June 22, 2011, Introduced by Senators SMITH and HUNE and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 3104, 3107, 3114, and 3115 (MCL 500.3104,
500.3107, 500.3114, and 500.3115), section 3104 as amended by 2002
PA 662, section 3107 as amended by 1991 PA 191, and section 3114 as
amended by 2002 PA 38, and by adding chapter 32A.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3104. (1) An unincorporated, nonprofit association to be
known as the catastrophic claims association, hereinafter referred
to as the association, is created. Each insurer engaged in writing
insurance coverages that provide the security required by section
3101(1) within this state, as a condition of its authority to
transact insurance in this state, shall be a member of the
association
and shall be is bound by the plan of operation of the
association. Each insurer engaged in writing insurance coverages
that provide the security required by section 3103(1) within this
state, as a condition of its authority to transact insurance in
this state, shall be considered a member of the association, but
only for purposes of premiums under subsection (7)(d). Except as
expressly provided in this section, the association is not subject
to any laws of this state with respect to insurers, but in all
other respects the association is subject to the laws of this state
to the extent that the association would be if it were an insurer
organized and subsisting under chapter 50.
(2) The association shall provide and each member shall accept
indemnification for 100% of the amount of ultimate loss sustained
under personal protection insurance coverages in excess of the
following amounts in each loss occurrence:
(a) For a motor vehicle accident policy issued or renewed
before July 1, 2002, $250,000.00.
(b) For a motor vehicle accident policy issued or renewed
during the period July 1, 2002 to June 30, 2003, $300,000.00.
(c) For a motor vehicle accident policy issued or renewed
during the period July 1, 2003 to June 30, 2004, $325,000.00.
(d) For a motor vehicle accident policy issued or renewed
during the period July 1, 2004 to June 30, 2005, $350,000.00.
(e) For a motor vehicle accident policy issued or renewed
during the period July 1, 2005 to June 30, 2006, $375,000.00.
(f) For a motor vehicle accident policy issued or renewed
during the period July 1, 2006 to June 30, 2007, $400,000.00.
(g) For a motor vehicle accident policy issued or renewed
during the period July 1, 2007 to June 30, 2008, $420,000.00.
(h) For a motor vehicle accident policy issued or renewed
during the period July 1, 2008 to June 30, 2009, $440,000.00.
(i) For a motor vehicle accident policy issued or renewed
during the period July 1, 2009 to June 30, 2010, $460,000.00.
(j) For a motor vehicle accident policy issued or renewed
during the period July 1, 2010 to June 30, 2011, $480,000.00.
(k) For a motor vehicle accident policy issued or renewed
during the period July 1, 2011 to June 30, 2013, $500,000.00.
Beginning July 1, 2013, this $500,000.00 amount shall be increased
biennially on July 1 of each odd-numbered year, for policies issued
or renewed before July 1 of the following odd-numbered year, by the
lesser of 6% or the consumer price index, and rounded to the
nearest $5,000.00. This biennial adjustment shall be calculated by
the association by January 1 of the year of its July 1 effective
date.
(3) An insurer may withdraw from the association only upon
ceasing to write insurance that provides the security required by
section 3101(1) in this state.
(4) An insurer whose membership in the association has been
terminated by withdrawal shall continue to be bound by the plan of
operation, and upon withdrawal, all unpaid premiums that have been
charged to the withdrawing member are payable as of the effective
date of the withdrawal.
(5) An unsatisfied net liability to the association of an
insolvent member shall be assumed by and apportioned among the
remaining members of the association as provided in the plan of
operation. The association has all rights allowed by law on behalf
of the remaining members against the estate or funds of the
insolvent member for sums due the association.
(6) If a member has been merged or consolidated into another
insurer or another insurer has reinsured a member's entire business
that provides the security required by section 3101(1) in this
state, the member and successors in interest of the member remain
liable for the member's obligations.
