SB-1140, As Passed House, December 18, 2014

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1140

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending sections 3113 and 3114 (MCL 500.3113 and 500.3114),

section 3113 as amended by 1986 PA 93 and section 3114 as amended

by 2002 PA 38.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3113. A person is not entitled to be paid personal

protection insurance benefits for accidental bodily injury if at

the time of the accident any of the following circumstances

existed:

     (a) The person was willingly operating or willingly using a

motor vehicle or motorcycle which he or she had that was taken

unlawfully, unless and the person reasonably believed that he or

she was entitled to take and use the vehicle.knew or should have

known that the motor vehicle or motorcycle was taken unlawfully.

     (b) The person was the owner or registrant of a motor vehicle

or motorcycle involved in the accident with respect to which the

security required by section 3101 or 3103 was not in effect.

     (c) The person was not a resident of this state, was an

occupant of a motor vehicle or motorcycle not registered in this

state, and the motor vehicle or motorcycle was not insured by an

insurer which that has filed a certification in compliance with

section 3163.

     (d) The person was operating a motor vehicle or motorcycle as

to which he or she was named as an excluded operator as allowed

under section 3009(2).

     Sec. 3114. (1) Except as provided in subsections (2), (3), and

(5), a personal protection insurance policy described in section

3101(1) applies to accidental bodily injury to the person named in

the policy, the person's spouse, and a relative of either domiciled

in the same household, if the injury arises from a motor vehicle

accident. A personal injury insurance policy described in section

3103(2) applies to accidental bodily injury to the person named in

the policy, the person's spouse, and a relative of either domiciled

in the same household, if the injury arises from a motorcycle

accident. When If personal protection insurance benefits or

personal injury benefits described in section 3103(2) are payable

to or for the benefit of an injured person under his or her own

policy and would also be payable under the policy of his or her

spouse, relative, or relative's spouse, the injured person's

insurer shall pay all of the benefits and is not entitled to

recoupment from the other insurer.

     (2) A person suffering accidental bodily injury while an

operator or a passenger of a motor vehicle operated in the business

of transporting passengers shall receive the personal protection

insurance benefits to which the person is entitled from the insurer

of the motor vehicle. This subsection does not apply to a passenger

in any of the following, unless that the passenger is not entitled

to personal protection insurance benefits under any other policy:

     (a) A school bus, as defined by the department of education,

providing transportation not prohibited by law.

     (b) A bus operated by a common carrier of passengers certified

by the department of transportation.

     (c) A bus operating under a government sponsored

transportation program.

     (d) A bus operated by or providing service to a nonprofit

organization.

     (e) A taxicab insured as prescribed in section 3101 or 3102.

     (f) A bus operated by a canoe or other watercraft, bicycle, or

horse livery used only to transport passengers to or from a

destination point.

     (g) A motor vehicle insured under section 3101 or 3102 while

the vehicle is being operated by a transportation network company

driver in connection with a transportation network company's

digital network.

     (3) An employee, his or her spouse, or a relative of either

domiciled in the same household, who suffers accidental bodily

injury while an occupant of a motor vehicle owned or registered by

the employer, shall receive personal protection insurance benefits

to which the employee is entitled from the insurer of the furnished

vehicle.

     (4) Except as provided in subsections (1) to (3), a person

suffering accidental bodily injury arising from a motor vehicle

accident while an occupant of a motor vehicle shall claim personal

protection insurance benefits from insurers in the following order

of priority:

     (a) The insurer of the owner or registrant of the vehicle

occupied.

     (b) The insurer of the operator of the vehicle occupied.

     (5) A person suffering accidental bodily injury arising from a

motor vehicle accident which that shows evidence of the involvement

of a motor vehicle while an operator or passenger of a motorcycle

shall claim personal protection insurance benefits from insurers in

the following order of priority:

     (a) The insurer of the owner or registrant of the motor

vehicle involved in the accident.

     (b) The insurer of the operator of the motor vehicle involved

in the accident.

     (c) The motor vehicle insurer of the operator of the

motorcycle involved in the accident.

     (d) The motor vehicle insurer of the owner or registrant of

the motorcycle involved in the accident.

     (6) If 2 or more insurers are in the same order of priority to

provide personal protection insurance benefits under subsection

(5), an insurer paying benefits due is entitled to partial

recoupment from the other insurers in the same order of priority,

together with and a reasonable amount of partial recoupment of the

expense of processing the claim, in order to accomplish equitable

distribution of the loss among all of the insurers.

     (7) As used in this section:

(a) "Transportation network company" means a person operating

in this state that uses a digital network to connect riders to

transportation network company drivers for the purpose of providing

transportation. Transportation network company does not include

taxi service, transportation service arranged through a

transportation broker, a ridesharing arrangement, or a

transportation service using fixed routes at regular intervals.

     (b) "Transportation network company driver" means an

individual who uses his or her personal vehicle to provide

transportation services for riders that are matched to the

individual through a transportation network company's digital

network, regardless of whether the individual is employed by a

transportation network company.