

 

     (i) (a) For a motor vehicle accident policy issued or renewed

 

before July 1, 2002, $250,000.00.

 

     (ii) (b) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2002 to June 30, 2003, $300,000.00.

 

     (iii) (c) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2003 to June 30, 2004, $325,000.00.

 

     (iv) (d) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2004 to June 30, 2005, $350,000.00.

 

     (v) (e) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2005 to June 30, 2006, $375,000.00.

 

     (vi) (f) For a motor vehicle accident policy issued or renewed

 


during the period July 1, 2006 to June 30, 2007, $400,000.00.

 

     (vii) (g) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2007 to June 30, 2008, $420,000.00.

 

     (viii) (h) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2008 to June 30, 2009, $440,000.00.

 

     (ix) (i) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2009 to June 30, 2010, $460,000.00.

 

     (x) (j) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2010 to June 30, 2011, $480,000.00.

 

     (xi) (k) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2011 to June 30, 2013 2012, $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.

 

     (b) For loss occurrences attributable to a motor vehicle

 

accident for policies issued or renewed on or after July 1, 2012,

 

each member shall retain 100% of the amount of ultimate loss

 

sustained under personal protection insurance coverages up to

 

$500,000.00 in each loss occurrence. For an ultimate loss of

 

$500,000.00 to $1,000,000.00, the association shall provide,

 

payable from the excess PIP account under subsection (25)(b), and

 

each member shall accept, indemnification for 90% of the amount of

 

ultimate loss sustained under personal protection insurance

 


coverages. For an ultimate loss in excess of $1,000,000.00, the

 

association shall provide, payable from the excess PIP account

 

under subsection (25)(b), and each member shall accept,

 

indemnification for 100% of the amount of ultimate loss sustained

 

under personal protection insurance coverages.

 

     (3) An insurer may withdraw from the association only upon

 

ceasing to write insurance that provides the security required by

 

section 3101(1) in this state.

 

     (4) An insurer whose membership in the association has been

 

terminated by withdrawal shall continue to be bound by the plan of

 

operation, and upon withdrawal , all unpaid premiums that have been

 

charged to the withdrawing member are payable as of the effective

 

date of the withdrawal.

 

     (5) An unsatisfied net liability to the association of an

 

insolvent member shall be assumed by and apportioned among the

 

remaining members of the association as provided in the plan of

 

operation. The 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 association.

 

     (6) If a member 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.

 

     (7) The association shall do all of the following on behalf of

 

the members of the association:

 

     (a) Assume 100% of all liability as provided in subsection

 


(2).

 

     (b) Establish procedures by which members shall promptly

 

report to the association each claim that, on the basis of the

 

injuries or damages sustained, may reasonably be anticipated to

 

involve the 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 association of subsequent developments likely to

 

materially affect the interest of the association in the claim.

 

     (c) Maintain relevant loss and expense data relative to all

 

liabilities of the association and require each member to furnish

 

statistics, in connection with liabilities of the 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

 

for the MCCA account under subsection (25)(a) and a premium for the

 

excess PIP account under subsection (25)(b). Each premium shall be

 

sufficient to cover the expected losses and expenses of the

 

association that the association will likely incur during the

 

period for which the premium is applicable for each account. The

 

Each premium shall 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. 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

 

premium for the excess PIP account shall be adjusted to reflect the

 

amount of coverage selected by each member's insureds under section

 

3107. The average premium per car shall be 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

 

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 association.

 


     (f) Receive and distribute all sums money required by the

 

operation of the 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 association, the 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

 

association and may charge the cost of the adjustment to the

 

member.

 

     (8) In addition to other powers granted to it by this section,

 

the association may do all of the following:

 

     (a) Sue and be sued in the name of the association. A judgment

 

against the association shall not create any direct liability

 

against the individual members of the association. The association

 

may provide for the indemnification of its members, members of the

 

board of directors of the association, and officers, 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.

 

     (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, adopt reasonable rules

 

for the administration of the association, enforce those rules, and

 


delegate authority, as the board considers necessary to assure the

 

proper administration and operation of the association consistent

 

with the plan of operation.