(7) The association shall do all of the following on behalf of
the members of the association:
(a) Assume 100% of all liability as provided in subsection
(2).
(b) Establish procedures by which members shall promptly
report to the association each claim that, on the basis of the
injuries or damages sustained, may reasonably be anticipated to
involve the association if the member is ultimately held legally
liable for the injuries or damages. Solely for the purpose of
reporting claims, the member shall in all instances consider itself
legally liable for the injuries or damages. The member shall also
advise the association of subsequent developments likely to
materially affect the interest of the association in the claim.
(c) Maintain relevant loss and expense data relative to all
liabilities of the association and require each member to furnish
statistics, in connection with liabilities of the association, at
the times and in the form and detail as may be required by the plan
of operation.
(d) In a manner provided for in the plan of operation,
calculate and charge to members of the association a total premium
sufficient to cover the expected losses and expenses of the
association that the association will likely incur during the
period for which the premium is applicable. The premium shall
include an amount to cover incurred but not reported losses for the
period and may be adjusted for any excess or deficient premiums
from previous periods. Excesses or deficiencies from previous
periods may be fully adjusted in a single period or may be adjusted
over several periods in a manner provided for in the plan of
operation. Each member shall be charged an amount equal to that
member's total written car years of insurance providing the
security required by section 3101(1) or 3103(1), or both, written
in this state during the period to which the premium applies,
multiplied by the average premium per car. The average premium per
car shall be the total premium calculated divided by the total
written car years of insurance providing the security required by
section 3101(1) or 3103(1) written in this state of all members
during the period to which the premium applies. A member shall be
charged a premium for a historic vehicle that is insured with the
member of 20% of the premium charged for a car insured with the
member. A member shall not be charged a premium for a car insured
with a member under the low-cost insurance pilot program under
chapter 32A. As used in this subdivision:
(i) "Car" includes a motorcycle but does not include a historic
vehicle.
(ii) "Historic vehicle" means a vehicle that is a registered
historic vehicle under section 803a or 803p of the Michigan vehicle
code, 1949 PA 300, MCL 257.803a and 257.803p.
(e) Require and accept the payment of premiums from members of
the association as provided for in the plan of operation. The
association shall do either of the following:
(i) Require payment of the premium in full within 45 days after
the premium charge.
(ii) Require payment of the premiums to be made periodically to
cover the actual cash obligations of the association.
(f) Receive and distribute all sums required by the operation
of the association.
(g) Establish procedures for reviewing claims procedures and
practices of members of the association. If the claims procedures
or practices of a member are considered inadequate to properly
service the liabilities of the association, the association may
undertake or may contract with another person, including another
member, to adjust or assist in the adjustment of claims for the
member on claims that create a potential liability to the
association and may charge the cost of the adjustment to the
member.
(8) In addition to other powers granted to it by this section,
the association may do all of the following:
(a) Sue and be sued in the name of the association. A judgment
against the association shall not create any direct liability
against the individual members of the association. The association
may provide for the indemnification of its members, members of the
board of directors of the association, and officers, employees, and
other persons lawfully acting on behalf of the association.
(b) Reinsure all or any portion of its potential liability
with reinsurers licensed to transact insurance in this state or
approved by the commissioner.
(c) Provide for appropriate housing, equipment, and personnel
as may be necessary to assure the efficient operation of the
association.
(d) Pursuant to the plan of operation, adopt reasonable rules
for the administration of the association, enforce those rules, and
delegate authority, as the board considers necessary to assure the
proper administration and operation of the association consistent
with the plan of operation.
(e) Contract for goods and services, including independent
claims management, actuarial, investment, and legal services, from
others within or without this state to assure the efficient
operation of the association.
(f) Hear and determine complaints of a company or other
interested party concerning the operation of the association.
(g) Perform other acts not specifically enumerated in this
section that are necessary or proper to accomplish the purposes of
the association and that are not inconsistent with this section or
the plan of operation.
