NO-FAULT; TORT LIABILITY S.B. 124: FLOOR SUMMARY
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Senate Bill 124 (as discharged)
Sponsor: Senator Bruce Patterson
Committee: Judiciary

CONTENT
The bill would amend the definition of "serious impairment of body function" in provisions of the Insurance Code that eliminate tort liability arising out of the ownership, use, or maintenance of a motor vehicle, subject to several exceptions.


Under one of the exceptions, a person remains subject to tort liability for noneconomic loss caused by his or her ownership, use, or maintenance of a motor vehicle if the injured person has suffered death, permanent serious disfigurement, or serious impairment of body function.


The Code defines "serious impairment of body function" as "an objectively manifested impairment of an important body function that affects the person's general ability to lead his or her normal life".


The bill, instead, would define the term as "an objectively manifested injury involving an important body function that, in some way and for some time, affected the injured person's ability to lead his or her normal life".


MCL 500.3135 Legislative Analyst: Suzanne Lowe

FISCAL IMPACT
The bill would have an indeterminate fiscal impact on State and local government. To the extent that the bill would broaden the definition of "serious impairment of body function", there could be an increase in civil suits. In cases in which the State or local unit would be a defendant, there could be an increase in damages paid, but that amount is difficult to predict and would vary on a case-by-case basis. In FY 2006-07, the State paid a total of $2,506,962 for automotive liability claims not exceeding $1.0 million.


Date Completed: 6-23-08 Fiscal Analyst: Stephanie Yu




floor\sb124 Analysis available @ http://www.michiganlegislature.org
 This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb124/0708