SENATE BILL No. 392

 

 

April 22, 2003, Introduced by Senator GEORGE and referred to the Committee on Banking and Financial Institutions.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1956 PA 218, entitled                                             

                                                                                

    "The insurance code of 1956,"                                               

                                                                                

    by amending sections 3103, 3104, and 3114 (MCL 500.3103,                    

                                                                                

    500.3104, and 500.3114), section 3103 as amended by 1986 PA 173,            

                                                                                

    section 3104 as amended by 2002 PA 662, and section 3114 as                 

                                                                                

    amended by 2002 PA 38.                                                      

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 3103.   (1)  An owner or registrant of a motorcycle                    

                                                                                

2   shall  provide  maintain security  against loss resulting from              

                                                                                

3   liability imposed by law for property damage, bodily injury, or             

                                                                                

4   death suffered by a person arising out of the ownership,                    

                                                                                

5   maintenance, or use of that motorcycle.  The security shall                 

                                                                                

6   conform with the requirements of section 3009(1).  for payment of           

                                                                                

7   benefits under personal protection insurance, property protection           

                                                                                

8   insurance, and residual liability insurance.  Security is only              

                                                                                


                                                                                

1   required to be in effect during the period the motorcycle is                

                                                                                

2   driven or moved upon a highway.  Notwithstanding any other                  

                                                                                

3   provision in this act, an insurer that has issued an insurance              

                                                                                

4   policy on a motorcycle that is not driven or moved upon a highway           

                                                                                

5   may allow the insured owner or registrant of the motorcycle to              

                                                                                

6   delete a portion of the coverages under the policy and maintain             

                                                                                

7   the comprehensive coverage portion of the policy in effect.                 

                                                                                

8       (2) Each insurer transacting insurance in this state which                  

                                                                                

9   affords coverage for a motorcycle as described in subsection (1)            

                                                                                

10  also shall offer, to an owner or registrant of a motorcycle,                

                                                                                

11  security for the payment of first-party medical benefits only, in           

                                                                                

12  increments of $5,000.00, payable in the event the owner or                  

                                                                                

13  registrant is involved in a motorcycle accident.  An insurer                

                                                                                

14  providing first-party medical benefits may offer, at appropriate            

                                                                                

15  premium rates, deductibles, provisions for the coordination of              

                                                                                

16  these benefits, and provisions for the subtraction of other                 

                                                                                

17  benefits provided or required to be provided under the laws of              

                                                                                

18  any state or the federal government, subject to the prior                   

                                                                                

19  approval of the commissioner.  These deductibles and provisions             

                                                                                

20  shall apply only to benefits payable to the person named in the             

                                                                                

21  policy, the spouse of the insured, and any relative of either               

                                                                                

22  domiciled in the same household.                                            

                                                                                

23      Sec. 3104.  (1) An unincorporated, nonprofit association to                 

                                                                                

24  be known as the catastrophic claims association, hereinafter                

                                                                                

25  referred to as the association, is created.  Each insurer engaged           

                                                                                

26  in writing insurance coverages that provide the security required           

                                                                                

27  by section 3101(1) or 3103 within this state, as a condition of             


                                                                                

1   its authority to transact insurance in this state, shall be a               

                                                                                

2   member of the association and shall be bound by the plan of                 

                                                                                

3   operation of the association.   Each insurer engaged in writing             

                                                                                

4   insurance coverages that provide the security required by section           

                                                                                

5   3103(1) within this state, as a condition of its authority to               

                                                                                

6   transact insurance in this state, shall be considered a member of           

                                                                                

7   the association, but only for purposes of premiums under                    

                                                                                

8   subsection (7)(d).  Except as expressly provided in this section,           

                                                                                

9   the association is not subject to any laws of this state with               

                                                                                

10  respect to insurers, but in all other respects the association is           

                                                                                

11  subject to the laws of this state to the extent that the                    

                                                                                

12  association would be if it were an insurer organized and                    

                                                                                

13  subsisting under chapter 50.                                                

                                                                                

14      (2) The association shall provide and each member shall                     

                                                                                

15  accept indemnification for 100% of the amount of ultimate loss              

                                                                                

16  sustained under personal protection insurance coverages in excess           

                                                                                

17  of the following amounts in each loss occurrence:                           

                                                                                

18      (a) For a motor vehicle accident policy issued or renewed                   

                                                                                

19  before July 1, 2002, $250,000.00.                                           

                                                                                

20      (b) For a motor vehicle accident policy issued or renewed                   

                                                                                

21  during the period July 1, 2002 to June 30, 2003, $300,000.00.               

