Bill Text: MI HB5603 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Insurance; no-fault; submission of claims to assigned claims plan; enact requirements. Amends sec. 3172 of 1956 PA 218 (MCL 500.3172).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-04-28 - Bill Electronically Reproduced 04/27/2016 [HB5603 Detail]

Download: Michigan-2015-HB5603-Introduced.html

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HOUSE BILL No. 5603

April 27, 2016, Introduced by Rep. Theis and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 3172 (MCL 500.3172), as amended by 2012 PA 204.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3172. (1) A person entitled to claim because of

 

accidental bodily injury arising out of the ownership, operation,

 

maintenance, or use of a motor vehicle as a motor vehicle in this

 

state may obtain personal protection insurance benefits through the

 

assigned claims plan if no any of the following apply:

 

     (a) No personal protection insurance is applicable to the

 

injury. , no

 

     (b) No personal protection insurance applicable to the injury

 

can be identified. , the

 

     (c) The personal protection insurance applicable to the injury

 

cannot be ascertained because of a dispute between 2 or more

automobile insurers concerning their obligation to provide coverage

 

or the equitable distribution of the loss. , or the

 

     (d) The only identifiable personal protection insurance

 

applicable to the injury is, because of financial inability of 1 or

 

more insurers to fulfill their obligations, inadequate to provide

 

benefits up to the maximum prescribed. In that case, unpaid

 

     (2) Unpaid benefits due or coming due as described in

 

subsection (1) may be collected under the assigned claims plan, and

 

the insurer to which the claim is assigned is entitled to

 

reimbursement from the defaulting insurers to the extent of their

 

financial responsibility.

 

     (3) A person entitled to claim benefits through the assigned

 

claims plan as provided in subsection (1) shall file a completed

 

application on a claim form provided by the Michigan automobile

 

insurance placement facility and provide a satisfactory proof of

 

loss to the Michigan automobile insurance placement facility. The

 

Michigan automobile insurance placement facility shall provide a

 

form for the submission of claims that allows the Michigan

 

automobile insurance placement facility to handle the submission of

 

claims in an efficient and reasonable manner. The assigned claims

 

plan must define the requirements for a satisfactory proof of loss.

 

     (4) (2) Except as otherwise provided in this subsection,

 

personal protection insurance benefits, including benefits arising

 

from accidents occurring before March 29, 1985, payable through the

 

assigned claims plan shall must be reduced to the extent that

 

benefits covering the same loss are available from other sources,

 

regardless of the nature or number of benefit sources available and

 

regardless of the nature or form of the benefits, to a person

 

claiming personal protection insurance benefits through the

 

assigned claims plan. This subsection only applies if the personal

 

protection insurance benefits are payable through the assigned

 

claims plan because no personal protection insurance is applicable

 

to the injury, no personal protection insurance applicable to the

 

injury can be identified, or the only identifiable personal

 

protection insurance applicable to the injury is, because of

 

financial inability of 1 or more insurers to fulfill their

 

obligations, inadequate to provide benefits up to the maximum

 

prescribed. under subsection (1)(a), (b), or (d). As used in this

 

subsection, "sources" and "benefit sources" do not include the

 

program for medical assistance for the medically indigent under the

 

social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, or

 

insurance under the health insurance for the aged act, title and

 

disabled under subchapter XVIII of the social security act, 42 USC

 

1395 to 1395kkk-1.1395lll.

 

     (5) (3) If the obligation to provide personal protection

 

insurance benefits cannot be ascertained because of a dispute

 

between 2 or more automobile insurers concerning their obligation

 

to provide coverage or the equitable distribution of the loss, and

 

if a method of voluntary payment of benefits cannot be agreed upon

 

among or between the disputing insurers, all of the following

 

apply:

 

     (a) The insurers who are parties to the dispute shall, or the

 

claimant may, immediately notify the Michigan automobile insurance

 

placement facility of their inability to determine their statutory

 

obligations.

 

     (b) The claim shall be assigned by the Michigan automobile

 

insurance placement facility shall assign the claim to an insurer

 

and the insurer shall immediately provide personal protection

 

insurance benefits to the claimant or claimants entitled to

 

benefits.

 

     (c) An action The insurer to whom the claim is assigned shall

 

be immediately commenced commence an action on behalf of the

 

Michigan automobile insurance placement facility by the insurer to

 

whom the claim is assigned in circuit court to declare the rights

 

and duties of any interested party.

 

     (d) The insurer to whom the claim is assigned shall join as

 

parties defendant to the action commenced under subdivision (c)

 

each insurer disputing either the obligation to provide personal

 

protection insurance benefits or the equitable distribution of the

 

loss among the insurers.

 

     (e) The circuit court shall declare the rights and duties of

 

any interested party whether or not other relief is sought or could

 

be granted.

 

     (f) After hearing the action, the circuit court shall

 

determine the insurer or insurers, if any, obligated to provide the

 

applicable personal protection insurance benefits and the equitable

 

distribution, if any, among the insurers obligated, and shall order

 

reimbursement to the Michigan automobile insurance placement

 

facility from the insurer or insurers to the extent of the

 

responsibility as determined by the court. The reimbursement

 

ordered under this subdivision shall must include all benefits and

 

costs paid or incurred by the Michigan automobile insurance

 

placement facility and all benefits and costs paid or incurred by

 

insurers determined not to be obligated to provide applicable

 

personal protection insurance benefits, including reasonable,

 

actually incurred attorney fees and interest at the rate prescribed

 

in section 3175 as of applicable on December 31 of the year

 

preceding the determination of the circuit court.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.