HOUSE BILL NO. 5331

January 15, 2020, Introduced by Reps. Wozniak, Yaroch, Markkanen and Green and referred to the Committee on Insurance.

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending sections 3151 and 3153 (MCL 500.3151 and 500.3153), section 3151 as amended by 2019 PA 22, and by adding section 3151a.

the people of the state of michigan enact:

Sec. 3151. (1) If the mental or physical condition of a person is material to a claim that has been or may be made for past or future personal protection insurance benefits, at the request of an insurer the person shall submit to mental or physical examination by physicians. a physician as provided in this section and section 3151a. A personal protection insurer may include reasonable provisions that are in accord with this section and section 3151a in a personal protection insurance policy for mental and physical examination of persons claiming personal protection insurance benefits.

(2) A physician who conducts a mental or physical examination under this section and section 3151a must be licensed as a physician in this state or another state and meet the following criteria, as applicable:

(a) If care is being provided to the person to be examined by a specialist, the examining physician must specialize in the same specialty as the physician providing the care, and if the physician providing the care is board certified in the specialty, the examining physician must be board certified in that specialty.

(b) During the year immediately preceding the examination, the examining physician must have devoted a majority of his or her professional time to either or both of the following:

(i) The active clinical practice of medicine and, if subdivision (a) applies, the active clinical practice relevant to the specialty.

(ii) The instruction of students in an accredited medical school or in an accredited residency or clinical research program for physicians and, if subdivision (a) applies, the instruction of students is in the specialty.

Sec. 3151a. (1) The no-fault independent medical examination board is created within the department.

(2) The board consists of the following members, appointed by the governor:

(a) A member of the state bar who is familiar with and experienced in practice under this chapter.

(b) A physician who is a specialist in orthopedic medicine.

(c) A physician who is a specialist in neurosurgery.

(d) A physician who is a specialist in neurology.

(e) A physician who is a specialist in neuropsychiatry.

(f) A physician who is a specialist in psychiatry.

(g) A physician who is a specialist in physical medicine and rehabilitation.

(3) The governor shall appoint, as physician members of the board, physicians who are licensed in this state and the majority of whose professional practice consists of the active clinical practice of the applicable specialty and not the examination of individuals who are litigants or potential litigants in lawsuits under this chapter.

(4) The governor shall appoint the first members to the board within 90 days after the effective date of this section. Members of the board shall serve for terms of 4 years or until a successor is appointed, whichever is later, except that of the members first appointed, 2 of the physician members shall serve for 1 year, 2 of the physician members shall serve for 2 years, and the final 2 physicians and the lawyer members shall serve for 3 years.

(5) If a vacancy occurs on the board, the governor shall make an appointment for the unexpired term in the same manner as the original appointment.

(6) The governor may remove a member of the board for incompetence, dereliction of duty, malfeasance, misfeasance, or nonfeasance in office, or any other good cause.

(7) The director shall call the first meeting of the board. At the first meeting, the board shall elect from among its members a chairperson and other officers as it considers necessary or appropriate. After the first meeting, the board shall meet at least quarterly, or more frequently at the call of the chairperson or if requested by 3 or more members.

(8) A majority of the members of the board constitute a quorum for the transaction of business at a meeting of the board. A majority of the members present and serving are required for official action of the board.

(9) The board shall conduct its business at public meetings held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. However, the board may go into executive session to discuss any matters related to matters that are protected by the physician-patient privilege, including matters that are required to be disclosed in the course of an action under this chapter.

(10) A writing prepared, owned, used, in the possession of, or retained by the board in the performance of an official function is subject to the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. This subsection does not apply to a writing that is protected by the physician-patient privilege, including a writing that is required to be disclosed in the course of an action under this chapter.

(11) The director shall determine the amount of compensation for the members of the board. From appropriations for the purpose, the department shall compensate members of the board, reimburse the members for their actual and necessary expenses incurred in the performance of their official duties as members of the board, and provide the board with offices and staff as necessary to perform the board's duties under this section.

(12) The board shall do all of the following:

(a) Select and appoint physicians who are licensed to practice medicine in this state and, as necessary, other individuals who are licensed under article 15 of the public health code, 1978 PA 368, MCL 333.16101 to 333.18838, to conduct examinations under section 3151. The board shall use a random selection process in selecting and appointing individuals to conduct examinations under section 3151.

(b) Approve examination fees to be charged by individuals who conduct examinations under section 3151.

(c) As the board determines to be necessary and appropriate, adopt procedures and standards to be used by individuals who conduct examinations under section 3151.

(d) Review reports of individuals who conduct examinations under section 3151 as the board determines necessary to maintain quality and independence of the individuals who conduct examinations under section 3151.

(e) Investigate and take action on complaints about the quality and independence of examinations conducted by the individuals selected by the board.

(f) Anything else that is necessary to carry out the board's duties under this section.

(13) A person that wishes to have an injured person examined under section 3151 shall have the examination conducted only by an individual appointed by the board under subsection (12).

(14) An examination fee charged by an individual who conducts an examination under section 3151 must be equally divided between both of the following:

(a) The person that wishes to have an injured person examined under section 3151.

(b) The injured person.

(15) As used in this section, "board" means the no-fault independent medical examination board created by this section.

Sec. 3153. A court may make such orders in regard to the a refusal to comply with sections 3151 and to 3152 as that are just, except that the court shall not enter an order shall not be entered directing the arrest of a person for disobeying an order to submit to a physical or mental examination. The orders that may be made in regard to such a the refusal include, but are not limited to:

(a) An order that the mental or physical condition of the disobedient person shall be is taken to be as established for the purposes of the claim in accordance with the contention of the party obtaining the order.

(b) An order refusing to allow the disobedient person to support or oppose designated claims or defenses, or prohibiting him or her from introducing evidence of mental or physical condition.

(c) An order rendering judgment by default against the disobedient person as to his or her entire claim or a designated part of it.

(d) An order requiring the disobedient person to reimburse the insurer for reasonable attorneys' fees and expenses incurred in defense against the claim.

(e) An order requiring delivery of a report, in conformity with section 3152, on such terms as that are just, and if a physician fails or refuses to make the report, a the court may exclude his the physician's testimony if offered at trial.

Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.