HOUSE BILL No. 5627

 

 

February 22, 2018, Introduced by Reps. Lucido, Chirkun, Dianda, Marino, Green and LaFave and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 1833, 1910, 2102, 2103, 2118, 2120, 3009,

 

3017, 3020, 3037, 3101, 3103, 3104, 3107, 3109a, 3111, 3113, 3114,

 

3115, 3116, 3121, 3125, 3131, 3135, 3141, 3171, 3172, 3175, 3176,

 

3178, 3303, 3320, 3321, 3350, and 6107 (MCL 500.1833, 500.1910,

 

500.2102, 500.2103, 500.2118, 500.2120, 500.3009, 500.3017,

 

500.3020, 500.3037, 500.3101, 500.3103, 500.3104, 500.3107,

 

500.3109a, 500.3111, 500.3113, 500.3114, 500.3115, 500.3116,

 

500.3121, 500.3125, 500.3131, 500.3135, 500.3141, 500.3171,

 

500.3172, 500.3175, 500.3176, 500.3178, 500.3303, 500.3320,

 

500.3321, 500.3350, and 500.6107), section 1833 as added by 1989 PA

 

214, sections 1910, 3171, 3172, 3175, and 3320 as amended and

 

section 3178 as added by 2012 PA 204, section 2103 as amended by

 

2016 PA 449, sections 2118 and 2120 as amended by 2007 PA 35,

sections 3009, 3037, and 3113 as amended and section 3017 as added

 

by 2016 PA 346, section 3020 as amended by 2006 PA 106, section

 

3101 as amended by 2017 PA 140, section 3103 as amended by 1986 PA

 

173, section 3104 as amended by 2002 PA 662, section 3107 as

 

amended by 2012 PA 542, section 3109a as amended by 2012 PA 454,

 

section 3114 as amended by 2016 PA 347, section 3121 as amended by

 

1993 PA 290, section 3135 as amended by 2012 PA 158, section 3303

 

as amended by 1980 PA 461, section 3350 as amended by 1982 PA 502,

 

and section 6107 as amended by 2017 PA 58; and to repeal acts and

 

parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1833. (1) A risk retention group chartered or doing

 

business in this state shall not join or contribute financially to

 

the property and casualty guaranty association created under

 

chapter 79 or other similar association or mechanism in this state.

 

A risk retention group, its insureds, or claimants against its

 

insureds, shall not receive any benefit from the property and

 

casualty guaranty association or other similar association or

 

mechanism for claims arising under the insurance policies issued by

 

the risk retention group.

 

     (2) A purchasing group obtaining insurance covering its

 

members' risks from an unauthorized insurer not authorized in this

 

state or a risk retention group shall not be covered by the

 

property and casualty guaranty association or similar association

 

or mechanism in this state.

 

     (3) If a purchasing group obtains insurance covering its

 

members' risks from an authorized insurer, authorized in this

 

state, only risks resident or located in this state shall be

 

covered by the property and casualty guaranty association under

 

chapter 79.

 

     (4) A risk retention group chartered or doing business in this

 

state which that offers coverage for the security required under

 

chapter 31 shall be is a participating member in the Michigan

 

automobile insurance placement facility established under chapter

 

33 for the purpose of sharing in the equitable apportionment among

 

insurers of liability insurance losses and expenses incurred on

 

policies written through that facility. The risk retention group

 

shall submit sufficient information to the commissioner, director,

 

or to whomever the commissioner director may designate, to enable

 

the apportionment on a nondiscriminatory basis of the risk

 

retention group's proportionate share of the losses and expenses.

 

     Sec. 1910. (1) Insurance A licensee shall not be placed by a

 

licensee place insurance with an unauthorized insurer if coverage

 

is available from an authorized insurer.

 

     (2) There is a rebuttable presumption that the following

 

coverages are available from an authorized insurer:

 

     (a) No-fault automobile insurance , as required by under

 

section 3101, which that is not written for a person who is self-

 

insuring motor vehicles under section 3101d.

