May 26, 2015, Introduced by Rep. Iden and referred to the Committee on Commerce and Trade.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 3009, 3037, and 3101 (MCL 500.3009, 500.3037,
and 500.3101), section 3009 as amended by 1988 PA 43, section 3037
as amended by 1980 PA 461, and section 3101 as amended by 2014 PA
492, and by adding section 3017.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3009. (1) An automobile liability or motor vehicle
liability policy insuring against loss resulting from liability
imposed by law for property damage, bodily injury, or death
suffered by any person arising out of the ownership, maintenance,
or use of a motor vehicle shall not be delivered or issued for
delivery in this state with respect to any motor vehicle registered
or principally garaged in this state unless the liability coverage
is
subject to a all of the
following limits:
(a) A limit, exclusive of interest and costs, of not less than
$20,000.00 because of bodily injury to or death of 1 person in any
1
accident. , and subject
(b)
Subject to that the limit
for 1 person in subdivision (a),
to
a limit of not less than $40,000.00
because of bodily injury to
or
death of 2 or more persons in any 1 accident. , and to a
(c) A limit of not less than $10,000.00 because of injury to
or destruction of property of others in any accident.
(2) If authorized by the insured, automobile liability or
motor vehicle liability coverage may be excluded when a vehicle is
operated
by a named person. Such An
exclusion shall under this
subsection
is not be valid unless the
following notice is on the
face of the policy or the declaration page or certificate of the
policy and on the certificate of insurance:
Warning—when a named excluded person operates a vehicle all
liability coverage is void—no one is insured. Owners of the vehicle
and others legally responsible for the acts of the named excluded
person remain fully personally liable.
(3) A liability policy described in subsection (1) may exclude
coverage for liability as provided in section 3017.
(4) (3)
If an insurer deletes coverages
from an automobile
insurance policy pursuant to section 3101, the insurer shall send
documentary evidence of the deletion to the insured.
Sec. 3017. (1) An authorized insurer that issues an insurance
policy insuring a personal vehicle may exclude all coverage
afforded under the policy for any loss or injury that occurs while
a transportation network company driver is logged on to a
transportation network company's digital network or while a
transportation network company driver is providing a prearranged
ride. All of the following coverages may be excluded under this
section:
(a) Residual liability insurance required under sections 3009
and 3101.
(b) Personal protection and property protection insurance
required under section 3101.
(c) Uninsured and underinsured motorist coverage.
(d) Comprehensive coverage.
(e) Collision coverage, including coverage required to be
offered under section 3037.
(2) This section does not require an automobile insurance
policy to provide coverage under any of the following
circumstances:
(a) While a transportation network company driver is logged on
to a transportation network company's digital network.
(b) While a transportation network company driver is engaged
in providing a prearranged ride.
(c) While a transportation network company driver otherwise
uses a vehicle to transport passengers for compensation.
(3) This section does not preclude an insurer from providing
coverage for a transportation network company driver's personal
vehicle by contract or endorsement.
(4) An insurer that excludes the coverage described in
subsection (1) does not have a duty to defend or indemnify for any
claim that is expressly excluded. This section does not invalidate
or limit an exclusion contained in a policy, including a policy in
use or approved for use in this state before the effective date of
this section, that excludes coverage for vehicles that are used to
carry individuals or property for a charge or that are available
for hire by the public. An insurer that defends or indemnifies for
a claim against a transportation network company driver who is
excluded under the terms of the policy has a right of contribution
against other insurers that provided automobile insurance to the
transportation network company driver in satisfaction of the
coverage requirements of section 17 of the transportation network
company act at the time of the loss.
(5) During an investigation of whether a claim is covered
under an insurance policy, a transportation network company and any
insurer that potentially provides coverage under section 17 of the
transportation network company act shall cooperate to facilitate
the exchange of relevant information with persons who are directly
involved and any insurer of the transportation network company
driver. Relevant information required to be exchanged under this
subsection includes, but is not limited to, all of the following:
(a) The times that the transportation network company driver
logged on to and logged off of the transportation network company's
digital network during the 12 hours preceding the accident and the
12 hours following the accident.
(b) A clear description of the coverage, exclusions, and
limits under any insurance policy maintained as required by section
17 of the transportation network company act.
(6) As used in this section, all of the following terms mean
those terms as defined in section 3 of the transportation network
company act:
(a) "Digital network".
(b) "Personal vehicle".
(c) "Prearranged ride".
(d) "Transportation network company".
(e) "Transportation network company driver".
(f) "Transportation network company rider".