                                                                                

22      (c) For a motor vehicle accident policy issued or renewed                   

                                                                                

23  during the period July 1, 2003 to June 30, 2004, $325,000.00.               

                                                                                

24      (d) For a motor vehicle accident policy issued or renewed                   

                                                                                

25  during the period July 1, 2004 to June 30, 2005, $350,000.00.               

                                                                                

26      (e) For a motor vehicle accident policy issued or renewed                   

                                                                                

27  during the period July 1, 2005 to June 30, 2006, $375,000.00.               


                                                                                

1       (f) For a motor vehicle accident policy issued or renewed                   

                                                                                

2   during the period July 1, 2006 to June 30, 2007, $400,000.00.               

                                                                                

3       (g) For a motor vehicle accident policy issued or renewed                   

                                                                                

4   during the period July 1, 2007 to June 30, 2008, $420,000.00.               

                                                                                

5       (h) For a motor vehicle accident policy issued or renewed                   

                                                                                

6   during the period July 1, 2008 to June 30, 2009, $440,000.00.               

                                                                                

7       (i) For a motor vehicle accident policy issued or renewed                   

                                                                                

8   during the period July 1, 2009 to June 30, 2010, $460,000.00.               

                                                                                

9       (j) For a motor vehicle accident policy issued or renewed                   

                                                                                

10  during the period July 1, 2010 to June 30, 2011, $480,000.00.               

                                                                                

11      (k) For a motor vehicle accident policy issued or renewed                   

                                                                                

12  during the period July 1, 2011 to June 30, 2013, $500,000.00.               

                                                                                

13  Beginning July 1, 2013, this $500,000.00 amount shall be                    

                                                                                

14  increased biennially on July 1 of each odd-numbered year, for               

                                                                                

15  policies issued or renewed before July 1 of the following                   

                                                                                

16  odd-numbered year, by the lesser of 6% or the consumer price                

                                                                                

17  index, and rounded to the nearest $5,000.00.  This biennial                 

                                                                                

18  adjustment shall be calculated by the association by January 1 of           

                                                                                

19  the year of its July 1 effective date.                                      

                                                                                

20      (3) An insurer may withdraw from the association only upon                  

                                                                                

21  ceasing to write insurance that provides the security required by           

                                                                                

22  section 3101(1) or 3103 in this state.                                      

                                                                                

23      (4) An insurer whose membership in the association has been                 

                                                                                

24  terminated by withdrawal shall continue to be bound by the plan             

                                                                                

25  of operation, and upon withdrawal, all unpaid premiums that have            

                                                                                

26  been charged to the withdrawing member are payable as of the                

                                                                                

27  effective date of the withdrawal.                                           


                                                                                

1       (5) An unsatisfied net liability to the association of an                   

                                                                                

2   insolvent member shall be assumed by and apportioned among the              

                                                                                

3   remaining members of the association as provided in the plan of             

                                                                                

4   operation.  The association has all rights allowed by law on                

                                                                                

5   behalf of the remaining members against the estate or funds of              

                                                                                

6   the insolvent member for sums due the association.                          

                                                                                

7       (6) If a member has been merged or consolidated into another                

                                                                                

8   insurer or another insurer has reinsured a member's entire                  

                                                                                

9   business that provides the security required by section 3101(1)             

                                                                                

10  or 3103 in this state, the member and successors in interest of             

                                                                                

11  the member remain liable for the member's obligations.                      

                                                                                

12      (7) The association shall do all of the following on behalf                 

                                                                                

13  of the members of the association:                                          

                                                                                

14      (a) Assume 100% of all liability as provided in subsection                  

                                                                                

15  (2).                                                                        

                                                                                

16      (b) Establish procedures by which members shall promptly                    

                                                                                

17  report to the association each claim that, on the basis of the              

                                                                                

18  injuries or damages sustained, may reasonably be anticipated to             

                                                                                

19  involve the association if the member is ultimately held legally            

                                                                                

20  liable for the injuries or damages.  Solely for the purpose of              

                                                                                

21  reporting claims, the member shall in all instances consider                

                                                                                

22  itself legally liable for the injuries or damages.  The member              

                                                                                

23  shall also advise the association of subsequent developments                

                                                                                

