Bill Text: MI HB4138 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Insurance; no-fault; requirement for all motorcyclists to purchase unlimited PIP coverage when choosing to ride helmetless; provide for. Amends secs. 2111, 3103, 3114 & 3177 of 1956 PA 218 (MCL 500.2111 et seq.).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-03-24 - Recommendation Concurred In [HB4138 Detail]

Download: Michigan-2009-HB4138-Introduced.html

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HOUSE BILL No. 4138

 

February 4, 2009, Introduced by Rep. Angerer and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 2111, 3103, 3114, and 3177 (MCL 500.2111,

 

500.3103, 500.3114, and 500.3177), section 2111 as amended by 2002

 

PA 492, section 3103 as amended by 1986 PA 173, section 3114 as

 

amended by 2002 PA 38, and section 3177 as amended by 1984 PA 426.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2111. (1) Notwithstanding any provision of this act and

 

this chapter to the contrary, classifications and territorial base

 

rates used by any insurer in this state with respect to automobile

 

insurance or home insurance shall conform to the applicable

 

requirements of this section.

 

     (2) Classifications established pursuant to this section for

 

automobile insurance shall be based only upon 1 or more of the

 

following factors, which shall be applied by an insurer on a

 

uniform basis throughout the state:

 

     (a) With respect to all automobile insurance coverages:

 

     (i) Either the age of the driver; the length of driving

 

experience; or the number of years licensed to operate a motor

 

vehicle.

 

     (ii) Driver primacy, based upon the proportionate use of each

 

vehicle insured under the policy by individual drivers insured or

 

to be insured under the policy.

 

     (iii) Average miles driven weekly, annually, or both.

 

     (iv) Type of use, such as business, farm, or pleasure use.

 

     (v) Vehicle characteristics, features, and options, such as

 

engine displacement, ability of vehicle and its equipment to

 

protect passengers from injury and other similar items, including

 

vehicle make and model.

 

     (vi) Daily or weekly commuting mileage.

 

     (vii) Number of cars insured by the insurer or number of

 

licensed operators in the household. However, number of licensed

 

operators shall not be used as an indirect measure of marital

 

status.

 

     (viii) Amount of insurance.

 

     (b) In addition to the factors prescribed in subdivision (a),

 

with respect to personal protection insurance coverage:

 

     (i) Earned income.

 

     (ii) Number of dependents of income earners insured under the

 

policy.

 

     (iii) Coordination of benefits.

 

     (iv) Use of a safety belt.

 

     (v) For a motorcyclist, use of a crash helmet. As used in this

 

subparagraph, "crash helmet" means that term as used in section 658

 

of the Michigan vehicle code, 1949 PA 300, MCL 257.658.

 

     (c) In addition to the factors prescribed in subdivision (a),

 

with respect to collision and comprehensive coverages:

 

     (i) The anticipated cost of vehicle repairs or replacement,

 

which may be measured by age, price, cost new, or value of the

 

insured automobile, and other factors directly relating to that

 

anticipated cost.

 

     (ii) Vehicle make and model.

 

     (iii) Vehicle design characteristics related to vehicle

 

damageability.

 

     (iv) Vehicle characteristics relating to automobile theft

 

prevention devices.

 

     (d) With respect to all automobile insurance coverage other

 

than comprehensive, successful completion by the individual driver

 

or drivers insured under the policy of an accident prevention

 

education course that meets the following criteria:

 

     (i) The course shall include a minimum of 8 hours of classroom

 

instruction.

 

     (ii) The course shall include, but not be limited to, a review

 

of all of the following:

 

     (A) The effects of aging on driving behavior.

 

     (B) The shapes, colors, and types of road signs.

 

     (C) The effects of alcohol and medication on driving.

 

     (D) The laws relating to the proper use of a motor vehicle.

 

     (E) Accident prevention measures.

 

     (F) The benefits of safety belts and child restraints.

 

     (G) Major driving hazards.

 

     (H) Interaction with other highway users such as

 

motorcyclists, bicyclists, and pedestrians.

 

     (3) Each insurer shall establish a secondary or merit rating

 

plan for automobile insurance, other than comprehensive coverage. A

 

secondary or merit rating plan required under this subsection shall

 

provide for premium surcharges for any or all coverages for

 

automobile insurance, other than comprehensive coverage, based upon

 

any or all of the following, when that information becomes

 

available to the insurer:

 

     (a) Substantially at-fault accidents.

 

     (b) Convictions for, determinations of responsibility for

 

civil infractions for, or findings of responsibility in probate

 

court for civil infractions for, violations under chapter VI of the

 

Michigan vehicle code, 1949 PA 300, MCL 257.601 to 257.750.

 

However, beginning 90 days after the effective date of this

 

sentence May 28, 1996, an insured shall not be merit rated for a

 

civil infraction under chapter VI of the Michigan vehicle code,

 

1949 PA 300, MCL 257.601 to 257.750, for a period of time longer

 

than that which the secretary of state's office carries points for

 

that infraction on the insured's motor vehicle record.

 

     (4) An insurer shall not establish or maintain rates or rating

 

classifications for automobile insurance based upon sex or marital

 

status.