(9) A board of directors is created, hereinafter referred to
as
the board, which shall be is
responsible for the operation of
the association consistent with the plan of operation and this
section.
(10) The plan of operation shall provide for all of the
following:
(a) The establishment of necessary facilities.
(b) The management and operation of the association.
(c) Procedures to be utilized in charging premiums, including
adjustments from excess or deficient premiums from prior periods.
(d) Procedures governing the actual payment of premiums to the
association.
(e) Reimbursement of each member of the board by the
association for actual and necessary expenses incurred on
association business.
(f) The investment policy of the association.
(g) Any other matters required by or necessary to effectively
implement this section.
(11) Each board shall include members that would contribute a
total of not less than 40% of the total premium calculated pursuant
to subsection (7)(d). Each director shall be entitled to 1 vote.
The initial term of office of a director shall be 2 years.
(12) As part of the plan of operation, the board shall adopt
rules providing for the composition and term of successor boards to
the initial board, consistent with the membership composition
requirements in subsections (11) and (13). Terms of the directors
shall be staggered so that the terms of all the directors do not
expire at the same time and so that a director does not serve a
term of more than 4 years.
(13) The board shall consist of 5 directors, and the
commissioner shall be an ex officio member of the board without
vote.
(14) Each director shall be appointed by the commissioner and
shall serve until that member's successor is selected and
qualified. The chairperson of the board shall be elected by the
board. A vacancy on the board shall be filled by the commissioner
consistent with the plan of operation.
(15) After the board is appointed, the board shall meet as
often as the chairperson, the commissioner, or the plan of
operation shall require, or at the request of any 3 members of the
board. The chairperson shall retain the right to vote on all
issues. Four members of the board constitute a quorum.
(16) An annual report of the operations of the association in
a form and detail as may be determined by the board shall be
furnished to each member.
(17) Not more than 60 days after the initial organizational
meeting of the board, the board shall submit to the commissioner
for approval a proposed plan of operation consistent with the
objectives and provisions of this section, which shall provide for
the economical, fair, and nondiscriminatory administration of the
association and for the prompt and efficient provision of
indemnity. If a plan is not submitted within this 60-day period,
then the commissioner, after consultation with the board, shall
formulate and place into effect a plan consistent with this
section.
(18) The plan of operation, unless approved sooner in writing,
shall be considered to meet the requirements of this section if it
is not disapproved by written order of the commissioner within 30
days after the date of its submission. Before disapproval of all or
any part of the proposed plan of operation, the commissioner shall
notify the board in what respect the plan of operation fails to
meet the requirements and objectives of this section. If the board
fails to submit a revised plan of operation that meets the
requirements and objectives of this section within the 30-day
period, the commissioner shall enter an order accordingly and shall
immediately formulate and place into effect a plan consistent with
the requirements and objectives of this section.
(19) The proposed plan of operation or amendments to the plan
of operation are subject to majority approval by the board,
ratified by a majority of the membership having a vote, with voting
rights being apportioned according to the premiums charged in
subsection (7)(d) and are subject to approval by the commissioner.
(20) Upon approval by the commissioner and ratification by the
members of the plan submitted, or upon the promulgation of a plan
by the commissioner, each insurer authorized to write insurance
providing the security required by section 3101(1) in this state,
as provided in this section, is bound by and shall formally
subscribe to and participate in the plan approved as a condition of
maintaining its authority to transact insurance in this state.
(21) The association is subject to all the reporting, loss
reserve, and investment requirements of the commissioner to the
same extent as would a member of the association.
(22) Premiums charged members by the association shall be
recognized in the rate-making procedures for insurance rates in the
same manner that expenses and premium taxes are recognized.
(23) The commissioner or an authorized representative of the
commissioner may visit the association at any time and examine any
and all the association's affairs.
(24) The association does not have liability for losses
occurring before July 1, 1978.