 

     (b) Automobile liability or motor vehicle liability insurance

 

described in section 3009.

 

     (c) (b) Private passenger automobile physical damage coverage.

 

     (d) (c) Homeowners and property insurance on owner-occupied

 

dwellings, the value of which is less than the maximum limits of

coverage that are available for the property under the general

 

rules of the Michigan basic property insurance association.Basic

 

Property Insurance Association.

 

     (e) (d) Any coverage readily available from 3 or more

 

authorized insurers, unless the authorized insurers quote a premium

 

and terms not competitive with the premium and terms quoted by an

 

unauthorized insurer.

 

     (f) (e) Worker's compensation insurance that is not written

 

for an employer that is partially self-insured under section 611 of

 

the worker's disability compensation act of 1969, 1969 PA 317, MCL

 

418.611.

 

     (3) There is a rebuttable presumption that the following

 

coverages are unavailable from an authorized insurer:

 

     (a) Coverages with respect to which 1 portion of the risk is

 

acceptable to authorized insurers, but another portion of the same

 

risk is not acceptable. The entire coverage may be placed with

 

eligible unauthorized insurers if it can be shown that eligible

 

unauthorized insurers will accept the entire coverage but not the

 

rejected portion alone.

 

     (b) Any coverage that the licensee is unable to procure after

 

diligent search among authorized insurers.

 

     (4) The commissioner director shall maintain, on a current

 

basis, a list of those lines of insurance for which coverages are

 

determined by the commissioner director to be generally unavailable

 

in the authorized insurance market. Any person may request in

 

writing that the commissioner director add or remove a coverage

 

from the current list. The commissioner director shall grant or

deny a request within 30 days after receiving the written request.

 

The commissioner director shall encourage dissemination of

 

information regarding the availability of coverages for which the

 

public interest necessitates additions to or deletions from the

 

list. The list shall must be published at least quarterly and shall

 

be revised as required. The commissioner director shall make the

 

list available to all licensees and other members of the public,

 

upon on request.

 

     Sec. 2102. (1) "Affiliate of", or an insurer "affiliated with"

 

an insurer, means an insurer that directly, or indirectly through 1

 

or more intermediaries, controls, or is controlled by, or is under

 

common control with the insurer specified.

 

     (2) "Automobile insurance" means insurance for private

 

passenger nonfleet automobiles which provides any of the following:

 

     (a) Automobile liability or motor vehicle liability insurance

 

described in section 3009.

 

     (b) (a) Security required pursuant to under section 3101.

 

     (c) (b) Personal protection, property protection, and residual

 

liability insurance for amounts in excess of the amounts required

 

provided under chapter 31.

 

     (d) (c) Insurance coverages customarily known as comprehensive

 

and collision.

 

     (e) (d) Other insurance coverages for a private passenger

 

nonfleet automobile as prescribed by rule promulgated by the

 

commissioner pursuant to Act No. 306 of the Public Acts of 1969, as

 

amended, being sections director under the administrative

 

procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.315 of the

Michigan Compiled Laws. A 24.328. The director shall transmit in

 

advance a rule proposed for promulgation by the commissioner

 

pursuant to under this section shall be transmitted in advance to

 

each member of the standing committee committees in the house and

 

in the senate which has with jurisdiction over insurance.

 

     (3) "Automobile insurance package policy" means a policy which

 

that includes more than 1 of the automobile insurance coverages

 

described in section 2102(2)(a), (b), (c), or (d), subsection (2)

 

in any combination.

 

     (4) "Declination" means any of the following:

 

     (a) Refusal by an agent to submit an application on behalf of

 

an applicant to any of the insurers represented by the agent.

 

     (b) Refusal by an insurer to issue insurance to a person upon

 

on receipt of an application for insurance.

 

     (c) Offering insurance at higher rates with a different

 

insurer than that requested by a person.

 

     (d) Offering coverage with less favorable terms or conditions

 

than those requested by a person.

