HB-4397, As Passed Senate, June 4, 2019

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 4397

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending sections 3009, 3109a, 3111, 3116, 3135, and 3151 (MCL

500.3009, 500.3109a, 500.3111, 500.3116, 500.3135, and 500.3151),

section 3009 as amended by 2016 PA 346, section 3109a as amended by

2012 PA 454, and section 3135 as amended by 2012 PA 158, and by

adding sections 2111f, 3107c, and 3107d.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2111f. (1) Before July 1, 2020, an insurer that offers

automobile insurance in this state shall file premium rates for

personal protection insurance coverage for automobile insurance

policies effective after July 1, 2020.

(2) Subject to subsections (6) and (7), the premium rates

filed as required by subsection (1), and any subsequent premium

rates filed by the insurer for personal protection insurance

coverage under automobile insurance policies effective before July

2, 2028, must result, as nearly as practicable, in an average

reduction per vehicle from the premium rates for personal

protection insurance coverage that were in effect for the insurer

on May 1, 2019 as follows:

(a) For policies subject to the coverage limits under section

3107c(1)(a), an average 45% or greater reduction per vehicle.

(b) For policies subject to the coverage limits under section

3107c(1)(b), an average 35% or greater reduction per vehicle.

3107c(1)(c), an average 20% or greater reduction per vehicle.

(d) For policies not subject to any coverage limit under

section 3107c(1)(d), an average 10% or greater reduction per

vehicle.

(3) For a policy under which an election under section 3107d

has been made to not maintain coverage for personal protection

insurance benefits payable under section 3107(1)(a), or for a

policy to which an exclusion under section 3109a(2) applies, the

premium rates filed under subsection (1), and any subsequent

premium rates filed by the insurer for personal protection

insurance coverage, must result in no premium charge for coverage

for personal protection insurance benefits payable under section

3107(1)(a).

(4) The director shall review a filing submitted by an insurer

under subsections (1) to (3) for compliance with this section.

Subject to subsection (7), the director shall disapprove a filing

if after review the director determines that the filing does not

result in the premium reductions required by subsections (2) and

(3).

(5) If the director disapproves a premium rate filing under

subsection (4), the insurer shall submit a revised premium rate

filing to the director within 15 days after the disapproval. The

premium rate filing is subject to review in the same manner as an

original premium rate filing under subsection (4).

(6) For policies issued or renewed in the year beginning July

1, 2024 and in the year beginning July 1, 2026, an automobile

insurer that offers automobile insurance in this state shall make

filings demonstrating its compliance with this section.

(7) At any time, an insurer may apply to the director for

approval to file rates that result in a lower premium reduction

level or an exemption from the requirements of subsection (2) and

the director shall approve the application if the rates otherwise

comply with this act and compliance with the premium reductions

required by subsection (2) will result in any of the following:

(a) The insurer reaching the company action level risk-based

capital.

(b) A violation of the Fourteenth Amendment of the United

States Constitution as to the insurer. This subdivision does not

apply after July 1, 2023.

constitution of 1963, as to deprivation of property without due

process. This subdivision does not apply after July 1, 2023.

(8) An insurer shall pass on, in filings to which this section

applies, savings realized from the application of section 3157(2)

to (12) to treatment, products, services, accommodations, or

training rendered to individuals who suffered accidental bodily

injury from motor vehicle accidents that occurred before July 2,

2021. An insurer shall provide the director with all documents and

information requested by the director that the director determines

are necessary to allow the director to evaluate the insurer's

compliance with this subsection. After July 1, 2022, the director

shall review all rate filings to which this section applies for

compliance with this subsection.

(9) This section does not prohibit an increase for any

individual insurance policy premium if the increase results from

applying rating factors as approved under this chapter, including

the requirements of this section.

(10) After July 1, 2020 and before July 2, 2028, an insurer

shall not issue or renew an automobile insurance policy in this

state unless the premium rates filed by the insurer for personal

protection insurance coverage are approved under this section.

(11) For purposes of calculating a personal protection

insurance premium or premium rate under this section, the premium

must include the catastrophic claims assessment imposed under

section 3104.

(12) If subsection (2) or the application of subsection (2) to

any insurer is found to be invalid by a court, the remaining

portions of the amendatory act that added this section are not

severable and shall be deemed invalid and inoperable.

(13) As used in this section:

(a) "Authorized control level RBC" means the number determined

under the risk-based capital formula in accordance with the RBC

report, including risk-based capital instructions adopted by the

National Association of Insurance Commissioners and the director.