(25) As used in this section:
(a) "Consumer price index" means the percentage of change in
the consumer price index for all urban consumers in the United
States city average for all items for the 24 months prior to
October 1 of the year prior to the July 1 effective date of the
biennial adjustment under subsection (2)(k) as reported by the
United States department of labor, bureau of labor statistics, and
as certified by the commissioner.
(b) "Motor vehicle accident policy" means a policy providing
the coverages required under section 3101(1).
(c) "Ultimate loss" means the actual loss amounts that a
member is obligated to pay and that are paid or payable by the
member, and do not include claim expenses. An ultimate loss is
incurred by the association on the date that the loss occurs.
Sec.
3107. (1) Except as provided in subsection (2), personal
Personal protection insurance benefits are payable for the
following:
(a)
Allowable Except as
provided in subsection (2), 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 not
include charges for a hospital room in excess of a reasonable and
customary charge for semiprivate accommodations except if the
injured person requires special or intensive care, or for funeral
and burial expenses in the amount set forth in the policy which
shall not be less than $1,750.00 or more than $5,000.00.
(b)
Work Except as provided in
subsection (3), 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. Beginning March 30, 1973 for the
period beginning October 1, 2010 through September 30, 2011, 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 not exceed $1,000.00 $4,929.00, which maximum
shall apply pro rata to any lesser period of work loss. Beginning
October
1, 1974 2011, the maximum shall be adjusted annually to
reflect changes in the cost of living under rules prescribed by the
commissioner but any change in the maximum shall apply 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) An insured covered under a low-cost automobile insurance
policy under the pilot program under chapter 32A shall elect
coverage for allowable expenses consisting of all reasonable
charges incurred up to a maximum of $50,000.00 or $100,000.00 as
selected by the insured for reasonably necessary products,
services, and accommodations for an injured person's care,
recovery, or rehabilitation. All of the following apply to a low-
cost automobile insurance policy under the pilot program under
chapter 32A:
(a) Coverage limits are provided on a per loss occurrence
basis.
(b) Coverage applies to benefits payable as follows:
(i) To the insured named in the policy, the insured's spouse,
and any relative of either domiciled in the same household.
(ii) A person not described in subparagraph (i) who is an
occupant of the automobile. Section 3114(4) applies to coverage
under this subparagraph to an occupant of the automobile.
(c) Regardless of the number of motor vehicles insured or
insurers providing security, or the provisions of any other law
providing for direct benefits without regard to fault for motor or
any other vehicle accidents, a person shall not recover duplicate
benefits for the same expense or loss incurred.
(3) (2)
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 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.
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 described in
section 3107(1), 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. The limit of
liability for 2 or more motor vehicles under 1 policy or for 2 or
more policies shall not be added together, combined, or stacked to
determine the limit of insurance coverage available for each
injured person covered under the policy.
(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) 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.
Sec.
3115. (1) Except as provided in subsection (1) of section
3114
3114(1), a person suffering accidental bodily injury while
not
an occupant of a motor vehicle shall claim personal protection
insurance benefits from insurers in the following order of
priority:
(a) Insurers of owners or registrants of motor vehicles
involved in the accident.
(b) Insurers of operators of motor vehicles involved in the
accident.
(2) When 2 or more insurers are in the same order of priority
to provide personal protection insurance benefits 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 such insurers.
(3) A limit upon the amount of personal protection insurance
benefits available because of accidental bodily injury to 1 person
arising from 1 motor vehicle accident shall be determined without
regard to the number of policies applicable to the accident.
(4) The limit of liability for 2 or more motor vehicles under
1 policy or for 2 or more policies shall not be added together,
combined, or stacked to determine the limit of insurance coverage
available for each injured person covered under the policy.
CHAPTER 32A
LOW-COST AUTOMOBILE INSURANCE PILOT PROGRAM
Sec. 3275. As used in this chapter:
(a) "Automobile insurance" means that term as defined in
section 3303.
