HOUSE BILL No. 4963


     June 14, 2001, Introduced by Rep. Frank and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 3107 (MCL 500.3107), as amended by 1991 PA

   191.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 3107.  (1) Except as provided in subsection (2), per-

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      sonal protection insurance benefits are payable for the

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      following:

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           (a) Allowable expenses consisting of all reasonable charges

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      incurred for reasonably necessary products, services, and accom-

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      modations for an injured person's care, recovery, or

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      rehabilitation.  Allowable expenses within personal protection

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      insurance coverage shall not include charges for a hospital room

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      in excess of a reasonable and customary charge for semiprivate

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      accommodations except if the injured person requires special or


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      intensive care, or for funeral and burial expenses in EXCESS OF

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      the amount set forth in the policy which shall not be less than

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      $1,750.00 or more than $5,000.00.

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           (b) Work loss consisting of loss of income from work an

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      injured person would have performed  during the first 3 years

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      after the date of the accident  if he or she had not been

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      injured.  WORK LOSS COVERAGE IS AVAILABLE FOR A PERIOD THAT

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      TOTALS NOT MORE THAN 36 MONTHS AND MAY BE APPLIED IN CONSECUTIVE

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      DAILY INCREMENTS OR IN INTERMITTENT DAILY INCREMENTS SO LONG AS

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      THE WORK LOSS APPLIES TO THE ORIGINAL INJURY. Work loss does not

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      include any loss after the date on which the injured person

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      dies.  Because the benefits received from personal protection

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      insurance for loss of income are not taxable income, the benefits

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      payable for  such  THIS loss of income shall be reduced 15%

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      unless the claimant presents to the insurer in support of his or

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      her claim reasonable proof of a lower value of the income tax

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      advantage in his or her case, in which case the lower value

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       shall apply  APPLIES.  Beginning March 30, 1973, the benefits

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      payable for work loss sustained in a single 30-day period and the

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      income earned by an injured person for work during the same

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      period together shall not exceed $1,000.00, which maximum shall

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      apply pro rata to any lesser period of work loss.  Beginning

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      October 1, 1974, the maximum shall be adjusted annually to

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      reflect changes in the cost of living under rules prescribed by

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      the commissioner but any change in the maximum  shall apply

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      APPLIES only to benefits arising out of accidents occurring

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       subsequent to  AFTER the date of change in the maximum.



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           (c) Expenses not exceeding $20.00 per day, reasonably

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      incurred in obtaining ordinary and necessary services in lieu of

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      those that, if he or she had not been injured, an injured person

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      would have performed during the first 3 years after the date of

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      the accident, not for income but for the benefit of himself or

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      herself or of his or her dependent.

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           (2) A person who is 60 years of age or older and in the

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      event of an accidental bodily injury would not be eligible to

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      receive work loss benefits under subsection (1)(b) may waive cov-

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      erage for work loss benefits by signing a waiver on a form pro-

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      vided by the insurer.  An insurer shall offer a reduced premium

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      rate to a person who waives coverage under this subsection for

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      work loss benefits.  Waiver of coverage for work loss benefits

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      applies only to work loss benefits payable to the person or per-

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      sons who have signed the waiver form.

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           Enacting section 1.  Section 3107 of the insurance code of

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      1956, 1956 PA 218, MCL 500.3107, as amended by this amendatory

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      act is retroactive and applies to accidents occurring on and

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      after January 1, 1992.



















   00843'01          Final page.                            DKH