24  likely to materially affect the interest of the association in              

                                                                                

25  the claim.                                                                  

                                                                                

26      (c) Maintain relevant loss and expense data relative to all                 

                                                                                

27  liabilities of the association and require each member to furnish           


                                                                                

1   statistics, in connection with liabilities of the association, at           

                                                                                

2   the times and in the form and detail as may be required by the              

                                                                                

3   plan of operation.                                                          

                                                                                

4       (d) In a manner provided for in the plan of operation,                      

                                                                                

5   calculate and charge to members of the association a total                  

                                                                                

6   premium sufficient to cover the expected losses and expenses of             

                                                                                

7   the association that the association will likely incur during the           

                                                                                

8   period for which the premium is applicable.  The premium shall              

                                                                                

9   include an amount to cover incurred but not reported losses for             

                                                                                

10  the period and may be adjusted for any excess or deficient                  

                                                                                

11  premiums from previous periods.  Excesses or deficiencies from              

                                                                                

12  previous periods may be fully adjusted in a single period or may            

                                                                                

13  be adjusted over several periods in a manner provided for in the            

                                                                                

14  plan of operation.  Each member shall be charged an amount equal            

                                                                                

15  to that member's total written car years of insurance providing             

                                                                                

16  the security required by section 3101(1) or  3103(1)  3103, or              

                                                                                

17  both, written in this state during the period to which the                  

                                                                                

18  premium applies, multiplied by the average premium per car.  The            

                                                                                

19  average premium per car shall be the total premium calculated               

                                                                                

20  divided by the total written car years of insurance providing the           

                                                                                

21  security required by section 3101(1) or  3103(1)  3103 written in           

                                                                                

22  this state of all members during the period to which the premium            

                                                                                

23  applies.  A member shall be charged a premium for a historic                

                                                                                

24  vehicle that is insured with the member of 20% of the premium               

                                                                                

25  charged for a car insured with the member.  As used in this                 

                                                                                

26  subdivision:                                                                

                                                                                

27                                                                               (i) "Car" includes a motorcycle but does not include a                              


                                                                                

1   historic vehicle.                                                           

                                                                                

2       (ii) "Historic vehicle" means a vehicle that is a registered                 

                                                                                

3   historic vehicle under section 803a or 803p of the Michigan                 

                                                                                

4   vehicle code, 1949 PA 300, MCL 257.803a and 257.803p.                       

                                                                                

5       (e) Require and accept the payment of premiums from members                 

                                                                                

6   of the association as provided for in the plan of operation.  The           

                                                                                

7   association shall do either of the following:                               

                                                                                

8                                                                                (i) Require payment of the premium in full within 45 days                           

                                                                                

9   after the premium charge.                                                   

                                                                                

10      (ii) Require payment of the premiums to be made periodically                 

                                                                                

11  to cover the actual cash obligations of the association.                    

                                                                                

12      (f) Receive and distribute all sums required by the operation               

                                                                                

13  of the association.                                                         

                                                                                

14      (g) Establish procedures for reviewing claims procedures and                

                                                                                

15  practices of members of the association.  If the claims                     

                                                                                

16  procedures or practices of a member are considered inadequate to            

                                                                                

17  properly service the liabilities of the association, the                    

                                                                                

18  association may undertake or may contract with another person,              

                                                                                

19  including another member, to adjust or assist in the adjustment             

                                                                                

20  of claims for the member on claims that create a potential                  

                                                                                

21  liability to the association and may charge the cost of the                 

                                                                                

22  adjustment to the member.                                                   

                                                                                

23      (8) In addition to other powers granted to it by this                       

                                                                                

24  section, the association may do all of the following:                       

                                                                                

25      (a) Sue and be sued in the name of the association.  A                      

                                                                                

26  judgment against the association shall not create any direct                

                                                                                

27  liability against the individual members of the association.  The           


                                                                                

1   association may provide for the indemnification of its members,             

                                                                                

2   members of the board of directors of the association, and                   

                                                                                

3   officers, employees, and other persons lawfully acting on behalf            

                                                                                

4   of the association.                                                         

                                                                                

5       (b) Reinsure all or any portion of its potential liability                  

                                                                                

6   with reinsurers licensed to transact insurance in this state or             

                                                                                

7   approved by the commissioner.                                               

                                                                                

8       (c) Provide for appropriate housing, equipment, and personnel               

                                                                                

9   as may be necessary to assure the efficient operation of the                

                                                                                

