April 27, 2005, Introduced by Senator HAMMERSTROM and referred to the Committee on Banking and Financial Institutions.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 3109a and 3114 (MCL 500.3109a and 500.3114),
section 3114 as amended by 2002 PA 38.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3109a. An insurer providing personal protection insurance
benefits shall offer, at appropriately reduced premium rates,
deductibles and exclusions reasonably related to other health and
accident coverage on the insured. The deductibles and exclusions
required
to be offered by this section shall be are subject to
prior
approval by the commissioner and shall apply only to
benefits
payable to the person named in the policy, the spouse of
the
insured and any relative of either domiciled in the same
household
to any person claiming benefits under the policy.
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 livery 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.
(a) (d)
The motor vehicle insurer of the
owner or registrant
of the motorcycle involved in the accident.
(b) The motor vehicle insurer of the operator of the
motorcycle involved in the accident.
(c) The insurer of the owner or registrant of the motor
vehicle involved in the accident.
(d) The insurer of the operator of the motor vehicle 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 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.