 

     (5) Notwithstanding other provisions of this chapter,

 

automobile insurance risks may be grouped by territory.

 

     (6) This section shall not be construed as limiting insurers

 

or rating organizations from establishing and maintaining

 

statistical reporting territories. This section shall not be

 

construed to prohibit an insurer from establishing or maintaining,

 

for automobile insurance, a premium discount plan for senior

 

citizens in this state who are 65 years of age or older, if the

 

plan is uniformly applied by the insurer throughout this state. If

 

an insurer has not established and maintained a premium discount

 

plan for senior citizens, the insurer shall offer reduced premium

 

rates to senior citizens in this state who are 65 years of age or

 

older and who drive less than 3,000 miles per year, regardless of

 

statistical data.

 

     (7) Classifications established pursuant to this section for

 

home insurance other than inland marine insurance provided by

 

policy floaters or endorsements shall be based only upon 1 or more

 

of the following factors:

 

     (a) Amount and types of coverage.

 

     (b) Security and safety devices, including locks, smoke

 

detectors, and similar, related devices.

 

     (c) Repairable structural defects reasonably related to risk.

 

     (d) Fire protection class.

 

     (e) Construction of structure, based on structure size,

 

building material components, and number of units.

 

     (f) Loss experience of the insured, based upon prior claims

 

attributable to factors under the control of the insured that have

 

been paid by an insurer. An insured's failure, after written notice

 

from the insurer, to correct a physical condition that presents a

 

risk of repeated loss shall be considered a factor under the

 

control of the insured for purposes of this subdivision.

 

     (g) Use of smoking materials within the structure.

 

     (h) Distance of the structure from a fire hydrant.

 

     (i) Availability of law enforcement or crime prevention

 

services.

 

     (8) Notwithstanding other provisions of this chapter, home

 

insurance risks may be grouped by territory.

 

     (9) An insurer may utilize factors in addition to those

 

specified in this section, if the commissioner finds, after a

 

hearing held pursuant to the administrative procedures act of 1969,

 

1969 PA 306, MCL 24.201 to 24.328, that the factors would encourage

 

innovation, would encourage insureds to minimize the risks of loss

 

from hazards insured against, and would be consistent with the

 

purposes of this chapter.

 

     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 who

 

agrees to wear a crash helmet when riding the 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. 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.

 

     (3) An owner or registrant of a motorcycle who chooses not to

 

wear a crash helmet when riding the motorcycle shall maintain

 

security for payment of benefits under personal protection

 

insurance as provided in section 3107. Each insurer described in

 

this state that affords coverage for a motorcycle as described in

 

subsection (1) also shall offer, to an owner or registrant of a

 

motorcycle, security for payment of benefits under personal

 

protection insurance as provided in section 3107. A certificate of

 

insurance sold pursuant to this subsection shall be identified as

 

insurance satisfying this subsection.

 

     (4) As used in this section, "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. A personal protection insurance policy described in

 

section 3103(3) 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 or a motorcycle accident.

 

     (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 person suffering accidental bodily injury arising from a

 

motor vehicle accident which 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) For a personal protection insurance policy described in

 

section 3103(3), the motor vehicle insurer of the owner or

 

registrant of the motorcycle involved in the accident.

 

     (b) (a) The insurer of the owner or registrant of the motor

 

vehicle involved in the accident.

 

     (c) (b) The insurer of the operator of the motor vehicle

 

involved in the accident.

 

     (d) (c) The motor vehicle insurer of the operator of the

 

motorcycle involved in the accident.

 

     (e) (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.

 

     Sec. 3177. (1) An insurer obligated to pay personal protection

 

insurance benefits for accidental bodily injury to a person arising

 

out of the ownership, maintenance, or use of an uninsured motor

 

vehicle as a motor vehicle may recover such benefits paid and

 

appropriate loss adjustment costs incurred from the owner or

 

registrant of the uninsured motor vehicle or from his or her

 

estate. Failure of such a person to make payment within 30 days

 

after judgment is a ground for suspension or revocation of his or

 

her motor vehicle registration and license as defined in section 25

 

of the Michigan vehicle code, Act No. 300 of the Public Acts of

 

1949, being section 257.25 of the Michigan Compiled Laws 1949 PA

 

300, MCL 257.25. An uninsured motor vehicle for the purpose of this

 

section is a motor vehicle or motorcycle with respect to which

 

security is required by sections section 3101, and 3102, or 3103(3)

 

is not in effect at the time of the accident.

 

     (2) The motor vehicle registration and license shall not be

 

suspended or revoked and the motor vehicle registration and license

 

shall be restored if the debtor enters into a written agreement

 

with the secretary of state permitting the payment of the judgment

 

in installments, if the payment of any installments is not in

 

default.

 

     (3) The secretary of state upon receipt of a certified

 

abstract of court record of a judgment or notice from the insurer

 

of an acknowledgment of debt shall notify the owner or registrant

 

of an uninsured vehicle of the provisions of subsection (1) at that

 

person's last recorded address with the secretary of state and

 

inform that person of the right to enter into a written agreement

 

with the secretary of state for the payment of the judgment or debt

 

in installments.