HOUSE BILL No. 5636

 

June 5, 2014, Introduced by Rep. Cotter and referred to the Committee on Insurance.

 

     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 only be required to be in effect during the period the motor

 

vehicle is driven or moved upon 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 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 that term as defined in section 20 of

 

the Michigan vehicle code, 1949 PA 300, MCL 257.20.

 

     (d) (c) "Motorcycle" means a vehicle having a saddle or seat

 

for the use of the rider, designed to travel on not more than 3

 

wheels in contact with the ground, which is equipped with a motor

 

that exceeds 50 cubic centimeters piston displacement. The wheels

 

on any attachment to the vehicle shall 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 an ORV.

 

     (e) (d) "Motorcycle accident" means a loss involving the

 

ownership, operation, maintenance, or use of a motorcycle as a

 

motorcycle, but not involving the ownership, operation,

 

maintenance, or use of a motor vehicle as a motor vehicle.

 

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

 

operated or designed for operation upon a public highway by power

 

other than muscular power which has more than 2 wheels. Motor

 

vehicle does not include a any of the following:

 

     (i) A motorcycle or a moped, as defined in section 32b of the

 

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

 


not include a

 

     (ii) 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

 

     (iii) An ORV.

 

     (iv) A golf cart.

 

     (g) (f) "Motor vehicle accident" means a loss involving 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.

 

     (h) (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.

 

     (i) (h) "Owner" means any of the following:

 

     (i) A person renting a motor vehicle or having the use thereof,

 


under a lease or otherwise, for a period that is greater than 30

 

days.

 

     (ii) A person who holds the legal title to a vehicle, other

 

than a person engaged in the business of leasing motor vehicles who

 

is the lessor of a motor vehicle pursuant to under a lease

 

providing for the use of the motor vehicle by the lessee for a

 

period that is greater than 30 days.

 

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

 

motor vehicle under an installment sale contract.

 

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

 

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

 

vehicle pursuant to a lease providing for the use of the motor

 

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

 

     (3) Security may be provided under a policy issued by an

 

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 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 person filing the security as provided in this

 

section.

 

     Enacting section 1. This amendatory act does not take effect

 

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

 

law.