SENATE BILL No. 346

 

 

May 21, 2015, Introduced by Senator YOUNG and referred to the Committee on Insurance.

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 3107 (MCL 500.3107), as amended by 2012 PA 542.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3107. (1) Except as provided in subsection (2), personal

 

protection insurance benefits are payable for the following:

 

     (a) Allowable expenses consisting of all reasonable charges

 

incurred for reasonably necessary products, services and

 

accommodations for an injured person's care, recovery, or

 

rehabilitation. Allowable expenses within personal protection

 

insurance coverage shall do not include either of the following:

 

     (i) Charges for a hospital room in excess of a reasonable and

 

customary charge for semiprivate accommodations except if unless

 


the injured person requires special or intensive care.

 

     (ii) Funeral and burial expenses in excess of the amount set

 

forth in the policy, which shall must not be less than $1,750.00 or

 

more than $5,000.00.

 

     (b) Work loss consisting of loss of income from work an

 

injured person would have performed during the first 3 years after

 

the date of the accident if he or she had not been injured. Work

 

loss does not include any loss after the date on which the injured

 

person dies. Because the benefits received from personal protection

 

insurance for loss of income are not taxable income, the benefits

 

payable for such loss of income shall be reduced 15% unless the

 

claimant presents to the insurer in support of his or her claim

 

reasonable proof of a lower value of the income tax advantage in

 

his or her case, in which case the lower value shall apply. For the

 

period beginning October 1, 2012 through September 30, 2013, the

 

benefits payable for work loss sustained in a single 30-day period

 

and the income earned by an injured person for work during the same

 

period together shall may not exceed $5,189.00, which maximum shall

 

apply applies pro rata to any lesser period of work loss. Beginning

 

October 1, 2013, the maximum shall be adjusted annually to reflect

 

changes in the cost of living under rules prescribed by the

 

commissioner director, but any change in the maximum shall apply

 

applies only to benefits arising out of accidents occurring

 

subsequent to the date of change in the maximum.

 

     (c) Expenses not exceeding $20.00 per day, reasonably incurred

 

in obtaining ordinary and necessary services in lieu of those that,

 

if he or she had not been injured, an injured person would have


performed during the first 3 years after the date of the accident,

 

not for income but for the benefit of himself or herself or of his

 

or her dependent.

 

     (2) Both of the following apply to personal protection

 

insurance benefits payable under subsection (1):

 

     (a) A person who is 60 years of age or older and in the event

 

of an accidental bodily injury would not be eligible to receive

 

work loss benefits under subsection (1)(b) may waive coverage for

 

work loss benefits by signing a waiver on a form provided by the

 

insurer. An insurer shall offer a reduced premium rate to a person

 

who waives coverage under this subsection subdivision for work loss

 

benefits. Waiver of coverage for work loss benefits applies only to

 

work loss benefits payable to the person or persons who have signed

 

the waiver form.

 

     (b) An insurer shall not be required to provide coverage for

 

the medical use of marihuana or for expenses related to the medical

 

use of marihuana if the use is in compliance with the Michigan

 

medical marihuana act, 2008 IL 1, MCL 333.26421 to 333.26430.