 

     Sec. 2103. (1) "Eligible person", for automobile insurance,

 

means a person who is an owner or registrant of an automobile

 

registered or to be registered in this state or who holds a valid

 

license to operate a motor vehicle issued by this state, but does

 

not include any of the following:

 

     (a) A person who is not required to maintain security under

 

section 3101, unless the person intends to reside in this state for

 

30 days or more and makes a written statement of that intention on

 

a form approved by the director.

     (a) (b) A person whose license to operate a vehicle is under

 

suspension or revocation.

 

     (b) (c) A person who has been convicted within the immediately

 

preceding 5-year period of fraud or intent to defraud involving an

 

insurance claim or an application for insurance; or an individual

 

who has been successfully denied, within the immediately preceding

 

5-year period, payment by an insurer of a claim in excess of

 

$1,000.00 under an automobile insurance policy, if there is

 

evidence of fraud or intent to defraud involving an insurance claim

 

or application.

 

     (c) (d) A person who, during the immediately preceding 3-year

 

period, has been convicted under, or who has been subject to an

 

order of disposition of the family division of circuit court for a

 

violation of, any of the following:

 

     (i) Section 601d of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.601d, or any other law of this state the violation of which

 

constitutes a felony resulting from the operation of a motor

 

vehicle.

 

     (ii) Section 625 of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.625.

 

     (iii) Section 617, 617a, 618, or 619 of the Michigan vehicle

 

code, 1949 PA 300, MCL 257.617, 257.617a, 257.618, and 257.619.

 

     (iv) Section 626 of the Michigan vehicle code, 1949 PA 300,

 

MCL 257.626; or a similar violation under the laws of any other

 

state or a municipality in or outside of this state.

 

     (d) (e) A person whose vehicle insured or to be insured under

 

the policy fails to meet the motor vehicle safety requirements of

sections 683 to 711 of the Michigan vehicle code, 1949 PA 300, MCL

 

257.683 to 257.711.

 

     (e) (f) A person whose policy of automobile insurance has been

 

canceled because of nonpayment of premium or financed premium

 

within the immediately preceding 2-year period, unless the premium

 

due on a policy for which application has been made is paid in full

 

before issuance or renewal of the policy.

 

     (f) (g) A person who fails to obtain or maintain membership in

 

a club, group, or organization, if membership is a uniform

 

requirement of the insurer as a condition of providing insurance,

 

and if the dues, charges, or other conditions for membership are

 

applied uniformly throughout this state, are not expressed as a

 

percentage of premium, and do not vary with respect to the rating

 

classification of the member except for the purpose of offering a

 

membership fee to family units. Membership fees may vary in

 

accordance with the amount or type of coverage if the purchase of

 

additional coverage, either as to type or amount, is not a

 

condition for reduction of dues or fees.

 

     (g) (h) A person whose driving record for the 3-year period

 

immediately preceding application for or renewal of a policy, has,

 

under section 2119a, an accumulation of more than 6 insurance

 

eligibility points.

 

     (2) "Eligible person", for home insurance, means a person who

 

is the owner-occupant or tenant of a dwelling of any of the

 

following types: a house, a condominium unit, a cooperative unit, a

 

room, or an apartment; or a person who is the owner-occupant of a

 

multiple unit dwelling of not more than 4 residential units.

Eligible person does not include any of the following:

 

     (a) A person who has been convicted, in the immediately

 

preceding 5-year period, of 1 or more of the following:

 

     (i) Arson, or conspiracy to commit arson.

 

     (ii) A crime under sections 72 to 77, 112, 211a, 377a, 377b,

 

or 380 of the Michigan penal code, 1931 PA 328, MCL 750.72 to

 

750.77, 750.112, 750.211a, 750.377a, 750.377b, and 750.380.

 

     (iii) A crime under section 92, 151, 157b, or 218 of the

 

Michigan penal code, 1931 PA 328, MCL 750.92, 750.151, 750.157b,

 

and 750.218, based on a crime described in subparagraph (ii)

 

committed by or on behalf of the person.