(b) "Company action level risk-based capital" means 2 times

the insurer's authorized control level RBC.

as required by the annual statement instructions.

Sec. 3009. (1) An Subject to subsections (5) to (8), an

automobile liability or motor vehicle liability policy ~~insuring~~

that insures 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~~ must 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

all of the following limits:

(a) A Before July 2, 2020, 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 after July 1, 2020, a

limit, exclusive of interest and costs, of not less than

$250,000.00 because of bodily injury to or death of 1 person in any

1 accident.

(b) ~~Subject~~ Before July 2, 2020 and subject to the limit for 1

person in subdivision (a), 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 after July 1, 2020, and subject to the limit for 1

person in subdivision (a), a limit of not less than $500,000.00

because of bodily injury to or death of 2 or more persons in any 1

accident.

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. An exclusion under this subsection is

not 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) If an insurer deletes coverages from an automobile

insurance policy ~~pursuant to~~ under section 3101, the insurer shall

send documentary evidence of the deletion to the insured.

(5) After July 1, 2020, an applicant for or named insured in

the automobile liability or motor vehicle liability policy

described in subsection (1) may choose to purchase lower limits

than required under subsection (1)(a) and (b), but not lower than

$50,000.00 under subsection (1)(a) and $100,000.00 under subsection

(1)(b). To exercise an option under this subsection, the person

shall complete a form issued by the director and provided as

required by section 3107e, that meets the requirements of

subsection (7).

(6) After July 1, 2020, on application for the issuance of a

new policy or renewal of an existing policy, an insurer shall do

all of the following:

(a) Provide the applicant or named insured the liability

options available under this section.

(b) Provide the applicant or named insured a price for each

option available under this section.

under this subsection.

(7) The form required under subsection (5) must do all of the

following:

(a) State, in a conspicuous manner, the risks of choosing

liability limits lower than those required by subsection (1)(a) and

(b).

(b) Provide a way for the person to mark the form to

acknowledge that he or she has received a list of the liability

options available under this section and the price for each option.

acknowledge that he or she has read the form and understands the

risks of choosing the lower liability limits.

(d) Allow the person to sign the form.

(8) After July 1, 2020, if an insurance policy is issued or

renewed as described in subsection (1) and the person named in the

policy has not made an effective choice under subsection (5), the

limits under subsection (1)(a) and (b) apply to the policy.

Sec. 3107c. (1) Except as provided in sections 3107d and

3109a, and subject to subsection (5), for an insurance policy that

provides the security required under section 3101(1) and is issued

or renewed after July 1, 2020, the applicant or named insured

shall, in a way required under section 3107e and on a form approved

by the director, select 1 of the following coverage levels for

personal protection insurance benefits under section 3107(1)(a):

(a) A limit of $50,000.00 per individual per loss occurrence

for any personal protection insurance benefits under section

3107(1)(a). The selection of a limit under this subdivision is only

available to an applicant or named insured if both of the following

apply:

(i) The applicant or named insured is enrolled in Medicaid, as

that term is defined in section 3157.

(ii) The applicant's or named insured's spouse and any

relative of either who resides in the same household has qualified

health coverage, as that term is defined in section 3107d, is

enrolled in Medicaid, or has coverage for the payment of benefits

under section 3107(1)(a) from an insurer that provides the security

required by section 3101(1).

(b) A limit of $250,000.00 per individual per loss occurrence

for any personal protection insurance benefits under section

3107(1)(a).

for any personal protection insurance benefits under section

3107(1)(a).

(d) No limit for personal protection insurance benefits under

section 3107(1)(a).

(2) The form required under subsection (1) must do all of the

following:

(a) State, in a conspicuous manner, the benefits and risks

associated with each coverage option.

(b) Provide a way for the applicant or named insured to mark

the form to acknowledge that he or she has read the form and

understands the options available.

make the selection of coverage level under subsection (1).

(d) Require the applicant or named insured to sign the form.

(3) If an insurance policy is issued or renewed as described

in subsection (1) and the applicant or named insured has not made

an effective selection under subsection (1) but a premium or

premium installment has been paid, there is a rebuttable

presumption that the amount of the premium or installment paid

accurately reflects the level of coverage applicable to the policy

under subsection (1).

(4) If an insurance policy is issued or renewed as described

in subsection (1), the applicant or named insured has not made an

effective selection under subsection (1), and a presumption under

subsection (3) does not apply, subsection (1)(d) applies to the

policy.