 

     (e) Contract for goods and services, including independent

 

claims management, actuarial, investment, and legal services, from

 

others within or without this state to assure the efficient

 

operation of the association.

 

     (f) Hear and determine complaints of a company or other

 

interested party concerning the operation of the association.

 

     (g) Perform other acts not specifically enumerated in this

 

section that are necessary or proper to accomplish the purposes of

 

the association and that are not inconsistent with this section or

 

the plan of operation.

 

     (9) A board of directors is created , hereinafter referred to

 

as the board, which shall be that is responsible for the operation

 

of the association consistent with the plan of operation and this

 

section.

 

     (10) The plan of operation shall provide for all of the

 

following:

 

     (a) The establishment of necessary facilities.

 

     (b) The management and operation of the association.

 

     (c) Procedures to be utilized in charging premiums, including

 

adjustments from excess or deficient premiums from prior periods.

 

     (d) Procedures governing the actual payment of premiums to the

 

association.

 

     (e) Reimbursement of each member of the board by 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.

 

     (11) Each board shall include members that would contribute a

 

total of not less than 40% of the total premium premiums calculated

 

pursuant to subsection (7)(d). Each director shall be is entitled

 

to 1 vote. The initial term of office of a director shall be is 2

 

years.

 

     (12) As part of the plan of operation, the board 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) and (13). Terms of the directors

 

shall 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 a

 

term of more than 4 years.

 

     (13) The board shall consist of 5 directors, and the

 

commissioner shall be an ex officio member of the board without

 

vote.

 

     (14) Each director shall be appointed by the commissioner and

 

shall serve until that member's successor is selected and

 

qualified. The chairperson of the board shall be elected by the

 

board. A vacancy on the board shall be filled by the commissioner

 

consistent with the plan of operation.

 

     (15) After the board is appointed, the board shall meet as

 

often as the chairperson, the commissioner, or the plan of

 

operation shall require, or at the request of any 3 members of the

 


board. The chairperson shall retain the right to vote on all

 

issues. Four members of the board constitute a quorum.

 

     (16) An annual report of the operations of the association in

 

a form and detail as may be determined by the board shall be

 

furnished to each member.

 

     (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 plan of operation consistent with the

 

objectives and provisions of this section, which shall provide for

 

the economical, fair, and nondiscriminatory administration of the

 

association and for the prompt and efficient provision of

 

indemnity. If a plan is not submitted within this 60-day period,

 

then the commissioner, after consultation with the board, shall

 

formulate and place into effect a plan consistent with this

 

section.

 

     (18) The plan of operation, unless approved sooner in writing,

 

shall be considered to meet the requirements of this section if it

 

is not disapproved by written order of the commissioner within 30

 

days after the date of its submission. Before disapproval of all or

 

any part of the proposed plan of operation, the commissioner shall

 

notify the board in what respect the plan of operation fails to

 

meet the requirements and objectives of this section. If the board

 

fails to submit a revised plan of operation that meets the

 

requirements and objectives of this section within the 30-day

 

period, the commissioner shall enter an order accordingly and shall

 

immediately formulate and place into effect a plan consistent with

 

the requirements and objectives of this section.

 


     (19) The proposed plan of operation or amendments to the plan

 

of operation are subject to majority approval by the board,

 

ratified by a majority of the membership having a vote, with voting

 

rights being apportioned according to the premiums charged in

 

subsection (7)(d), and are subject to approval by the commissioner.

 

     (20) Upon approval by the commissioner and ratification by the

 

members of the plan submitted, or upon the promulgation of a plan

 

by the commissioner, 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.

 

     (21) The association is subject to all the reporting, loss

 

reserve, and investment requirements of the commissioner to the

 

same extent as would is a member of the association.

 

     (22) Premiums charged members by the association shall be

 

recognized in the rate-making procedures for insurance rates in the

 

same manner that expenses and premium taxes are recognized.

 

     (23) The commissioner or an authorized representative of the

 

commissioner may visit the association at any time and examine any

 

and all the association's affairs.

 

     (24) The association does not have liability for losses

 

occurring before July 1, 1978.

 

     (25) The association shall maintain the following 2 separate

 

accounts out of which members shall be indemnified for ultimate

 

loss:

 

     (a) An MCCA account to indemnify for loss occurrences

 


attributable to a motor vehicle accident that occurs before July 1,

 

2012.