(b) "Pilot program" means the low-cost automobile insurance
pilot program established under this chapter.
(c) "Qualified applicant" means an individual who meets all of
the following requirements:
(i) Resides in a household with a gross annual household income
that does not exceed 300% of the federal poverty level.
(ii) Is 21 years of age or older and has been continuously
licensed to drive an automobile for a period of 3 years. It is not
necessary that the 3-year period immediately precede the
application for a policy under this chapter, unless the applicant
was not licensed for a period because of the revocation of the
license.
(iii) Has not had in the preceding 3 years more than 1 of
either, but not both, of the following:
(A) A property-damage-only accident in which he or she was
substantially at-fault.
(B) An insurance eligibility point for a moving violation, as
described in section 2103.
(iv) Has not had, in the preceding 3 years, a substantially at-
fault accident involving bodily injury or death.
(v) Has not had a conviction for driving under the influence.
(vi) Has not had a conviction for a moving violation in a work
zone.
(vii) Has not had on his or her motor vehicle record a felony
or misdemeanor conviction relating to the operation of a motor
vehicle.
(viii) Is not a college student claimed as a dependent of
another person for federal or state income tax purposes.
Sec. 3276. (1) The commissioner shall establish a low-cost
automobile insurance pilot program in 1 county in the state that
has a city located in the county with a population of 600,000 or
more.
(2) All of the provisions of this act that apply to private
passenger nonfleet automobile insurance apply to this chapter
unless expressly provided otherwise or unless there is a conflict
with a provision in this chapter.
(3) Notwithstanding any other provision of law, the
commissioner may employ legal, actuarial, accounting, or other
counsel as he or she considers necessary to assist in his or her
responsibilities under this chapter.
(4) The commissioner shall promote and publicize the existence
of the pilot program in the regions where the pilot program is
offered.
Sec. 3277. A low-cost automobile insurance policy under the
pilot program shall have all of the following attributes:
(a) Provide residual liability coverage as required under
section 3131.
(b) Have an initial term of 6 months, renewable for subsequent
6-month terms.
(c) Cover the individual named in the policy and any other
individual using the covered automobile if the use is with the
named insured's permission, express or implied, and within the
scope of that permission. However, the policy shall not provide
automobile liability coverage when the automobile is operated by a
member of the named insured's household who does not satisfy the
requirements in section 3275(c).
(d) Provide coverage described in this section for the
operation of an automobile with a value that does not exceed
$20,000.00. The value of the automobile is the value given to the
automobile by the secretary of state in assessing vehicle
registration fees.
(e) Provide personal protection insurance coverage for
allowable expenses as required under section 3107(2).
(f) Provide personal protection insurance coverage for work
loss as required under section 3107(1)(b).
Sec. 3278. (1) An insured under a low-cost automobile
insurance policy under the pilot program may be offered a premium
installment option under which the insured may pay a specified
portion or portions of the premium for the low-cost automobile
insurance policy on a periodic basis. A premium for a low-cost
automobile insurance policy shall not be financed in any other
manner.
(2) Commencing on April 1, 2012, and annually thereafter, the
automobile insurers who are participating in the pilot program
shall submit the loss and expense data from low-cost automobile
insurance policies and a proposed rate for the low-cost automobile
insurance policy for the pilot program, to the commissioner.
Sec. 3279. A qualified applicant shall certify that
representations made in the application and in documents submitted
to demonstrate eligibility for the low-cost automobile insurance
policy are true and correct and contain no material
misrepresentations or omissions of fact to the best knowledge and
belief of the applicant.
Sec. 3280. (1) An automobile insurer shall provide to a
qualified applicant for a low-cost automobile insurance policy
under this chapter a notice relating to coverage under the policy.