(5) The coverage level selected under subsection (1) applies

to the named insured, the named insured's spouse, and a relative of

either domiciled in the same household, and any other person with a

right to claim personal protection insurance benefits under the

policy.

(6) If benefits are payable under section 3107(1)(a) under 2

or more insurance policies, the benefits are only payable up to an

aggregate coverage limit that equals the highest available coverage

limit under any 1 of the policies.

(7) This section applies for a transportation network company

vehicle, but an applicant or named insured that is a transportation

network company shall only select limits under either subsection

(1)(b), (c), or (d). As used in this subsection:

(a) "Transportation network company" means that term as

defined in section 2 of the limousine, taxicab, and transportation

network company act, 2016 PA 345, MCL 257.2102.

(b) "Transportation network company vehicle" means that term

as defined in section 3114.

(8) An insurer shall offer, for a policy that provides the

security required under section 3101(1) to which a limit under

subsection (1)(a) to (c) applies, a rider that will provide

coverage for attendant care in excess of the applicable limit.

Sec. 3107d. (1) For an insurance policy that provides the

security required under section 3101(1) and is issued or renewed

after July 1, 2020, the applicant or named insured may, in a way

required under section 3107e and on a form approved by the

director, elect to not maintain coverage for personal protection

insurance benefits payable under section 3107(1)(a) if the

applicant or named insured is a qualified person, and if the

applicant's or named insured's spouse and any relative of either

that resides in the same household have qualified health coverage

or have coverage for benefits payable under section 3107(1)(a) from

an insurer that provides the security required by section 3101(1).

(2) An applicant or named insured shall, when requesting

issuance or renewal of a policy under subsection (1), provide to

the insurer a document from the person that provides the qualified

health coverage stating the names of all persons covered under the

qualified health coverage.

(3) The form required under subsection (1) must do all of the

following:

(a) Require the applicant or named insured to mark the form to

certify whether all persons required to be qualified persons under

subsection (1) are qualified persons.

(b) Disclose in a conspicuous manner that qualified persons

are not obligated to but may purchase coverage for personal

protection insurance coverage benefits payable under section

3107(1)(a).

available under section 3107c.

(d) State, in a conspicuous manner, the benefits and risks

associated with not maintaining the coverage.

(e) State, in a conspicuous manner, that if during the term of

the policy the qualified health coverage ceases, the person has 30

days after the effective date of the termination of qualified

health coverage to obtain insurance that provides coverage under

section 3107(1)(a) or the person will be excluded from all personal

protection insurance coverage benefits under section 3107(1)(a)

during the period in which coverage under this section was not

maintained.

(f) Provide a way for the applicant or named insured to mark

the form to acknowledge that he or she has read the form and

understands it and that he or she understands the options available

to him or her.

(g) If all persons required to be qualified persons under

subsection (1) are qualified persons, provide the person a way to

mark the form to elect to not maintain the coverage.

(h) Require the applicant or named insured to sign the form.

(4) If an insurance policy is issued or renewed as described

in subsection (1) and the applicant or named insured has not made

an effective election under subsection (1), the policy is

considered to provide personal protection benefits under section

3107c(1)(d).

(5) An election under this section applies to the applicant or

named insured, the applicant or named insured's spouse, a relative

of either domiciled in the same household, and any other person who

would have had a right to claim personal protection insurance

benefits under the policy but for the election.

(6) If, during the term of an insurance policy under which

coverage for personal protection insurance benefits payable under

section 3107(1)(a) are not maintained under this section, the

persons required to have qualified health coverage under subsection

(1) cease to have qualified health coverage, all of the following

apply under this subsection:

(a) Within 30 days after the effective date of the termination

of qualified health coverage, the named insured shall obtain

insurance that includes coverage under section 3107(1)(a).

(b) An insurer that issues policies that provide the security

required by section 3101(1) shall not refuse to prospectively

insure, limit coverage available to, charge a reinstatement fee to,

or increase the insurance premiums for a person who is an eligible

person, as that term is defined in section 2103, solely because the

person previously failed to obtain insurance that provides coverage

for benefits under section 3107(1)(a) in the time required under

subdivision (a).

insurance as required under subdivision (a) and a person to whom

the election under this section applies as described in subsection

(5) suffers accidental bodily injury arising from a motor vehicle

accident within the 30-day period, unless the injured person is

entitled to coverage under some other policy, the injured person is

not entitled to be paid personal protection insurance benefits

under section 3107(1)(a) for the injury but is entitled to claim

benefits under the assigned claims plan.