 

     (b) An excess PIP account to indemnify for loss occurrences

 

attributable to a motor vehicle accident that occurs on or after

 

July 1, 2012.

 

     (26) Each account under subsection (25) shall be self-

 

supporting, and assets or liabilities shall not be transferred

 

between the accounts.

 

     (27) (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 catastrophic claims association

 

created in subsection (1).

 

     (b) "Board" means the board of directors created in subsection

 

(9).

 

     (c) (b) "Motor vehicle accident policy" means a policy

 

providing the coverages required under section 3101(1).

 

     (d) (c) "Ultimate loss" means the actual loss amounts that a

 

member is obligated to pay and that are paid or payable by the

 

member, and do does not include claim expenses. An ultimate loss is

 

incurred by the association on the date that the loss occurs.

 

     Sec. 3107. (1) Except as provided in subsection (2), personal

 


Personal protection insurance benefits are payable for the

 

following:

 

     (a) Allowable expenses consisting of all reasonable charges as

 

provided in subparagraph (i), (ii), (iii), or (iv) 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 charges for a hospital room in excess of a reasonable and

 

customary charge for semiprivate accommodations except if the

 

injured person requires special or intensive care, or for funeral

 

and burial expenses in the amount set forth in the policy which

 

shall not be less than $1,750.00 or more than $5,000.00. Any change

 

in a limit selected under subparagraph (i), (ii), (iii), or (iv)

 

applies only to benefits payable for an accident that occurs on or

 

after the date of the change in the limit. An insurer shall provide

 

the following coverages, and an insured shall select 1 of the

 

following coverages, which shall apply to the insured named in the

 

policy, the insured's spouse, and any relative of either domiciled

 

in the same household:

 

     (i) Coverage for allowable expenses consisting of all

 

reasonable charges incurred up to a maximum of $250,000.00 for

 

reasonably necessary products, services, and accommodations for an

 

injured person's care, recovery, or rehabilitation.

 

     (ii) Coverage for allowable expenses consisting of all

 

reasonable charges incurred up to a maximum of $500,000.00 for

 

reasonably necessary products, services, and accommodations for an

 

injured person's care, recovery, or rehabilitation.

 


     (iii) Coverage for allowable expenses consisting of all

 

reasonable charges incurred up to a maximum of $1,000,000.00 for

 

reasonably necessary products, services, and accommodations for an

 

injured person's care, recovery, or rehabilitation.

 

     (iv) Coverage for allowable expenses consisting of all

 

reasonable charges incurred up to a maximum of $5,000,000.00 for

 

reasonably necessary products, services, and accommodations for an

 

injured person's care, recovery, or rehabilitation.

 

     (b) Work Except as provided in subsection (2), 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. Beginning March 30, 1973, 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 $1,000.00, which maximum shall apply pro

 

rata to any lesser period of work loss. Beginning October 1, 1974,

 

the maximum shall be adjusted annually to reflect changes in the

 

cost of living under rules prescribed by the commissioner 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.

 

     (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) 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) 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.

 

     (3) The following apply to subsection (1)(a):

 

     (a) If an insured fails to select 1 of the personal protection

 

coverage limits, an insurer shall provide coverage in the amount

 

set forth in subsection (1)(a)(i).

 

     (b) The same personal protection coverage limits apply to all

 

motor vehicles insured under the same policy.

 

     (c) Coverage limits are provided on a per individual per loss

 

occurrence basis. Coverage applies only to benefits payable to the

 

insured named in the policy, the insured's spouse, and any relative

 

of either domiciled in the same household.

 

     (d) A person who is not an insured named in a policy, not the

 


insured's spouse, and not a relative of either domiciled in the

 

same household is entitled only to coverage in the limit set forth

 

in subsection (1)(a)(i). Personal protection insurance benefits

 

payable under this subdivision are not payable to the extent that

 

the benefits covering the same loss are available from other

 

sources, regardless of the nature and number of benefit sources

 

available and regardless of the nature or form of the benefits.