10  association.                                                                

                                                                                

11      (d) Pursuant to the plan of operation, adopt reasonable rules               

                                                                                

12  for the administration of the association, enforce those rules,             

                                                                                

13  and delegate authority, as the board considers necessary to                 

                                                                                

14  assure the proper administration and operation of the association           

                                                                                

15  consistent with the plan of operation.                                      

                                                                                

16      (e) Contract for goods and services, including independent                  

                                                                                

17  claims management, actuarial, investment, and legal services,               

                                                                                

18  from others within or without this state to assure the efficient            

                                                                                

19  operation of the association.                                               

                                                                                

20      (f) Hear and determine complaints of a company or other                     

                                                                                

21  interested party concerning the operation of the association.               

                                                                                

22      (g) Perform other acts not specifically enumerated in this                  

                                                                                

23  section that are necessary or proper to accomplish the purposes             

                                                                                

24  of the association and that are not inconsistent with this                  

                                                                                

25  section or the plan of operation.                                           

                                                                                

26      (9) A board of directors is created, hereinafter referred to                

                                                                                

27  as the board, which shall be responsible for the operation of the           


                                                                                

1   association consistent with the plan of operation and this                  

                                                                                

2   section.                                                                    

                                                                                

3       (10) The plan of operation shall provide for all of the                     

                                                                                

4   following:                                                                  

                                                                                

5       (a) The establishment of necessary facilities.                              

                                                                                

6       (b) The management and operation of the association.                        

                                                                                

7       (c) Procedures to be utilized in charging premiums, including               

                                                                                

8   adjustments from excess or deficient premiums from prior                    

                                                                                

9   periods.                                                                    

                                                                                

10      (d) Procedures governing the actual payment of premiums to                  

                                                                                

11  the association.                                                            

                                                                                

12      (e) Reimbursement of each member of the board by the                        

                                                                                

13  association for actual and necessary expenses incurred on                   

                                                                                

14  association business.                                                       

                                                                                

15      (f) The investment policy of the association.                               

                                                                                

16      (g) Any other matters required by or necessary to effectively               

                                                                                

17  implement this section.                                                     

                                                                                

18      (11) Each board shall include members that would contribute a               

                                                                                

19  total of not less than 40% of the total premium calculated                  

                                                                                

20  pursuant to subsection (7)(d).  Each director shall be entitled             

                                                                                

21  to 1 vote.  The initial term of office of a director shall be 2             

                                                                                

22  years.                                                                      

                                                                                

23      (12) As part of the plan of operation, the board shall adopt                

                                                                                

24  rules providing for the composition and term of successor boards            

                                                                                

25  to the initial board, consistent with the membership composition            

                                                                                

26  requirements in subsections (11) and (13).  Terms of the                    

                                                                                

27  directors shall be staggered so that the terms of all the                   


                                                                                

1   directors do not expire at the same time and so that a director             

                                                                                

2   does not serve a term of more than 4 years.                                 

                                                                                

3       (13) The board shall consist of 5 directors, and the                        

                                                                                

4   commissioner shall be an ex officio member of the board without             

                                                                                

5   vote.                                                                       

                                                                                

6       (14) Each director shall be appointed by the commissioner and               

                                                                                

7   shall serve until that member's successor is selected and                   

                                                                                

8   qualified.  The chairperson of the board shall be elected by the            

                                                                                

9   board.  A vacancy on the board shall be filled by the                       

                                                                                

10  commissioner consistent with the plan of operation.                         

                                                                                

11      (15) After the board is appointed, the board shall meet as                  

                                                                                

12  often as the chairperson, the commissioner, or the plan of                  

                                                                                

13  operation shall require, or at the request of any 3 members of              

                                                                                

14  the board.  The chairperson shall retain the right to vote on all           

                                                                                

15  issues.  Four members of the board constitute a quorum.                     