(7) As used in this section:

(a) "Consumer Price Index" means the most comprehensive index

of consumer prices available for this state from the United States

Department of Labor, Bureau of Labor Statistics.

(b) "Qualified health coverage" means either of the following:

(i) Other health or accident coverage to which both of the

following apply:

(A) The coverage does not exclude or limit coverage for

injuries related to motor vehicle accidents.

(B) Any annual deductible for the coverage is $6,000.00 or

less per individual. The director shall adjust the amount in this

sub-subparagraph on July 1 of each year by the percentage change in

the medical component of the Consumer Price Index for the preceding

calendar year. However, the director shall not make the adjustment

unless the adjustment, or the total of the adjustment and previous

unadded adjustments, is $500.00 or more.

(ii) Coverage under parts A and B of the federal Medicare

program established under subchapter XVIII of the social security

act, 42 USC 1395 to 1395lll.

coverage under subdivision (b)(ii).

Sec. 3109a. (1) An insurer ~~providing~~ that provides personal

protection insurance benefits under this chapter may offer ~~, at~~

~~appropriately reduced premium rates,~~ deductibles and exclusions

reasonably related to other health and accident coverage on the

insured. Any deductibles and exclusions offered under this section

must be offered at a reduced premium that reflects reasonably

anticipated reductions in losses, expenses, or both, are subject to

prior approval by the ~~commissioner~~ director, and ~~shall~~ must apply

only to benefits payable to the person named in the policy, the

spouse of the insured, and any relative of either domiciled in the

same household.

(2) For an insurance policy issued or renewed after July 1,

2020, the insurer shall offer to an applicant or named insured that

selects a personal protection benefit limit under section

3107c(1)(b) an exclusion related to qualified health coverage. All

of the following apply to that exclusion:

(a) If the named insured has qualified health coverage as

defined in section 3107d(7)(b)(i) that will cover injuries that

occur as the result of a motor vehicle accident and if the named

insured's spouse and any relatives of either the named insured or

the spouse domiciled in the same household have qualified health

coverage that will cover injuries that occur as the result of a

motor vehicle accident, the premium for the personal protection

insurance benefits payable under section 3107(1)(a) under the

policy must be reduced by 100%.

(b) If a member, but not all members, of the household covered

by the insurance policy has qualified health coverage that will

cover injuries that occur as the result of a motor vehicle

accident, the insurer shall offer a reduced premium that reflects

reasonably anticipated reductions in losses, expenses, or both. The

reduction must be in addition to the rate rollback required by

section 2111f and the share of the premium reduction for the policy

attributable to any person with qualified health coverage must be

100%.

exclusion under this subsection is not eligible for personal

protection benefits under the insurance policy.

(d) If a person subject to an exclusion under this subsection

is no longer covered by the qualified health coverage, the named

insured shall notify the insurer that the named insured or resident

relative is no longer eligible for an exclusion. All of the

following apply under this subdivision:

(i) The named insured shall, within 30 days after the

effective date of the termination of the qualified health coverage,

obtain insurance that provides the security required under section

3101(1) that includes coverage that was excluded under this

subsection.

(ii) During the period described in subparagraph (i), if any

person excluded suffers accidental bodily injury arising from a

motor vehicle accident, the person is entitled to claim benefits

under the assigned claims plan.

(e) If the named insured does not obtain insurance that

provides the security required under section 3101(1) that includes

the coverage excluded under this subsection during the period

described in subdivision (d)(i) and the named insured or any person

excluded under the policy suffers accidental bodily injury arising

from a motor vehicle accident, unless the injured person is

entitled to coverage under some other policy, the injured person is

not entitled to be paid personal protection insurance benefits

under section 3107(1)(a) for the injury that occurred during the

period in which coverage under this section was excluded.

(3) An automobile insurer shall not refuse to prospectively

insure, limit coverage available to, charge a reinstatement fee

for, or increase the premiums for automobile insurance for an

eligible person, as that term is defined in section 2103, solely

because the person previously failed to obtain insurance that

provides the security required under section 3101(1) in the time

period provided under subsection (2)(d)(i).

(4) The amount of a premium reduction under subsection (1)

must appear in a conspicuous manner in the declarations for the

policy, and be expressed as a dollar amount or a percentage.

(5) As used in this section, "qualified health coverage" means

that term as defined in section 3107d.