Sec. 3037. (1) At the time a new applicant for the insurance
required by section 3101 for a private passenger nonfleet
automobile makes an initial written application to the insurer, an
insurer shall offer both of the following collision coverages to
the applicant:
(a)
Limited collision coverage, which shall must pay for
collision damage to the insured vehicle without a deductible amount
when
if the operator of the vehicle is not substantially at
fault
in the accident from which the damage arose.
(b)
Broad form collision coverage, which shall must pay for
collision damage to the insured vehicle regardless of fault, with
deductibles
in such the amounts as may be approved by the
commissioner,
director, which deductibles shall must be
waived if
the operator of the vehicle is not substantially at fault in the
accident from which the damage arose.
(2)
In addition to the coverages offered pursuant to under
subsection (1), standard and limited collision coverage may be
offered
with deductibles as approved by the commissioner.director.
(3) An insurer may limit collision coverage offered under this
section as provided in section 3017.
(4) (3)
Where If the applicant is required by the insurer to
sign the written application form described in subsection (1), and
if the applicant chooses to reject both of the collision coverages,
or limited collision without a deductible, offered under subsection
(1),
the rejection shall must be made in writing, either on a
separate
form, or as part of the application, or in some
combination
thereof, of these, as approved by the commissioner.
director.
The rejection statement shall must inform
the applicant
of
his or her rights in the event of if there is damage to the
insured vehicle under the alternative coverage option selected.
(5) (4)
In the case of If a written application is made by
mail, and if the applicant fails to sign or return a written
rejection
statement as required by subsection (3), (4), the
requirements
of subsection (3) shall be (4)
are considered to have
been
be satisfied with respect to the insurer if all of the
following occur:
(a) The application provides the applicant with an opportunity
to select the coverages required to be offered under subsection
(1).
(b) The applicant is requested to sign the rejection
statement, either as part of the application or as a separate form
issued with the application, if the applicant fails to select
either of the coverages specified in subsection (1).
(c) The applicant signed the application as otherwise required
by the insurer.
(6) (5)
At the time of the initial written
application
specified
described in subsection (1), an agent or insurer shall
provide the applicant with a written explanation of collision
coverage options in easily understandable language, if that
information is not contained in the application form.
(7) (6)
At least annually in conjunction
with the renewal of a
private passenger nonfleet automobile insurance policy, or at the
time of an addition, deletion, or substitution of a vehicle under
an existing policy, other than a group policy, an insurer shall
inform
the policyholder, on a form approved by the commissioner,
director, of all of the following:
(a) The current status of collision coverage, if any, for the
vehicle or vehicles affected by the renewal or change and the
rights
of the insured in the event of damages to the insured
vehicle
under the current coverage if the vehicle is damaged.
(b) The collision coverages available under the policy and the
rights
of the insured in the event of damage to the insured vehicle
under each collision option if the vehicle is damaged.
(c) Procedures for the policyholder to follow if he or she
wishes to change the current collision coverage.
(8) (7)
As used in this section:
(a) "Collision damage" does not include losses customarily
insured under comprehensive coverages.
(b) "Substantially at fault" means a person's action or
inaction was more than 50% of the cause of the accident.
(8)
This section shall take effect March 1, 1980.
Sec. 3101. (1) The owner or registrant of a motor vehicle
required to be registered in this state shall maintain security for
payment of benefits under personal protection insurance, property
protection insurance, and residual liability insurance. Security is
only required to be in effect during the period the motor vehicle
is driven or moved on a highway. Notwithstanding any other
provision in this act, an insurer that has issued an automobile
insurance policy on a motor vehicle that is not driven or moved on
a highway may allow the insured owner or registrant of the motor
vehicle to delete a portion of the coverages under the policy and
maintain the comprehensive coverage portion of the policy in
effect.
(2) As used in this chapter:
(a) "Automobile insurance" means that term as defined in
section 2102.
(b) "Commercial quadricycle" means a vehicle to which all of
the following apply:
(i) The vehicle has fully operative pedals for propulsion
entirely by human power.
(ii) The vehicle has at least 4 wheels and is operated in a
manner similar to a bicycle.
(iii) The vehicle has at least 6 seats for passengers.
(iv) The vehicle is designed to be occupied by a driver and
powered either by passengers providing pedal power to the drive
train of the vehicle or by a motor capable of propelling the
vehicle in the absence of human power.
(v) The vehicle is used for commercial purposes.
(vi) The vehicle is operated by the owner of the vehicle or an
employee of the owner of the vehicle.
(c) "Golf cart" means a vehicle designed for transportation
while playing the game of golf.