                                                                                

16      (16) An annual report of the operations of the association in               

                                                                                

17  a form and detail as may be determined by the board shall be                

                                                                                

18  furnished to each member.                                                   

                                                                                

19      (17) Not more than 60 days after the initial organizational                 

                                                                                

20  meeting of the board, the board shall submit to the commissioner            

                                                                                

21  for approval a proposed plan of operation consistent with the               

                                                                                

22  objectives and provisions of this section, which shall provide              

                                                                                

23  for the economical, fair, and nondiscriminatory administration of           

                                                                                

24  the association and for the prompt and efficient provision of               

                                                                                

25  indemnity.  If a plan is not submitted within this 60-day period,           

                                                                                

26  then the commissioner, after consultation with the board, shall             

                                                                                

27  formulate and place into effect a plan consistent with this                 


                                                                                

1   section.                                                                    

                                                                                

2       (18) The plan of operation, unless approved sooner in                       

                                                                                

3   writing, shall be considered to meet the requirements of this               

                                                                                

4   section if it is not disapproved by written order of the                    

                                                                                

5   commissioner within 30 days after the date of its submission.               

                                                                                

6   Before disapproval of all or any part of the proposed plan of               

                                                                                

7   operation, the commissioner shall notify the board in what                  

                                                                                

8   respect the plan of operation fails to meet the requirements and            

                                                                                

9   objectives of this section.  If the board fails to submit a                 

                                                                                

10  revised plan of operation that meets the requirements and                   

                                                                                

11  objectives of this section within the 30-day period, the                    

                                                                                

12  commissioner shall enter an order accordingly and shall                     

                                                                                

13  immediately formulate and place into effect a plan consistent               

                                                                                

14  with the requirements and objectives of this section.                       

                                                                                

15      (19) The proposed plan of operation or amendments to the plan               

                                                                                

16  of operation are subject to majority approval by the board,                 

                                                                                

17  ratified by a majority of the membership having a vote, with                

                                                                                

18  voting rights being apportioned according to the premiums charged           

                                                                                

19  in subsection (7)(d) and are subject to approval by the                     

                                                                                

20  commissioner.                                                               

                                                                                

21      (20) Upon approval by the commissioner and ratification by                  

                                                                                

22  the members of the plan submitted, or upon the promulgation of a            

                                                                                

23  plan by the commissioner, each insurer authorized to write                  

                                                                                

24  insurance providing the security required by section 3101(1) or             

                                                                                

25  3103 in this state, as provided in this section, is bound by and            

                                                                                

26  shall formally subscribe to and participate in the plan approved            

                                                                                

27  as a condition of maintaining its authority to transact insurance           


                                                                                

1   in this state.                                                              

                                                                                

2       (21) The association is subject to all the reporting, loss                  

                                                                                

3   reserve, and investment requirements of the commissioner to the             

                                                                                

4   same extent as would a member of the association.                           

                                                                                

5       (22) Premiums charged members by the association shall be                   

                                                                                

6   recognized in the rate-making procedures for insurance rates in             

                                                                                

7   the same manner that expenses and premium taxes are recognized.             

                                                                                

8       (23) The commissioner or an authorized representative of the                

                                                                                

9   commissioner may visit the association at any time and examine              

                                                                                

10  any and all the association's affairs.                                      

                                                                                

11      (24) The association does not have liability for losses                     

                                                                                

12  occurring before July 1, 1978.                                              

                                                                                

13      (25) As used in this section:                                               

                                                                                

14      (a) "Consumer price index" means the percentage of change in                

                                                                                

15  the consumer price index for all urban consumers in the United              

                                                                                

16  States city average for all items for the 24 months prior to                

                                                                                

17  October 1 of the year prior to the July 1 effective date of the             

                                                                                

18  biennial adjustment under subsection (2)(k) as reported by the              

                                                                                

19  United States department of labor, bureau of labor statistics,              

                                                                                

20  and as certified by the commissioner.                                       

                                                                                

21      (b) "Motor vehicle accident policy" means a policy providing                

                                                                                

22  the coverages required under section 3101(1) or 3103.                       

                                                                                

23      (c) "Ultimate loss" means the actual loss amounts that a                    

                                                                                

24  member is obligated to pay and that are paid or payable by the              

                                                                                

25  member, and do not include claim expenses.  An ultimate loss is             

                                                                                

26  incurred by the association on the date that the loss occurs.               