Sec. 3111. Personal protection insurance benefits are payable

for accidental bodily injury suffered in an accident occurring out

of this state, if the accident occurs within the United States, its

territories and possessions, or in Canada, and the person whose

injury is the basis of the claim was at the time of the accident a

named insured under a personal protection insurance policy, ~~his~~ the

spouse of a named insured, a relative of either domiciled in the

same household, or an occupant of a vehicle involved in the

accident, ~~whose~~ if the occupant was a resident of this state or if

the owner or registrant of the vehicle was insured under a personal

protection insurance policy or ~~has~~ provided security approved by

the secretary of state under ~~subsection (4) of~~ section

~~3101.~~3101(5).

Sec. 3116. (1) A subtraction from personal protection

insurance benefits ~~shall~~ must not be made because of the value of a

claim in tort based on the same accidental bodily injury.

(2) A subtraction from or reimbursement for personal

protection insurance benefits paid or payable under this chapter

~~shall~~ may be made only if recovery is realized ~~upon~~ on a tort claim

arising from an accident ~~occurring~~ that occurred outside this

state, a tort claim brought ~~within~~ in this state against the owner

or operator of a motor vehicle with respect to which the security

required by section 3101 ~~(3) and (4)~~ was not in effect, or a tort

claim brought ~~within~~ in this state based on intentionally caused

harm to persons or property, and ~~shall~~ may be made only to the

extent that the recovery realized by the claimant is for damages

for which the claimant has received or would otherwise be entitled

to receive personal protection insurance benefits. A subtraction

~~shall~~ may be made only to the extent of the recovery, exclusive of

reasonable ~~attorneys'~~ attorney fees and other reasonable expenses

incurred in effecting the recovery. If personal protection

insurance benefits have already been received, the claimant shall

repay to the insurers out of the recovery ~~a sum~~ an amount equal to

the benefits received, but not more than the recovery exclusive of

reasonable ~~attorneys'~~ attorney fees and other reasonable expenses

incurred in effecting the recovery. The insurer ~~shall have~~ has a

lien on the recovery to this extent. A recovery by an injured

person or his or her estate for loss suffered by the person ~~shall~~

may not be subtracted in calculating benefits due a dependent after

the death and a recovery by a dependent for loss suffered by the

dependent after the death ~~shall~~ may not be subtracted in

calculating benefits due the injured person.

(3) A personal protection insurer with a right of

reimbursement under subsection (1), if suffering loss from

inability to collect reimbursement out of a payment received by a

claimant ~~upon~~ on a tort claim, is entitled to indemnity from a

person who, with notice of the insurer's interest, made the payment

to the claimant without making the claimant and the insurer joint

payees as their interests may appear or without obtaining the

insurer's consent to a different method of payment.

(4) A subtraction or reimbursement ~~shall~~ is not be due the

claimant's insurer from that portion of any recovery to the extent

that recovery is realized for noneconomic loss as provided in

section 3135(1) and (2)(b) or for allowable expenses, work loss,

and survivor's loss as defined in sections 3107 to 3110 in excess

of the amount recovered by the claimant from his or her insurer.

Sec. 3135. (1) A person remains subject to tort liability for

noneconomic loss caused by his or her ownership, maintenance, or

use of a motor vehicle only if the injured person has suffered

death, serious impairment of body function, or permanent serious

disfigurement.

(2) For a cause of action for damages ~~pursuant to~~ under

subsection (1) ~~filed on or after July 26, 1996,~~ or (3)(d), all of

the following apply:

(a) The issues of whether the injured person has suffered

serious impairment of body function or permanent serious

disfigurement are questions of law for the court if the court finds

either of the following:

(i) There is no factual dispute concerning the nature and

extent of the person's injuries.

(ii) There is a factual dispute concerning the nature and

extent of the person's injuries, but the dispute is not material to

the determination whether the person has suffered a serious

impairment of body function or permanent serious disfigurement.

However, for a closed-head injury, a question of fact for the jury

is created if a licensed allopathic or osteopathic physician who

regularly diagnoses or treats closed-head injuries testifies under

oath that there may be a serious neurological injury.

(b) Damages ~~shall~~ must be assessed on the basis of comparative

fault, except that damages ~~shall~~ must not be assessed in favor of a

party who is more than 50% at fault.

was operating his or her own vehicle at the time the injury

occurred and did not have in effect for that motor vehicle the

security required by section ~~3101~~ 3101(1) at the time the injury

occurred.

