August 8, 2007, Introduced by Rep. Scott and referred to the Committee on Health Policy.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 3101, 3103, 3113, and 3114 (MCL 500.3101,
500.3103, 500.3113, and 500.3114), section 3101 as amended by 1988
PA 126, section 3103 as amended by 1986 PA 173, section 3113 as
amended by 1986 PA 93, and section 3114 as amended by 2002 PA 38.
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) "Highway" means that term as defined in section 20 of the
Michigan
vehicle code, Act No. 300 of the Public Acts of 1949,
being
section 257.20 of the Michigan Compiled Laws 1949 PA 300, MCL
257.20.
(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, Act No. 300 of
the
Public Acts of 1949, being section 257.32b of the Michigan
Compiled
Laws 1949 PA 300, MCL 257.32b.
(d) "Motorcycle accident", except as otherwise provided in
section 3113(2), 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.
(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 motorcycle or a moped, as defined in
section
32b of Act No. 300 of the Public Acts of 1949, being
section
257.32b of the Michigan Compiled Laws the Michigan vehicle
code, 1949 PA 300, MCL 257.32b. Motor vehicle does not include a
farm
tractor or other implement of husbandry which that is
not
subject to the registration requirements of the Michigan vehicle
code
pursuant to section 216 of the Michigan vehicle code, Act No.
300
of the Public Acts of 1949, being section 257.216 of the
Michigan
Compiled Laws 1949 PA 300,
MCL 257.216.
(f) "Motor vehicle accident", except as otherwise provided in
section 3113(2), 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.
(g) "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 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.
(h) "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 shall be deemed 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.
Sec. 3103. (1) An owner or registrant of a motorcycle shall
provide security against loss resulting from liability imposed by
law for property damage, bodily injury, or death suffered by a
person arising out of the ownership, maintenance, or use of that
motorcycle. The security shall conform with the requirements of
section 3009(1).
(2)
Each insurer transacting insurance in this state which
that affords coverage for a motorcycle as described in subsection
(1) also shall offer, to an owner or registrant of a motorcycle,
security for the payment of first-party medical benefits only, in
increments of $5,000.00, payable in the event the owner or
registrant is involved in a motorcycle accident or in an accident
as described in section 3113(2). An insurer providing first-party
medical benefits may offer, at appropriate premium rates,
deductibles, provisions for the coordination of these benefits, and
provisions for the subtraction of other benefits provided or
required to be provided under the laws of any state or the federal
government, subject to the prior approval of the commissioner.
These deductibles and provisions shall apply only to benefits
payable to the person named in the policy, the spouse of the
insured, and any relative of either domiciled in the same
household.
Sec. 3113. (1) A person is not entitled to be paid personal
protection insurance benefits for accidental bodily injury if at
the time of the accident any of the following circumstances
existed:
(a)
The person was using a motor vehicle or motorcycle which
that he or she had taken unlawfully, unless the person reasonably
believed that he or she was entitled to take and use the vehicle.
(b) The person was the owner or registrant of a motor vehicle
or motorcycle involved in the accident with respect to which the
security required by section 3101 or 3103 was not in effect.
(c) The person was not a resident of this state, was an
occupant of a motor vehicle or motorcycle not registered in this
state, and was not insured by an insurer which has filed a
certification in compliance with section 3163.
(2) A motorcyclist who was not wearing a crash helmet at the
time of an accident is not entitled to be paid personal protection
insurance benefits for that accident in an amount greater than the
motorcyclist purchased under section 3103(2) for accidental bodily
injury arising out of that motorcycle accident regardless of
whether or not that accident also involved the ownership,
operation, maintenance, or use of a motor vehicle. As used in this
subsection, "crash helmet" means that term as used in section 658
of the Michigan vehicle code, 1949 PA 300, MCL 257.658.
Sec. 3114. (1) Except as provided in subsections (2), (3), and
(5), a personal protection insurance policy described in section
3101(1) applies to accidental bodily injury to the person named in
the policy, the person's spouse, and a relative of either domiciled
in the same household, if the injury arises from a motor vehicle
accident. A personal injury insurance policy described in section
3103(2) applies to accidental bodily injury to the person named in
the policy, the person's spouse, and a relative of either domiciled
in the same household, if the injury arises from a motorcycle
accident. When personal protection insurance benefits or personal
injury benefits described in section 3103(2) are payable to or for
the benefit of an injured person under his or her own policy and
would also be payable under the policy of his or her spouse,
relative, or relative's spouse, the injured person's insurer shall
pay all of the benefits and is not entitled to recoupment from the
other insurer.
(2) A person suffering accidental bodily injury while an
operator or a passenger of a motor vehicle operated in the business
of transporting passengers shall receive the personal protection
insurance benefits to which the person is entitled from the insurer
of the motor vehicle. This subsection does not apply to a passenger
in the following, unless that passenger is not entitled to personal
protection insurance benefits under any other policy:
(a) A school bus, as defined by the department of education,
providing transportation not prohibited by law.
(b) A bus operated by a common carrier of passengers certified
by the department of transportation.
(c) A bus operating under a government sponsored
transportation program.
(d) A bus operated by or providing service to a nonprofit
organization.
(e) A taxicab insured as prescribed in section 3101 or 3102.
(f) A bus operated by a canoe or other watercraft, bicycle, or
horse livery used only to transport passengers to or from a
destination point.
(3) An employee, his or her spouse, or a relative of either
domiciled in the same household, who suffers accidental bodily
injury while an occupant of a motor vehicle owned or registered by
the employer, shall receive personal protection insurance benefits
to which the employee is entitled from the insurer of the furnished
vehicle.
(4) Except as provided in subsections (1) to (3), a person
suffering accidental bodily injury arising from a motor vehicle
accident while an occupant of a motor vehicle shall claim personal
protection insurance benefits from insurers in the following order
of priority:
(a) The insurer of the owner or registrant of the vehicle
occupied.
(b) The insurer of the operator of the vehicle occupied.
(5)
A Except as otherwise
provided in section 3113(2), a
person suffering accidental bodily injury arising from a motor
vehicle
accident which that shows evidence of the involvement of a
motor vehicle while an operator or passenger of a motorcycle shall
claim personal protection insurance benefits from insurers in the
following order of priority:
(a) The insurer of the owner or registrant of the motor
vehicle involved in the accident.
(b) The insurer of the operator of the motor vehicle involved
in the accident.
(c) The motor vehicle insurer of the operator of the
motorcycle involved in the accident.
(d) The motor vehicle insurer of the owner or registrant of
the motorcycle involved in the accident.
(6) If 2 or more insurers are in the same order of priority to
provide personal protection insurance benefits under subsection
(5), an insurer paying benefits due is entitled to partial
recoupment from the other insurers in the same order of priority,
together with a reasonable amount of partial recoupment of the
expense of processing the claim, in order to accomplish equitable
distribution of the loss among all of the insurers.
Enacting section 1. This amendatory act takes effect 120 days
after the date it is enacted and applies to policies issued or
renewed on or after 120 days after the date it is enacted.