                                                                                

27      Sec. 3114.  (1) Except as provided in subsections (2)  ,                    


                                                                                

1   and (3),  and (5),  a personal protection insurance policy                  

                                                                                

2   described in section 3101(1) or 3103 applies to accidental bodily           

                                                                                

3   injury to the person named in the policy, the person's spouse,              

                                                                                

4   and a relative of either domiciled in the same household, if the            

                                                                                

5   injury arises from a motor vehicle accident or motorcycle                   

                                                                                

6   accident A personal injury insurance policy described in                 

                                                                                

7   section 3103(2) applies to accidental bodily injury to the person           

                                                                                

8   named in the policy, the person's spouse, and a relative of                 

                                                                                

9   either domiciled in the same household, if the injury arises from           

                                                                                

10  a motorcycle accident.  When personal protection insurance                  

                                                                                

11  benefits or personal injury benefits described in section 3103(2)           

                                                                                

12  are payable to or for the benefit of an injured person under his            

                                                                                

13  or her own policy and would also be payable under the policy of             

                                                                                

14  his or her spouse, relative, or relative's spouse, the injured              

                                                                                

15  person's insurer shall pay all of the benefits and is not                   

                                                                                

16  entitled to recoupment from the other insurer.                              

                                                                                

17      (2) A person suffering accidental bodily injury while an                    

                                                                                

18  operator or a passenger of a motor vehicle operated in the                  

                                                                                

19  business of transporting passengers shall receive the personal              

                                                                                

20  protection insurance benefits to which the person is entitled               

                                                                                

21  from the insurer of the motor vehicle.  This subsection does not            

                                                                                

22  apply to a passenger in the following, unless that passenger is             

                                                                                

23  not entitled to personal protection insurance benefits under any            

                                                                                

24  other policy:                                                               

                                                                                

25      (a) A school bus, as defined by the department of education,                

                                                                                

26  providing transportation not prohibited by law.                             

                                                                                

27      (b) A bus operated by a common carrier of passengers                        


                                                                                

1   certified by the department of transportation.                              

                                                                                

2       (c) A bus operating under a government sponsored                            

                                                                                

3   transportation program.                                                     

                                                                                

4       (d) A bus operated by or providing service to a nonprofit                   

                                                                                

5   organization.                                                               

                                                                                

6       (e) A taxicab insured as prescribed in section 3101 or 3102.                

                                                                                

7       (f) A bus operated by a canoe or other watercraft, bicycle,                 

                                                                                

8   or horse livery used only to transport passengers to or from a              

                                                                                

9   destination point.                                                          

                                                                                

10      (3) An employee, his or her spouse, or a relative of either                 

                                                                                

11  domiciled in the same household, who suffers accidental bodily              

                                                                                

12  injury while an occupant of a motor vehicle owned or registered             

                                                                                

13  by the employer, shall receive personal protection insurance                

                                                                                

14  benefits to which the employee is entitled from the insurer of              

                                                                                

15  the furnished vehicle.                                                      

                                                                                

16      (4) Except as provided in subsections (1) to (3), a person                  

                                                                                

17  suffering accidental bodily injury arising from a motor vehicle             

                                                                                

18  accident or motorcycle accident while an occupant of a motor                

                                                                                

19  vehicle or motorcycle shall claim personal protection insurance             

                                                                                

20  benefits from insurers in the following order of priority:                  

                                                                                

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

                                                                                

22  vehicle or motorcycle occupied.                                             

                                                                                

23      (b) The insurer of the operator of the motor vehicle or                     

                                                                                

24  motorcycle occupied.                                                        

                                                                                

25      (5) A person suffering accidental bodily injury arising from                

                                                                                

26  a motor vehicle accident which shows evidence of the involvement            

                                                                                

27  of a motor vehicle while an operator or passenger of a motorcycle           


                                                                                

1   shall claim personal protection insurance benefits from insurers            

                                                                                

2   in the following order of priority:                                         

                                                                                

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

                                                                                

4   vehicle involved in the accident.                                           

                                                                                

5       (b) The insurer of the operator of the motor vehicle involved               

                                                                                

6   in the accident.                                                            

                                                                                

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

                                                                                

8   motorcycle involved in the accident.                                        

                                                                                

9       (d) The motor vehicle insurer of the owner or registrant of                 

                                                                                

10  the motorcycle involved in the accident.                                    

                                                                                

11      (6) If 2 or more insurers are in the same order of priority                 

                                                                                

12  to provide personal protection insurance benefits under                     

                                                                                

13  subsection (5), an insurer paying benefits due is entitled to               

                                                                                

14  partial recoupment from the other insurers in the same order of             

                                                                                

15  priority, together with a reasonable amount of partial recoupment           

                                                                                

16  of the expense of processing the claim, in order to accomplish              

                                                                                

17  equitable distribution of the loss among all of the insurers.               

                                                                                

18      Enacting section 1.  This amendatory act takes effect                       

                                                                                

19  January 1, 2004.