HB-5559, As Passed Senate, June 27, 2008

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5559

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending sections 2418, 2618, and 3101 (MCL 500.2418, 500.2618,

and 500.3101), section 2418 as amended by 1993 PA 200 and section

3101 as amended by 1988 PA 126.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2418. If at any time after approval of any filing either

by act or order of the commissioner or by operation of law, or

before approval of a filing made by a worker's compensation insurer

controlled by a nonprofit health care corporation formed operating

pursuant to the nonprofit health care corporation reform act, Act

No. 350 of the Public Acts of 1980, being sections 550.1101 to

550.1704 of the Michigan Compiled Laws 1980 PA 350, MCL 550.1101 to

550.1704, the commissioner finds that a filing does not meet the

requirements of this chapter, the commissioner shall, after a

hearing held upon not less than 10 days' written notice, specifying

the matters to be considered at the hearing, to every insurer and

rating organization that made the filing, issue an order specifying

in what respects the commissioner finds that the filing fails to

meet the requirements of this chapter, and stating for a filing

that has gone into effect when, within a reasonable period

thereafter, that filing shall be considered no longer effective.

Copies A copy of the order shall be sent to every such insurer and

rating organization subject to the order. The order shall not

affect any contract or policy made or issued prior to the

expiration of the period set forth in the order before the date the

filing becomes ineffective as indicated in the commissioner's

order.

     Sec. 2618. If at any time subsequent to after the applicable

review period provided for in section 2616, the commissioner finds

that a filing does not meet the requirements of this chapter, he

the commissioner shall, after a hearing held upon not less than 10

days' written notice, specifying the matters to be considered at

such the hearing, to every insurer and rating organization which

that made such the filing, issue an order specifying in what

respects he the commissioner finds that such the filing fails to

meet the requirements of this chapter, and stating when, within a

reasonable period thereafter, such that filing shall be deemed

considered no longer effective. Copies A copy of said the order

shall be sent to every such insurer and rating organization subject

to the order. Said The order shall not effect affect any contract

or policy made or issued prior to the expiration of the period set

forth in said order before the date the filing becomes ineffective

as indicated in the commissioner's order.

     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

shall only be required to be in effect during the period the motor

vehicle is driven or moved upon 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 upon 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) "Highway" means that term as defined in section 20 of the

Michigan vehicle code, Act No. 300 of the Public Acts of 1949,

being section 257.20 of the Michigan Compiled Laws 1949 PA 300, MCL

257.20.

     (c) "Motorcycle" means a vehicle having a saddle or seat for

the use of the rider, designed to travel on not more than 3 wheels

in contact with the ground, which is equipped with a motor that

exceeds 50 cubic centimeters piston displacement. The wheels on any

attachment to the vehicle shall not be considered as wheels in

contact with the ground. Motorcycle does not include a moped, as

defined in section 32b of the Michigan vehicle code, Act No. 300 of

the Public Acts of 1949, being section 257.32b of the Michigan

Compiled Laws 1949 PA 300, MCL 257.32b. Motorcycle does not include

an ORV.

     (d) "Motorcycle accident" means a loss involving the

ownership, operation, maintenance, or use of a motorcycle as a

motorcycle, but not involving the ownership, operation,

maintenance, or use of a motor vehicle as a motor vehicle.

     (e) "Motor vehicle" means a vehicle, including a trailer,

operated or designed for operation upon a public highway by power

other than muscular power which has more than 2 wheels. Motor

vehicle does not include a motorcycle or a moped, as defined in

section 32b of Act No. 300 of the Public Acts of 1949, being

section 257.32b of the Michigan Compiled Laws the Michigan vehicle

code, 1949 PA 300, MCL 257.32b. Motor vehicle does not include a

farm tractor or other implement of husbandry which is not subject

to the registration requirements of the Michigan vehicle code

pursuant to section 216 of the Michigan vehicle code, Act No. 300

of the Public Acts of 1949, being section 257.216 of the Michigan

Compiled Laws 1949 PA 300, MCL 257.216. Motor vehicle does not

include an ORV.

     (f) "Motor vehicle accident" means a loss involving 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.

     (g) "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 a public highway and has the security

described in section 3101 or 3103 in effect.

(h) (g) "Owner" means any of the following:

     (i) A person renting a motor vehicle or having the use thereof,

under a lease or otherwise, for a period that is greater than 30

days.

     (ii) A person who holds the legal title to a vehicle, other

than a person engaged in the business of leasing motor vehicles who

is the lessor of a motor vehicle pursuant to a lease providing for

the use of the motor vehicle by the lessee for a period that is

greater than 30 days.

     (iii) A person who has the immediate right of possession of a

motor vehicle under an installment sale contract.

(i) (h) "Registrant" does not include a person engaged in the

House Bill No. 5559 as amended June 27, 2008

business of leasing motor vehicles who is the lessor of a motor

vehicle pursuant to a lease providing for the use of the motor

vehicle by the lessee for a period that is greater than 30 days.

     (3) Security may be provided under a policy issued by an

insurer duly authorized to transact business in this state which

affords insurance for the payment of benefits described in

subsection (1). A policy of insurance represented or sold as

providing security shall be deemed 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 upon 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 any person filing the security as provided in this

section.

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