 

     (e) Regardless of the number of motor vehicles insured or

 

insurers providing security in accordance with this chapter, or the

 

provisions of any other law providing for direct benefits without

 

regard to fault for motor or any other vehicle accidents, a person

 

shall not recover duplicate benefits for the same expenses or

 

losses incurred.

 

     (f) If eligible under section 3163, personal protection

 

insurance benefits are limited to the limit set forth in section

 

3163 for accidents occurring in this state if the injured person is

 

a nonresident of this state and the injured person's benefits are

 

payable under a policy delivered outside of this state.

 

     (g) Personal protection insurance benefits are not payable to

 

a nonresident injured in an accident occurring outside of this

 

state to the extent that benefits covering the same loss are

 

available from other sources, regardless of the nature and number

 

of benefit sources available and regardless of the nature or form

 

of the benefits. If personal protection insurance benefits are

 

payable to a nonresident under this subdivision, the benefits are

 

limited to the limit set forth in subsection (1)(a)(i) per

 

individual per loss occurrence.

 


     Sec. 3107c. (1) Allowable expenses under section 3107(1)(a) do

 

not include charges for a hospital room in excess of a reasonable

 

and customary charge for semiprivate accommodations, unless the

 

injured person requires special or intensive care, or charges for

 

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.

 

     (2) All of the following apply to allowable expenses under

 

section 3107(1)(a) for attendant care or nursing services provided

 

in the injured person's home:

 

     (a) Payment is limited to a total of 56 hours per week for

 

services performed by 1 or more individuals who are not certified,

 

registered, or licensed to render the attendant care or nursing

 

services under article 15 of the public health code, 1978 PA 368,

 

MCL 333.16101 to 333.18838.

 

     (b) Payment for services performed by an individual who is not

 

certified, registered, or licensed to render the attendant care or

 

nursing services under article 15 of the public health code, 1978

 

PA 368, MCL 333.16101 to 333.18838, shall be $11.00 per hour for

 

basic care or $17.00 per hour for skilled care. Beginning January

 

1, 2013, the amounts in this subdivision shall be adjusted annually

 

to reflect changes in the cost of living under rules prescribed by

 

the commissioner in the same manner as the maximum under section

 

3107(1)(b) is adjusted. Any changes in the amounts apply only to

 

services rendered after the effective date of the changes.

 

     (3) As used in this section:

 

     (a) "Basic care" means any of the following:

 


     (i) Providing personal care services, including, but not

 

limited to, bathing, shampooing, skin care, oral hygiene, shaving

 

male patients, catheter care, and toileting assistance, including

 

urinal and bedpan assistance.

 

     (ii) Measuring and documenting vital signs.

 

     (iii) Providing or assisting with exercise, ambulation, or

 

positioning as directed by a nurse or therapist, including

 

ambulation with or without assistive devices, basic range of motion

 

both passive and active, light pivot transfers, and assisting from

 

bed, chair, or commode.

 

     (iv) Providing environmental and homemaking services, including

 

bed-making whether occupied or unoccupied, light housekeeping to

 

maintain a healthy environment, laundering of bedding and clothing,

 

shopping for groceries, and transportation as necessary.

 

     (v) Assisting with self-administered medications.

 

     (b) "Skilled care" means providing basic care services and any

 

of the following:

 

     (i) Performing intermittent straight catheterization, catheter

 

perineal care, and colostomy care as directed.

 

     (ii) Performing a bowel program under the direction of a

 

registered nurse.

 

     (iii) Performing tube feedings and simple wound care under the

 

direction of a registered nurse.

 

     (iv) Performing full 1-person transfers and transfers using a

 

patient lift or hoist.

 

     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 an operator of or passenger on a motorcycle

 

who was not wearing on his or her head a crash helmet that conformed

 

with the requirements of section 658(4) of the Michigan vehicle code,

 

1949 PA 300, MCL 257.658.

 

     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 described in

 

section 3107(1), 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. The coverage for

 

allowable expenses for 2 or more motor vehicles under 1 policy or

 

for 2 or more policies shall not be added together, combined, or

 

stacked to determine the limit of insurance coverage available for

 

each injured person covered under the policy.

 

     (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 in the following order of

 

priority:

 

     (a) From the insurer of the furnished vehicle.

