HOUSE BILL No. 4845

 

April 29, 2009, Introduced by Reps. Scripps, Kandrevas, Haugh, Nathan, Switalski, Roberts, Constan, Haase, Slezak, Barnett, Slavens, Smith and Warren and referred to the Committee on Judiciary.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 3141 and 3145 (MCL 500.3141 and 500.3145).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3141. An insurer may require written notice to be given

 

as soon as practicable after an accident involving a motor vehicle

 

with respect to which the policy affords the security required by

 

this chapter. However, a notice requirement shall not shorten any

 

limitations period or notice period established under this act or

 

applicable to claims made under this act.

 

     Sec. 3145. (1) An action for recovery of personal protection

 

insurance benefits payable under this chapter for accidental bodily

 

injury may shall not be commenced later than 1 year after the date

 

of the accident causing the injury unless written notice of injury

 

as provided herein in this section has been given to the insurer


 

within 1 year after the accident or unless the insurer has

 

previously made a payment of personal protection insurance benefits

 

for the injury. If the notice has been given or a payment has been

 

made, the action may be commenced at any time within 1 year after

 

the most recent allowable expense, work loss, or survivor's loss

 

has been incurred. However, the claimant may not recover benefits

 

for any portion of the loss incurred more than 1 year before the

 

date on which the action was commenced. The notice of injury

 

required by this subsection may be given to the insurer or any of

 

its authorized agents by a person claiming to be entitled to

 

benefits, therefor, or by someone in a person acting on his or her

 

behalf. The notice shall give the name and address of the claimant

 

and indicate in ordinary language the name of the person injured

 

and the time, place, and nature of his or her injury as the injury

 

is reasonably known to the person giving the notice at the time the

 

notice is given. Notwithstanding any other provision of this act to

 

the contrary, the 1-year period for bringing a claim or for

 

recovering benefits on a claim is suspended from the date a

 

specific claim for benefits is submitted to the insurer until the

 

date the insurer provides the person making the claim with a formal

 

written denial of that specific claim.

 

     (2) An action for recovery of property protection insurance

 

benefits shall not be commenced later than 1 year after the

 

accident.

 

     (3) Notwithstanding any other provision of law, all time

 

limitations contained in this section with respect to giving notice

 

of injury, commencing an action for benefits, or recovering


 

benefits on a claim are tolled or otherwise suspended as to the

 

person claiming benefits or others claiming under that person,

 

including, but not limited to, that person's providers, as follows:

 

     (a) If the person entitled to benefits was under 18 years of

 

age at the time the claim for benefits accrues, the claim is tolled

 

until the person reaches 19 years of age, except as otherwise

 

provided in subdivision (b), regardless of whether a guardian or a

 

conservator has been appointed for the person.

 

     (b) If the person entitled to benefits suffered from a

 

condition of mental derangement such as to prevent the person from

 

comprehending rights he or she is otherwise bound to know at the

 

time the claim for benefits accrues, the claim is tolled until 1

 

year after the condition or disability has been unequivocally and

 

irrevocably removed through death or otherwise, regardless of

 

whether a guardian or conservator has been appointed for the

 

person. A judicial declaration of insanity, mental competency, or

 

mental derangement is not required under this subdivision.

 

     (c) If a person dies before the period of limitations under

 

subsection (1) has run or within 90 days after the period of

 

limitations has run, an action surviving by law may be commenced by

 

the personal representative of the deceased person at any time

 

within 2 years after letters of authority are issued even if the

 

period of limitations has run, regardless of whether a guardian or

 

conservator had ever been appointed for the person. However, an

 

action shall not be brought under this subdivision unless the

 

personal representative commences it within 3 years of the time

 

within which the personal representative was authorized by law to


 

commence action.

 

     (4) This section applies to any case filed on or after October

 

1, 1973.

 

     Enacting section 1. Section 3145(3) of the insurance code of

 

1956, 1956 PA 218, MCL 500.3145, as added by this amendatory act,

 

is curative and intended to correct the misinterpretation of law

 

and legislative intent that occurred in the Michigan court of

 

appeals decision in Cameron v Auto Club Insurance Association, 263

 

Mich App 95; 687 NW2d 354 (2004).