(d) "Highway" means highway or street as that term is defined
in section 20 of the Michigan vehicle code, 1949 PA 300, MCL
257.20.
(e) "Moped" means that term as defined in section 32b of the
Michigan vehicle code, 1949 PA 300, MCL 257.32b.
(f) "Motorcycle" means a vehicle that has a saddle or seat for
the use of the rider, is designed to travel on not more than 3
wheels in contact with the ground, and is equipped with a motor
that exceeds 50 cubic centimeters piston displacement. For purposes
of this subdivision, the wheels on any attachment to the vehicle
are not considered as wheels in contact with the ground. Motorcycle
does not include a moped or an ORV.
(g) "Motorcycle accident" means a loss that involves the
ownership, operation, maintenance, or use of a motorcycle as a
motorcycle, but does not involve the ownership, operation,
maintenance, or use of a motor vehicle as a motor vehicle.
(h) "Motor vehicle" means a vehicle, including a trailer, that
is operated or designed for operation on a public highway by power
other than muscular power and has more than 2 wheels. Motor vehicle
does not include any of the following:
(i) A motorcycle.
(ii) A moped.
(iii) A farm tractor or other implement of husbandry that is
not subject to the registration requirements of the Michigan
vehicle code under section 216 of the Michigan vehicle code, 1949
PA 300, MCL 257.216.
(iv) An ORV.
(v) A golf cart.
(vi) A power-driven mobility device.
(vii) A commercial quadricycle.
(i) "Motor vehicle accident" means a loss that involves the
ownership, operation, maintenance, or use of a motor vehicle as a
motor vehicle regardless of whether the accident also involves the
ownership, operation, maintenance, or use of a motorcycle as a
motorcycle.
(j) "ORV" means a motor-driven recreation vehicle designed for
off-road use and capable of cross-country travel without benefit of
road or trail, on or immediately over land, snow, ice, marsh,
swampland, or other natural terrain. ORV includes, but is not
limited to, a multitrack or multiwheel drive vehicle, a motorcycle
or related 2-wheel, 3-wheel, or 4-wheel vehicle, an amphibious
machine, a ground effect air cushion vehicle, an ATV as defined in
section 81101 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.81101, or other means of transportation
deriving motive power from a source other than muscle or wind. ORV
does not include a vehicle described in this subdivision that is
registered
for use upon on a public highway and has the security
described
in section 3101 required
under subsection (1) or section
3103 in effect.
(k) "Owner" means any of the following:
(i) A person renting a motor vehicle or having the use of a
motor vehicle, under a lease or otherwise, for a period that is
greater than 30 days.
(ii) A person renting a motorcycle or having the use of a
motorcycle under a lease for a period that is greater than 30 days,
or otherwise for a period that is greater than 30 consecutive days.
A person who borrows a motorcycle for a period that is less than 30
consecutive days with the consent of the owner is not an owner
under this subparagraph.
(iii) A person that holds the legal title to a motor vehicle
or motorcycle, other than a person engaged in the business of
leasing motor vehicles or motorcycles that is the lessor of a motor
vehicle or motorcycle under a lease that provides for the use of
the motor vehicle or motorcycle by the lessee for a period that is
greater than 30 days.
(iv) A person that has the immediate right of possession of a
motor vehicle or motorcycle under an installment sale contract.
(l) "Power-driven mobility device" means a wheelchair or other
mobility device powered by a battery, fuel, or other engine and
designed to be used by an individual with a mobility disability for
the purpose of locomotion.
(m) "Registrant" does not include a person engaged in the
business of leasing motor vehicles or motorcycles that is the
lessor of a motor vehicle or motorcycle under a lease that provides
for the use of the motor vehicle or motorcycle by the lessee for a
period that is longer than 30 days.
(3) Security required by subsection (1) may be provided under
a policy issued by an authorized insurer that affords insurance for
the payment of benefits described in subsection (1). A policy of
insurance represented or sold as providing security is considered
to provide insurance for the payment of the benefits.
(4) Security required by subsection (1) may be provided by any
other method approved by the secretary of state as affording
security equivalent to that afforded by a policy of insurance, if
proof of the security is filed and continuously maintained with the
secretary of state throughout the period the motor vehicle is
driven or moved on a highway. The person filing the security has
all the obligations and rights of an insurer under this chapter.
When the context permits, "insurer" as used in this chapter,
includes a person that files the security as provided in this
section.
(5) An insurer that issues a policy that provides the security
required under subsection (1) may exclude coverage under the policy
as provided in section 3017.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 4637 (request no.
02043'15) of the 98th Legislature is enacted into law.