HB-5636, As Passed House, October 2, 2014

SUBSTITUTE FOR

HOUSE BILL NO. 5636

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending section 3101 (MCL 500.3101), as amended by 2008 PA 241.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     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, property

protection insurance, and residual liability insurance. Security

shall is only be required to be in effect during the period the

motor vehicle is driven or moved upon on 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 on 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) "Golf cart" means a vehicle designed for transportation

while playing the game of golf.

(c) (b) "Highway" means highway or street as that term as is

defined in section 20 of the Michigan vehicle code, 1949 PA 300,

MCL 257.20.

     (d) "Moped" means that term as defined in section 32b of the

Michigan vehicle code, 1949 PA 300, MCL 257.32b.

(e) (c) "Motorcycle" means a vehicle having that has a saddle

or seat for the use of the rider, is designed to travel on not more

than 3 wheels in contact with the ground, which and is equipped

with a motor that exceeds 50 cubic centimeters piston displacement.

The For purposes of this subdivision, the wheels on any attachment

to the vehicle shall are 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 or an ORV.

(f) (d) "Motorcycle accident" means a loss involving that

involves the ownership, operation, maintenance, or use of a

motorcycle as a motorcycle, but does not involving involve the

ownership, operation, maintenance, or use of a motor vehicle as a

motor vehicle.

(g) (e) "Motor vehicle" means a vehicle, including a trailer,

that is operated or designed for operation upon on a public highway

by power other than muscular power which and has more than 2

wheels. Motor vehicle does not include a any of the following:

     (i) A motorcycle. or a

     (ii) A moped. , as defined in section 32b of the Michigan

vehicle code, 1949 PA 300, MCL 257.32b. Motor vehicle does not

include a

     (iii) A farm tractor or other implement of husbandry which that

is not subject to the registration requirements of the Michigan

vehicle code pursuant to under section 216 of the Michigan vehicle

code, 1949 PA 300, MCL 257.216. Motor vehicle does not include an

     (iv) An ORV.

     (v) A golf cart.

     (vi) A motorized wheelchair, scooter, or other similar device

designed to assist in the personal mobility of an individual and

not for operation on a public highway.

(h) (f) "Motor vehicle accident" means a loss involving that

involves 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.

(i) (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.

(j) (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 longer than 30 days.

     (ii) A person who that holds the legal title to a motor

vehicle, other than a person engaged in the business of leasing

motor vehicles who that is the lessor of a motor vehicle pursuant

to under a lease providing that provides for the use of the motor

vehicle by the lessee for a period that is greater longer than 30

days.

     (iii) A person who that has the immediate right of possession of

a motor vehicle under an installment sale contract.

(k) (i) "Registrant" does not include a person engaged in the

business of leasing motor vehicles who that is the lessor of a

motor vehicle pursuant to under a lease providing that provides for

the use of the motor vehicle by the lessee for a period that is

greater longer than 30 days.

     (3) Security required by subsection (1) may be provided under

a policy issued by an authorized 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 on 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 a person filing that files the security as

provided in this section.

     Enacting section 1. Section 3101(2)(g)(vi) of the insurance

code of 1956, 1956 PA 218, MCL 500.3101, as added by this

amendatory act, shall be applied retroactively.

     Enacting section 2. This amendatory act does not take effect

unless House Bill No. 5045 of the 97th Legislature is enacted into

law.