 

     (b) From his or her own policy, from his or her spouse's

 

policy, or from the policy of a relative of either the person or

 

his or her spouse domiciled in the same household.

 

     (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 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) An injured person claiming personal protection insurance

 

benefits under subsection (5) is limited to reasonable charges

 

incurred up to a maximum of $250,000.00 for reasonable necessary

 

products, services, and accommodations for his or her care,

 

recovery, or rehabilitation.

 

     (7) (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 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. 3115. (1) Except as provided in subsection (1) of section

 

3114 3114(1), a person suffering accidental bodily injury while not

 

an occupant of a motor vehicle shall claim personal protection

 

insurance benefits from insurers in the following order of

 

priority:

 

     (a) Insurers of owners or registrants of motor vehicles

 

involved in the accident.

 

     (b) Insurers of operators of motor vehicles involved in the

 

accident.

 

     (2) When The following apply if 2 or more insurers are in the

 


same order of priority to provide personal protection insurance

 

benefits:

 

     (a) If the coverages for allowable expenses in the policies

 

are the same, an insurer paying benefits due is entitled to partial

 

recoupment from the other insurers in the same order of priority,

 

together with a reasonable amount of partial recoupment of the

 

expense of processing the claim, in order to accomplish equitable

 

distribution of the loss among such insurers.

 

     (b) If the coverages for allowable expenses in the policies

 

are not the same, each insurer shall pay the ratio of its limit of

 

allowable expense coverage to the total allowable expense coverage

 

available under all of the policies.

 

     (3) A limit upon the amount of personal protection insurance

 

benefits available because of accidental bodily injury to 1 person

 

arising from 1 motor vehicle accident shall be determined without

 

regard to the number of policies applicable to the accident.

 

     (4) The limit of personal protection insurance benefits

 

available for 2 or more motor vehicles under 1 policy or for 2 or

 

more policies shall not be added together, combined, or stacked to

 

determine the limit of insurance coverage available for each

 

injured person covered under the policy.

 

     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 Except as otherwise provided in this section, 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. However, an operator of or

 

passenger on a motorcycle who was not wearing on his or her head a

 

crash helmet that conformed with the requirements of section 658(4)

 

of the Michigan vehicle code, 1949 PA 300, MCL 257.658, shall be

 

considered to be not less than 35% comparatively 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), and (7) to (13).

 

     (c) Damages for allowable expenses, work loss, and survivor's

 

loss as defined described in sections 3107 to 3110 in excess of the

 

daily, monthly, and 3-year limitations contained in those sections.

 

However, a person who was the operator of or passenger on a

 

motorcycle who was not wearing on his or her head a crash helmet

 

that conformed with the requirements of section 658(4) of the

 

Michigan vehicle code, 1949 PA 300, MCL 257.658, is not entitled to

 

recover the damages described in this subdivision. 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 in excess of the personal

 

protection insurance benefits provided under section 3107 or, for 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 injury that

 

impairs or impaired an important body function and that affects or

 

affected the person's general ability to lead his or her normal

 

life. All of the following apply to serious impairment of body

 

function:

 

     (a) To establish a serious impairment of body function, the

 

injured person must satisfy both of the following:

 

     (i) In order for an injury to be objectively manifested, there

 

must be, or must have been, a medically identifiable injury or

 

condition that has a physical basis.

 

     (ii) The injury and impairment must have, or must have had, a

 

meaningful effect on the person's general ability and capacity to

 

lead his or her normal life.

 

     (b) A person asserting that he or she suffered a serious

 

impairment of body function is not required to prove that the

 

injury and impairment were permanent, were extensive, lasted for a

 

significant period of time, or altered the course and trajectory of

 

the person's entire normal life, if there is proof that the injury

 

and impairment otherwise satisfy the requirements of this

 

subsection.

 

     (8) A person has suffered a serious impairment of body

 

function as a matter of law if there is no material factual dispute

 

that the person sustained any of the following injuries as a result

 

of the accident:

 

     (a) Amputation of an arm, leg, hand, foot, thumb, or index

 

finger.

 

     (b) A comminuted, dislocated, open, compound, nonunion, or

 


intra-articular fracture of the pelvis, femur, tibia, or humerus.