 

     (b) A person who has been successfully denied, within the

 

immediately preceding 5-year period, payment by an insurer of a

 

claim under a home insurance policy based on evidence of arson,

 

conspiracy to commit arson, fraud, or conspiracy to commit fraud,

 

committed by or on behalf of the person.

 

     (c) A person who insures or seeks to insure a dwelling that is

 

being used for an illegal or demonstrably hazardous purpose.

 

     (d) A person who refuses to purchase an amount of insurance

 

equal to at least 80% of the replacement cost of the property

 

insured or to be insured under a replacement cost policy.

 

     (e) A person who refuses to purchase an amount of insurance

 

equal to at least 100% of the market value of the property insured

 

or to be insured under a repair cost policy.

 

     (f) A person who refuses to purchase an amount of insurance

 

equal to at least 100% of the actual cash value of the property

 

insured or to be insured under a tenant or renter's home insurance

policy.

 

     (g) A person whose policy of home insurance has been canceled

 

because of nonpayment of premium within the immediately preceding

 

2-year period, unless the premium due on the policy is paid in full

 

before issuance or renewal of the policy.

 

     (h) A person who insures or seeks to insure a dwelling, if the

 

insured value is not any of the following:

 

     (i) For a repair cost policy, at least $15,000.00.

 

     (ii) For a replacement policy, at least $35,000.00 or another

 

amount established by the director. The director may establish an

 

amount under this subparagraph biennially by a rule promulgated

 

under the administrative procedures act of 1969, 1969 PA 306, MCL

 

24.201 to 24.328, and based on changes in applicable construction

 

cost indices.

 

     (i) A person who insures or seeks to insure a dwelling that

 

has physical conditions that clearly present an extreme likelihood

 

of a significant loss under a home insurance policy.

 

     (j) A person whose real property taxes with respect to the

 

dwelling insured or to be insured have been and are delinquent for

 

2 or more years at the time of renewal of, or application for, home

 

insurance.

 

     (k) A person who has failed to procure or maintain membership

 

in a club, group, or organization, if membership is a uniform

 

requirement of the insurer, and if the dues, charges, or other

 

conditions for membership are applied uniformly throughout this

 

state, are not expressed as a percentage of premium, and do not

 

vary with respect to the rating classification of the member except

for the purpose of offering a membership fee to family units.

 

Membership fees may vary in accordance with the amount or type of

 

coverage if the purchase of additional coverage, either as to type

 

or amount, is not a condition for reduction of dues or fees.

 

     (3) "Home insurance" means any of the following, but does not

 

include insurance intended to insure commercial, industrial,

 

professional, or business property, obligations, or liabilities:

 

     (a) Fire insurance for an insured's dwelling of a type

 

described in subsection (2).

 

     (b) If contained in or indorsed to a fire insurance policy

 

providing insurance for the insured's residence, other insurance

 

intended primarily to insure nonbusiness property, obligations, and

 

liabilities.

 

     (c) Other insurance coverages for an insured's residence as

 

prescribed by rule promulgated by the director under the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328. The director shall transmit a rule proposed for

 

promulgation under this section in advance to each member of the

 

standing committees in the house of representatives and the senate

 

that have jurisdiction over insurance.

 

     (4) "Insurance eligibility points" means all of the following:

 

     (a) Points calculated, according to the following schedule,

 

for convictions, determinations of responsibility for civil

 

infractions, or findings of responsibility in probate court:

 

     (i) For a violation of any lawful speed limit by more than 15

 

miles per hour, or careless driving, 4 points.

 

     (ii) For a violation of any lawful speed limit by more than 10

miles per hour but less than 16 miles per hour, 3 points.

 

     (iii) For a violation of any lawful speed limit by more than 5

 

miles per hour but less than 11 miles per hour, 2 points.

 

     (iv) For a violation of any speed limit by more than 5 miles

 

per hour but less than 16 miles per hour on a roadway that had a

 

lawfully posted maximum speed of 70 miles per hour or greater as of

 

January 1, 1974, 2 points.

 

     (v) For a violation of a speed limit by less than 6 miles per

 

hour, 1 point.