The notice shall be provided in a separate document at the time of
application and include the following statement in 14-point
boldfaced type or font:
"WARNING
INSURANCE COVERAGE PROVIDED IN THE POLICY YOU ARE BUYING
CONTAINS MEDICAL PERSONAL PROTECTION COVERAGES WITH REDUCED
MAXIMUMS.
THE MAXIMUMS APPLY TO ANY ONE OCCURRENCE REGARDLESS OF HOW
MANY PEOPLE MAY BE INJURED.
ALSO, ALL LIABILITY COVERAGE IS VOID - NO ONE IS INSURED AND
OWNERS OF THE INSURED AUTOMOBILE AND OTHERS LEGALLY RESPONSIBLE FOR
THE ACTS OF THE DRIVER OF THE INSURED AUTOMOBILE REMAIN FULLY
PERSONALLY LIABLE IF THE INSURED AUTOMOBILE IS OPERATED BY ANY
OTHER DRIVER IN YOUR HOUSEHOLD WHO:
(A) IS UNDER 21 YEARS OF AGE.
(B) HAS LESS THAN 3 YEARS OF CONTINUOUSLY LICENSED DRIVING
EXPERIENCE.
(C) HAS HAD IN THE PREVIOUS 3 YEARS MORE THAN ONE OF EITHER,
OR BOTH, OF THE FOLLOWING:
(I) A PROPERTY-DAMAGE-ONLY ACCIDENT IN WHICH THE DRIVER WAS
SUBSTANTIALLY AT-FAULT.
(II) AN INSURANCE ELIGIBILITY POINT FOR A MOVING VIOLATION.
(D) HAS HAD IN THE PREVIOUS 3 YEARS A SUBSTANTIALLY AT-FAULT
ACCIDENT INVOLVING BODILY INJURY OR DEATH.
(E) HAS HAD A CONVICTION FOR DRIVING UNDER THE INFLUENCE.
(F) HAS HAD A CONVICTION FOR A MOVING VIOLATION IN A WORK
ZONE.
(G) HAS HAD A FELONY OR MISDEMEANOR CONVICTION FROM A
VIOLATION OF THE VEHICLE CODE ON HIS OR HER MOTOR VEHICLE RECORD.".
(2) The signature of the applicant and insured on the
disclosure form provided under subsection (1) creates a conclusive
presumption that the insurer has complied with the disclosure
requirements of this section.
Sec. 3281. The sale of a low-cost automobile insurance policy
under this chapter shall not be conditioned on the purchase of any
other product or service.
Sec. 3282. (1) A low-cost automobile insurance policy issued
under the pilot program may be canceled only for nonpayment of
premium.
(2) A low-cost automobile insurance policy issued under the
pilot program may be rescinded only for fraud or material
misrepresentation affecting the policy or the insured.
(3) A low-cost automobile insurance policy is subject to
nonrenewal only for the following reasons:
(a) A substantial increase in the hazard insured against.
(b) The insured is no longer a qualified applicant.
Sec. 3283. (1) An insurer that issues a low-cost automobile
insurance policy under the pilot program may offer the insured any
other additional type of automobile insurance coverage such as
uninsured motorists coverage or collision coverage that is not
available under the low-cost automobile insurance policy.
(2) An insured under a low-cost automobile insurance policy
under the pilot program shall not purchase or maintain any
automobile personal protection insurance coverage other than under
a low-cost automobile insurance policy for any additional vehicles
in the insured's household.
Sec. 3284. (1) The pilot program may commence operations on
January 1, 2012, and shall be fully operational by August 1, 2012.
(2) The commissioner may issue an order or promulgate rules
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, to implement the provisions of this chapter.
Sec. 3285. A low-cost automobile insurance policy issued under
the pilot program shall satisfy all financial responsibility
requirements imposed under this act.
Sec. 3286. Beginning August 1, 2014, the commissioner shall
report annually to the legislature on the status of the pilot
program.
Sec. 3287. This chapter does not apply on and after August 1,
2017.