 

     (c) Loss of a reproductive organ.

 

     (d) An injury to the spinal cord, a spinal disc, or a vertebra

 

that required the person to undergo surgery on an inpatient

 

hospitalization basis.

 

     (e) An injury that required replacement of a joint in a hip,

 

knee, or shoulder.

 

     (f) Permanent paralysis that affects an important body

 

function.

 

     (g) Loss or removal of all or part of a vital organ, except

 

skin.

 

     (9) Except in cases described in subsection (8), the issue of

 

whether a person suffered a serious impairment of body function as

 

a result of the accident shall be submitted to a jury or trier of

 

fact, as a question of fact, if there is evidence that the person

 

suffered any of the following injuries:

 

     (a) An injury described in subsection (8).

 

     (b) A closed-head injury 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.

 

     (c) Except as provided in subsection (8)(b), a comminuted,

 

open, dislocated, compound, nonunion, or intra-articular fracture

 

of a bone, except a bone in the finger or toe.

 

     (d) Loss of an eye or ear or permanent loss of vision or

 

hearing in 1 or both eyes or ears.

 

     (e) Permanent damage to the cardiovascular or respiratory

 


system that impairs the functioning of that system.

 

     (f) An injury that required the person to undergo any of the

 

following:

 

     (i) If the injury was a traumatic injury to any part of a

 

shoulder, surgery.

 

     (ii) Except as provided in subsection (8)(b), open reduction of

 

a fracture with fixation. This subparagraph does not apply to a

 

fracture in a finger or toe, unless the fracture is located in the

 

index finger or thumb.

 

     (iii) If the injury is a dislocation injury, reduction or

 

surgery to an elbow, hip, or knee.

 

     (iv) Except as provided in subsection (8)(d), if the injury is

 

a herniated or ruptured spinal disc, as diagnosed by a licensed

 

neurosurgeon or orthopedic surgeon, surgery on an outpatient basis.

 

As used in this subparagraph, "surgery" does not include

 

injections.

 

     (10) Except for causes of action based on an injury enumerated

 

in subsection (8), all of the following factors shall be considered

 

by a court under subsection (2)(a), or by a jury or trier of fact

 

if a material factual dispute exists, in determining whether the

 

injured person suffered a serious impairment of body function:

 

     (a) The nature and extent of the injury and impairment.

 

     (b) The type and duration of treatment required.

 

     (c) The duration of the injury and impairment.

 

     (d) The extent of any residual injury and impairment.

 

     (e) The prognosis for eventual recovery.

 

     (f) The differences between the person's life before and after

 


the accident that were caused by the injury and impairment.

 

     (g) Any other relevant factors.

 

     (11) The factors stated in subsection (10) are not exclusive,

 

and no individual factor is dispositive.

 

     (12) The jury or trier of fact shall not consider the

 

inclusion or exclusion of injuries and treatments enumerated in

 

subsections (8) and (9) in determining whether the injured person

 

suffered a serious impairment of body function.

 

     (13) If, under subsection (2) or (9), the jury or trier of

 

fact is to resolve the question of whether the accident resulted in

 

a serious impairment of body function, the jury or trier of fact

 

must find that a serious impairment of body function exists if the

 

jury or trier of fact finds that the person sustained any of the

 

injuries described in subsection (8).

 

     (14) The changes to this section by the amendatory act that

 

added this subsection apply to actions filed on and after and

 

actions pending in a trial or appellate court on the effective date

 

of the amendatory act that added this subsection.

 

     Sec. 3157. (1) A Subject to subsection (2), 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 personal protection insurance.

 

     (2) 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, or a person or institution providing rehabilitative

 

occupational training following the injury, is limited to, and

 

shall be paid by the automobile insurer at, an amount that does not

 

exceed the amount paid for treatment, service, accommodation, and

 

medicine under R 418.10101 to R 418.101503 of the Michigan

 

administrative code or schedules of maximum fees for worker's

 

compensation developed pursuant to those rules. The commissioner

 

shall examine changes to R 418.10101 to R 418.101503 of the

 

Michigan administrative code made after the effective date of the

 

amendatory act that added this subsection. If the commissioner

 

finds that those changes are reasonable and appropriate for

 

purposes of automobile insurance, those changes shall apply to this

 

section and the commissioner shall issue an order to that effect.

