INCREASE RESIDUAL BODILY INJURY AMOUNTS
House Bill 5218
Sponsor: Rep. Bruce Patterson
First Committee: Insurance and Financial Services
Second Committee: Civil Law and the Judiciary
Complete to 8-2-02
A SUMMARY OF HOUSE BILL 5218 AS INTRODUCED 10-16-01
The bill would amend the Insurance Code of 1956 (Public Act 218) to increase the minimum automobile liability insurance coverage. Under the act, an individual's no-fault insurance policy generally protects insured persons from being sued as a result of an auto accident, with certain exceptions. The required amount of coverage of the no-fault policy will pay up to that amount if it is determined that the insured individual was legally responsible for the accident. Current law sets the minimum liability coverage at $20,000 because of bodily injury to or the death of one individual in any one accident, or $40,000 because of bodily injury to or the death of any two or more individuals in any one accident. This means that the policy would pay up to $20,000 for a person who is injured or killed in an accident, or up to $40,000 for each accident in which several people were injured or killed. The bill would raise the minimum level of coverage to $75,000 for one individual and $150,000 for two or more individuals in any one accident.
MCL 500.3009
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.