HB-4783, As Passed Senate, October 19, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4783

 

 

June 20, 2017, Introduced by Reps. Kesto, Hughes, Marino, Lucido and Leutheuser and referred to the Committee on Tourism and Outdoor Recreation.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 3101 (MCL 500.3101), as amended by 2016 PA 346.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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 is

 

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

 

is driven or moved on 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 on

 

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) "Commercial quadricycle" means a vehicle to which all of

 

the following apply:

 

     (i) The vehicle has fully operative pedals for propulsion

 

entirely by human power.

 

     (ii) The vehicle has at least 4 wheels and is operated in a

 

manner similar to a bicycle.

 

     (iii) The vehicle has at least 6 seats for passengers.

 

     (iv) The vehicle is designed to be occupied by a driver and

 

powered either by passengers providing pedal power to the drive

 

train of the vehicle or by a motor capable of propelling the

 

vehicle in the absence of human power.

 

     (v) The vehicle is used for commercial purposes.

 

     (vi) The vehicle is operated by the owner of the vehicle or an

 

employee of the owner of the vehicle.

 

     (c) "Electric bicycle" means that term as defined in section

 

13e of the Michigan vehicle code, 1949 PA 300, MCL 257.13e.

 

     (d) (c) "Golf cart" means a vehicle designed for

 

transportation while playing the game of golf.

 

     (e) (d) "Highway" means highway or street as that term is

 

defined in section 20 of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.20.


     (f) (e) "Moped" means that term as defined in section 32b of

 

the Michigan vehicle code, 1949 PA 300, MCL 257.32b.

 

     (g) (f) "Motorcycle" means a vehicle that has a saddle or seat

 

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

 

wheels in contact with the ground, and is equipped with a motor

 

that exceeds 50 cubic centimeters piston displacement. For purposes

 

of this subdivision, the wheels on any attachment to the vehicle

 

are not considered as wheels in contact with the ground. Motorcycle

 

does not include a moped or an ORV.

 

     (h) (g) "Motorcycle accident" means a loss that involves the

 

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

 

motorcycle, but does not involve the ownership, operation,

 

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

 

     (i) (h) "Motor vehicle" means a vehicle, including a trailer,

 

that is operated or designed for operation on a public highway by

 

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

 

vehicle does not include any of the following:

 

     (i) A motorcycle.

 

     (ii) A moped.

 

     (iii) A farm tractor or other implement of husbandry that is

 

not subject to the registration requirements of the Michigan

 

vehicle code under section 216 of the Michigan vehicle code, 1949

 

PA 300, MCL 257.216.

 

     (iv) An ORV.

 

     (v) A golf cart.

 

     (vi) A power-driven mobility device.

 

     (vii) A commercial quadricycle.


     (viii) An electric bicycle.

 

     (j) (i) "Motor vehicle accident" means a loss that involves

 

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.

 

     (k) (j) "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 on a public highway and has

 

the security required under subsection (1) or section 3103 in

 

effect.

 

     (l) (k) "Owner" means any of the following:

 

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

 

motor vehicle, under a lease or otherwise, for a period that is

 

greater than 30 days.

 

     (ii) A person renting a motorcycle or having the use of a

 

motorcycle under a lease for a period that is greater than 30 days,

 

or otherwise for a period that is greater than 30 consecutive days.


A person who borrows a motorcycle for a period that is less than 30

 

consecutive days with the consent of the owner is not an owner

 

under this subparagraph.

 

     (iii) A person that holds the legal title to a motor vehicle

 

or motorcycle, other than a person engaged in the business of

 

leasing motor vehicles or motorcycles that is the lessor of a motor

 

vehicle or motorcycle under a lease that provides for the use of

 

the motor vehicle or motorcycle by the lessee for a period that is

 

greater than 30 days.

 

     (iv) A person that has the immediate right of possession of a

 

motor vehicle or motorcycle under an installment sale contract.

 

     (m) (l) "Power-driven mobility device" means a wheelchair or

 

other mobility device powered by a battery, fuel, or other engine

 

and designed to be used by an individual with a mobility disability

 

for the purpose of locomotion.

 

     (n) (m) "Registrant" does not include a person engaged in the

 

business of leasing motor vehicles or motorcycles that is the

 

lessor of a motor vehicle or motorcycle under a lease that provides

 

for the use of the motor vehicle or motorcycle by the lessee for a

 

period that is longer than 30 days.

 

     (3) Security required by subsection (1) may be provided under

 

a policy issued by an authorized insurer that affords insurance for

 

the payment of benefits described in subsection (1). A policy of

 

insurance represented or sold as providing security 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 on 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 a person that files the security as provided in this

 

section.

 

     (5) An insurer that issues a policy that provides the security

 

required under subsection (1) may exclude coverage under the policy

 

as provided in section 3017.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 4782 (request no.

 

03214'17) of the 99th Legislature is enacted into law.