 

     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 $250,000.00. 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.

 

     Sec. 3172. (1) A person entitled to claim because of

 

accidental bodily injury arising out of the ownership, operation,

 

maintenance, or use of a motor vehicle as a motor vehicle in this

 

state may obtain personal protection insurance benefits through an

 

assigned claims plan if in any of the following situations:

 

     (a) If no personal protection insurance is applicable to the

 


injury. ,

 

     (b) If no personal protection insurance applicable to the

 

injury can be identified. ,

 

     (c) If the personal protection insurance applicable to the

 

injury cannot be ascertained because of a dispute between 2 or more

 

automobile insurers concerning their obligation to provide coverage

 

or the equitable distribution of the loss. , or

 

     (d) If the only identifiable personal protection insurance

 

applicable to the injury is, because of financial inability of 1 or

 

more insurers to fulfill their obligations, inadequate to provide

 

benefits up to the maximum prescribed. In such case

 

     (2) In any of the situations under subsection (1), unpaid

 

benefits due or coming due are subject to being collected under the

 

assigned claims plan, and the insurer to which the claim is

 

assigned, or the assigned claims facility if the claim is assigned

 

to it, is entitled to reimbursement from the defaulting insurers to

 

the extent of their financial responsibility.

 

     (3) (2) Except as otherwise provided in this subsection,

 

personal protection insurance benefits, including benefits arising

 

from accidents occurring before the effective date of this

 

subsection, March 29, 1985, payable through an assigned claims plan

 

shall be reduced to the extent that benefits covering the same loss

 

are available from other sources, regardless of the nature or

 

number of benefit sources available and regardless of the nature or

 

form of the benefits, to a person claiming personal protection

 

insurance benefits through the assigned claims plan. This

 

subsection shall only apply when only applies if the personal

 


protection insurance benefits are payable through the assigned

 

claims plan because no personal protection insurance is applicable

 

to the injury, no personal protection insurance applicable to the

 

injury can be identified, or the only identifiable personal

 

protection insurance applicable to the injury is, because of

 

financial inability of 1 or more insurers to fulfill their

 

obligations, inadequate to provide benefits up to the maximum

 

prescribed. As used in this subsection "sources" and "benefit

 

sources" do not include the program for medical assistance for the

 

medically indigent under the social welfare act, Act No. 280 of the

 

Public Acts of 1939, being sections 400.1 to 400.121 of the

 

Michigan Compiled Laws, or insurance under the health insurance for

 

the aged act, title XVIII of the social security amendments of 1965

 

1939 PA 280, MCL 400.1 to 400.119b, or the federal medicare program

 

established under title XVIII of the social security act, 42 USC

 

1395 to 1395kkk-1.

 

     (4) (3) If the obligation to provide personal protection

 

insurance benefits cannot be ascertained because of a dispute

 

between 2 or more automobile insurers concerning their obligation

 

to provide coverage or the equitable distribution of the loss, and

 

if a method of voluntary payment of benefits cannot be agreed upon

 

among or between the disputing insurers, all of the following shall

 

apply:

 

     (a) The insurers who are parties to the dispute shall, or the

 

claimant may, immediately notify the assigned claims facility of

 

their inability to determine their statutory obligations.

 

     (b) The claim shall be assigned by the assigned claims

 


facility to an insurer which that shall immediately provide

 

personal protection insurance benefits to the claimant or claimants

 

entitled to benefits in the lowest amount applicable among the

 

policies in dispute.

 

     (c) An action shall be immediately commenced on behalf of the

 

assigned claims facility by the insurer to whom the claim is

 

assigned in circuit court for the purpose of declaring the rights

 

and duties of any interested party.

 

     (d) The insurer to whom the claim is assigned shall join as

 

parties defendant each insurer disputing either the obligation to

 

provide personal protection insurance benefits or the equitable

 

distribution of the loss among the insurers.

 

     (e) The circuit court shall declare the rights and duties of

 

any interested party whether or not other relief is sought or could

 

be granted.