 

     (vi) For all other moving violations pertaining to the

 

operation of motor vehicles, 2 points.

 

     (b) Points calculated, according to the following schedule,

 

for determinations that the person was substantially at-fault:

 

     (i) For the first substantially at-fault accident, 3 points.

 

     (ii) For the second and each subsequent substantially at-fault

 

accident, 4 points.

 

     (5) "Insurer" means an insurer authorized to transact in this

 

state the kind or combination of kinds of insurance constituting

 

automobile insurance or home insurance.

 

     Sec. 2118. (1) As a condition of maintaining its certificate

 

of authority, an insurer shall not refuse to insure, refuse to

 

continue to insure, or limit coverage available to an eligible

 

person for automobile insurance, except in accordance with

 

underwriting rules established pursuant to as provided in this

 

section and sections 2119 and 2120.

 

     (2) The underwriting rules that an insurer may establish for

 

automobile insurance shall must be based only on the following:

     (a) Criteria identical to the standards set forth in section

 

2103(1).

 

     (b) The insurance eligibility point accumulation in excess of

 

the amounts established by section 2103(1) of a member of the

 

household of the eligible person insured or to be insured, if the

 

member of the household usually accounts for 10% or more of the use

 

of a vehicle insured or to be insured. For purposes of this

 

subdivision, there is a rebuttable presumption that a person who is

 

the principal driver for 1 automobile insurance policy shall be

 

rebuttably presumed does not to usually account for more than 10%

 

of the use of other vehicles another vehicle of the household that

 

is not insured under the policy of that the person.

 

     (c) With respect to a vehicle insured or to be insured,

 

substantial modifications from the vehicle's original manufactured

 

state for purposes of increasing the speed or acceleration

 

capabilities of the vehicle.

 

     (d) Except as otherwise provided in section 2116a, failure by

 

the person to provide proof that insurance required by section 3101

 

was maintained in force with respect to any vehicle that was both

 

owned by the person and driven or moved by the person or by a

 

member of the household of the person during the 6-month period

 

immediately preceding application. Such proof shall take the form

 

of a certification by the person on a form provided by the insurer

 

that the vehicle was not driven or moved without maintaining the

 

insurance required by section 3101 during the 6-month period

 

immediately preceding application.

 

     (d) (e) Type of vehicle insured or to be insured, based on 1

of the following, without regard to the age of the vehicle:

 

     (i) The vehicle is being of limited production or of custom

 

manufacture.

 

     (ii) The insurer does not have having a rate lawfully in

 

effect for the type of vehicle.

 

     (iii) The vehicle represents representing exposure to

 

extraordinary expense for repair or replacement under comprehensive

 

or collision coverage.

 

     (e) (f) Use of a vehicle insured or to be insured for

 

transportation of passengers for hire, for rental purposes, or for

 

commercial purposes. Rules under this subdivision shall must not be

 

based on the use of a vehicle for volunteer or charitable purposes

 

or for which reimbursement for normal operating expenses is

 

received.

 

     (f) (g) Payment of a minimum deposit at the time of

 

application or renewal, not to exceed the smallest deposit required

 

under an extended payment or premium finance plan customarily used

 

by the insurer.

 

     (g) (h) For purposes of requiring comprehensive deductibles of

 

not more than $150.00, or of refusing to insure if the person

 

refuses to accept a required deductible, the claim experience of

 

the person with respect to comprehensive coverage.

 

     (h) (i) Total abstinence from the consumption of alcoholic

 

beverages except if such the beverages are consumed as part of a

 

religious ceremony. However, an insurer shall not utilize an

 

underwriting rule based on this subdivision unless the insurer has

 

been was authorized to transact automobile insurance in this state

prior to before January 1, 1981, and has consistently utilized such

 

an underwriting rule as part of the insurer's automobile insurance

 

underwriting since being authorized to transact automobile

 

insurance in this state.