(3) Notwithstanding any other provision of law, tort liability

arising from the ownership, maintenance, or use within this state

of a motor vehicle with respect to which the security required by

section ~~3101~~ 3101(1) was in effect is abolished except as to:

(a) Intentionally caused harm to persons or property. Even

though a person knows that harm to persons or property is

substantially certain to be caused by his or her act or omission,

the person does not cause or suffer that harm intentionally if he

or she acts or refrains from acting for the purpose of averting

injury to any person, including himself or herself, or for the

purpose of averting damage to tangible property.

(b) Damages for noneconomic loss as provided and limited in

subsections (1) and (2).

loss as defined in sections 3107 to 3110, including all future

allowable expenses and work loss, in excess of any applicable limit

under section 3107c or the daily, monthly, and 3-year limitations

contained in those sections, or without limit for allowable

expenses if an election to not maintain that coverage was made

under section 3107d or if an exclusion under section 3109a(2)

applies. The party liable for damages is entitled to an exemption

reducing his or her liability by the amount of taxes that would

have been payable on account of income the injured person would

have received if he or she had not been injured.

(d) Damages for economic loss by a nonresident. ~~in excess of~~

~~the personal protection insurance benefits provided under section~~

~~3163(4). Damages under this subdivision are not recoverable to the~~

~~extent that benefits covering the same loss are available from~~

~~other sources, regardless of the nature or number of benefit~~

~~sources available and regardless of the nature or form of the~~

~~benefits.~~However, to recover under this subdivision, the

nonresident must have suffered death, serious impairment of body

function, or permanent serious disfigurement.

(e) Damages up to $1,000.00 to a motor vehicle or, for motor

vehicle accidents that occur after July 1, 2020, up to $3,000.00 to

a motor vehicle, to the extent that the damages are not covered by

insurance. An action for damages under this subdivision ~~shall~~ must

be conducted as provided in subsection (4).

(4) All of the following apply to an action for damages under

subsection (3)(e):

(a) Damages ~~shall~~ must be assessed on the basis of comparative

fault, except that damages ~~shall~~ must not be assessed in favor of a

party who is more than 50% at fault.

(b) Liability is not a component of residual liability, as

prescribed in section 3131, for which maintenance of security is

required by this act.

possible, in the small claims division of the district court or the

municipal court. If the defendant or plaintiff removes the action

to a higher court and does not prevail, the judge may assess costs.

(d) A decision of the court is not res judicata in any

proceeding to determine any other liability arising from the same

circumstances that gave rise to the action.

(e) Damages ~~shall~~ must not be assessed if the damaged motor

vehicle was being operated at the time of the damage without the

security required by section ~~3101.~~3101(1).

(5) As used in this section, "serious impairment of body

function" means an impairment that satisfies all of the following

requirements:

(a) It is objectively manifested, meaning it is observable or

perceivable from actual symptoms or conditions by someone other

than the injured person.

(b) It is an impairment of an important body function, ~~that~~

which is a body function of great value, significance, or

consequence to the injured person.

his or her normal life, meaning it has had an influence on some of

the person's capacity to live in his or her normal manner of

living. Although temporal considerations may be relevant, there is

no temporal requirement for how long an impairment must last. This

examination is inherently fact and circumstance specific to each

injured person, must be conducted on a case-by-case basis, and

requires comparison of the injured person's life before and after

the incident.

Sec. 3151. (1) ~~When~~ If the mental or physical condition of a

person is material to a claim that has been or may be made for past

or future personal protection insurance benefits, at the request of

an insurer the person shall submit to mental or physical

examination by physicians. A personal protection insurer may

include reasonable provisions that are in accord with this section

in a personal protection insurance policy for mental and physical

examination of persons claiming personal protection insurance

benefits.

(2) A physician who conducts a mental or physical examination

under this section must be licensed as a physician in this state or

another state and meet the following criteria, as applicable:

(a) If care is being provided to the person to be examined by

a specialist, the examining physician must specialize in the same

specialty as the physician providing the care, and if the physician

providing the care is board certified in the specialty, the

examining physician must be board certified in that specialty.

(b) During the year immediately preceding the examination, the

examining physician must have devoted a majority of his or her

professional time to either or both of the following:

(i) The active clinical practice of medicine and, if

subdivision (a) applies, the active clinical practice relevant to

the specialty.

(ii) The instruction of students in an accredited medical

school or in an accredited residency or clinical research program

for physicians and, if subdivision (a) applies, the instruction of

students is in the specialty.

Enacting section 1. Section 3135 of the insurance code of

1956, 1956 PA 218, MCL 500.3135, as amended by this amendatory act,

is intended to codify and give full effect to the opinion of the

Michigan supreme court in McCormick v Carrier, 487 Mich 180 (2010).