 

     (f) After hearing the action, the circuit court shall

 

determine the insurer or insurers, if any, obligated to provide the

 

applicable personal protection insurance benefits and the equitable

 

distribution, if any, among the insurers obligated therefor, and

 

shall order reimbursement to the assigned claims facility from the

 

insurer or insurers to the extent of the responsibility as

 

determined by the court. The reimbursement ordered under this

 

subdivision shall include all benefits and costs paid or incurred

 

by the assigned claims facility and all benefits and costs paid or

 

incurred by insurers determined not to be obligated to provide

 

applicable personal protection insurance benefits, including

 

reasonable attorney fees and interest at the rate prescribed in

 


section 3175 as of December 31 of the year preceding the

 

determination of the circuit court.

 

     (5) If no personal protection insurance is applicable to the

 

injury or no personal protection insurance applicable to the injury

 

can be identified, personal protection insurance benefits shall be

 

paid only to the limit provided for in section 3107(1)(a)(i). If the

 

only identifiable personal protection insurance applicable to the

 

injury is, because of financial inability of 1 or more insurers to

 

fulfill their obligations, inadequate to provide benefits up to the

 

maximum prescribed, personal protection insurance benefits shall be

 

paid to the limit selected by the insured under section 3107(1)(a)

 

or as provided in section 3107(3)(a).

 

     (6) Any reimbursement ordered under this section and any

 

recovery obtained in circumstances where personal protection

 

insurance benefits have been or may be paid through the assigned

 

claims facility shall include all benefits and costs paid or

 

incurred by insurers determined not to be obligated to provide the

 

applicable personal protection insurance benefits, including

 

reasonable attorney fees and interest at the rate prescribed in

 

section 3175 as of December 31 of the year preceding the

 

reimbursement order or recovery determination.

 

     Sec. 3178. (1) The commissioner shall develop and make

 

available to the public 1 or more informational pamphlets

 

explaining the substance of the changes to this chapter made by the

 

amendatory act that added this section. The pamphlet shall include

 

in particular, but not be limited to, an explanation of the

 

adoption of multiple limits for personal protection benefits under

 


section 3107(1)(a), the ability of an insured to choose the

 

applicable limit, when the insured will have the opportunity to

 

make the choice and when the choice made will be effective, and the

 

consequences of that choice.

 

     (2) Before July 1, 2013, the commissioner shall report to the

 

standing committees of the senate and the house of representatives

 

with primary jurisdiction over insurance matters on the effect of

 

the changes to this chapter made by the amendatory act that added

 

this section, including in particular, but not limited to, the

 

adoption of multiple limits for personal protection benefits under

 

section 3107(1)(a). The report shall contain any recommendations of

 

the commissioner for changes to this chapter.

 

     (3) For the fiscal year ending September 30, 2012, $50,000.00

 

is appropriated from the general fund to the department of

 

licensing and regulatory affairs to be used by the office of

 

insurance and financial services to implement this section.

 

     Enacting section 1. (1) Sections 3101, 3104, 3107, 3114, 3115,

 

3163, and 3172 of the insurance code of 1956, 1956 PA 218, MCL

 

500.3101, 500.3104, 500.3107, 500.3114, 500.3115, 500.3163, and

 

500.3172, as amended by this amendatory act, and section 1245 of

 

the insurance code of 1956, 1956 PA 218, as added by this

 

amendatory act, take effect on July 1, 2012.

 

     (2) Section 3157 of the insurance code of 1956, 1956 PA 218,

 

MCL 500.3157, as amended by this amendatory act, and section 3107c

 

of the insurance code of 1956, 1956 PA 218, as added by this

 

amendatory act, take effect on the effective date of this

 

amendatory act and apply to products, services, and accommodations

 


that are provided on and after the effective date of this

 

amendatory act irrespective of the date of loss, but do not affect

 

any obligation involving a specific claim under a written agreement

 

or consent judgment entered into before the effective date of this

 

amendatory act.

 

     (3) Sections 3113 and 3135 of the insurance code of 1956, 1956

 

PA 218, MCL 500.3113 and 500.3135, as amended by this amendatory

 

act, take effect on the effective date of this amendatory act.