PERSONAL INJURY PROTECTION; ELIGIBILITY                                                   S.B. 1140:

                                                                                  SUMMARY OF INTRODUCED BILL

                                                                                                         IN COMMITTEE

 

 

 

 

 

 

 

 

 

Senate Bill 1140 (as introduced 11-12-14)                                     (Senate-passed version)

Sponsor:  Senator Virgil Smith

Committee:  Insurance

 

Date Completed:  12-2-14

 

CONTENT

 

The bill would amend the Insurance Code to provide that a person using a motor vehicle or motorcycle taken unlawfully, or as to which he or she was named as an excluded driver, would not be entitled to personal protection insurance benefits for accidental bodily injury.

 

Under the Code, a person is not entitled to be paid personal protection insurance benefits for accidental bodily injury if, at the time of the accident, the person was using a motor vehicle or motorcycle that he or she had taken unlawfully, unless the person reasonably believed that he or she was entitled to use the motor vehicle or motorcycle. The bill instead provides that a person would not be entitled to insurance benefits if the person were using a motor vehicle or motorcycle that was taken unlawfully, unless the person believed that he or she or the driver was entitled to use it.

 

Also, under the bill, a person who was operating a motor vehicle or a motorcycle as to which he or she was named as an excluded operator as allowed under Section 3009(2) of the Code would not be entitled to personal protection insurance benefits for accidental bodily injury.

 

(Section 3009(2) allows an insured to exclude automobile liability or motor vehicle liability coverage when a vehicle is operated by a particular person.)

 

MCL 500.3113                                                                  Legislative Analyst:  Jeff Mann

 

FISCAL IMPACT

 

The bill would have no fiscal impact on local or State government.

 

                                                                                    Fiscal Analyst:  Glenn Steffens

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.