June 28, 2007, Introduced by Rep. Virgil Smith and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 3009 (MCL 500.3009), as amended by 1988 PA 43.
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, operation,
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 limit, exclusive of interest and
costs,
of not less than $20,000.00 $100,000.00 because of bodily
injury to or death of 1 person in any 1 accident, and subject to
that
limit for 1 person, to a limit of not less than $40,000.00
$200,000.00 because of bodily injury to or death of 2 or more
persons in any 1 accident, and to a limit of not less than
$10,000.00 because of injury to or destruction of property of
others in any accident. Beginning October 1, 2010, the $100,000.00
and $200,000.00 minimum amounts shall be adjusted every 5 years to
reflect changes in the cost of living under the same rules
prescribed by the commissioner with regard to work loss benefits
under section 3107(1)(b). Any change in the minimum amounts shall
apply only to bodily injury accidents occurring after the date of
the change in the minimum amounts.
(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 This exclusion shall 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) 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.
Enacting section 1. This amendatory act takes effect January
1, 2008 and applies to policies issued or renewed on or after
January 1, 2008.