 

     (i) (j) One or more incidents involving a threat, harassment,

 

or physical assault by the insured or applicant for insurance on an

 

insurer employee, agent, or agent employee while acting within the

 

scope of his or her employment so long as if a report of the

 

incident was filed with an appropriate law enforcement agency.

 

     Sec. 2120. (1) Affiliated insurers may establish underwriting

 

rules so that each affiliate will provide automobile insurance only

 

to certain eligible persons. This subsection shall apply applies

 

only if an eligible person can obtain automobile insurance from 1

 

of the affiliates. The underwriting rules shall be in compliance

 

must comply with this section and sections 2118 and 2119.

 

     (2) An insurer may establish separate rating plans so that

 

certain eligible persons are provided automobile insurance under 1

 

rating plan and other eligible persons are provided automobile

 

insurance under another rating plan. This subsection shall apply

 

applies only if all eligible persons can obtain automobile

 

insurance under a rating plan of the insurer. Underwriting The

 

insurer shall establish underwriting rules consistent with this

 

section and sections 2118 and 2119 shall be established to define

 

the rating plan applicable to each eligible person.

 

     (3) Underwriting rules under this section shall must be based

 

only on the following:

 

     (a) With respect to a vehicle insured or to be insured,

substantial modifications from the vehicle's original manufactured

 

state for purposes of increasing the speed or acceleration

 

capabilities of the vehicle.

 

     (b) Except as otherwise provided in section 2116a, failure of

 

the person to provide proof that insurance required by section 3101

 

was maintained in force with respect to any vehicle owned and

 

operated by the person or by a member of the household of the

 

person during the 6-month period immediately preceding application

 

or renewal of the policy. Such proof shall take the form of a

 

certification by the person that the required insurance was

 

maintained in force for the 6-month period with respect to such

 

vehicle.

 

     (b) (c) For purposes of insuring persons who have refused a

 

deductible lawfully required under section 2118(2)(h), 2118(2)(g),

 

the claim experience of the person with respect to comprehensive

 

coverage.

 

     (c) (d) Refusal of the person to pay a minimum deposit

 

required under section 2118(2)(g).2118(2)(f).

 

     (d) (e) A person's insurance eligibility point accumulation

 

under section 2103(1)(h), 2103(1)(g), or the total insurance

 

eligibility point accumulation of all persons who account for 10%

 

or more of the use of 1 or more vehicles insured or to be insured

 

under the policy.

 

     (e) (f) The type of vehicle insured or to be insured as

 

provided in section 2118(2)(e).2118(2)(d).

 

     Sec. 3009. (1) An insurer that delivers or issues for delivery

 

in this state with respect to a motor vehicle registered or

principally garaged in this state 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 individual arising out of the

 

ownership, maintenance, or use of a the 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 all of the following

 

limits:

 

     (a) A limit, exclusive of interest and costs, of not less than

 

$20,000.00 because of bodily injury to or death of 1 person in any

 

1 accident.

 

     (b) Subject to the limit for 1 person in subdivision (a), a

 

limit of not less than $40,000.00 because of bodily injury to or

 

death of 2 or more persons in any 1 accident.

 

     (c) A limit of not less than $10,000.00 because of injury to

 

or destruction of property of others in any accident.may deliver or

 

issue the policy with any limit or combination of limits for bodily

 

injury or death of 1 or more individuals or destruction of property

 

to which the insurer and the person insured agree.

 

     (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. An exclusion under this subsection is

 

not 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) A liability policy described in subsection (1) may exclude

 

coverage for liability as provided in section 3017.

 

     (4) 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.

 

     Sec. 3017. (1) An authorized insurer that issues an insurance

 

policy insuring a personal vehicle may exclude all coverage

 

afforded under the policy for any loss or injury that occurs while

 

a transportation network company driver is logged on to a

 

transportation network company digital network or while a

 

transportation network company driver is providing a transportation

 

network company prearranged ride. By way of example and not as

 

limitation, all of the following coverages may be excluded under

 

this section:

 

     (a) Residual liability insurance required under sections 3009

 

and 3101.

 

     (b) Personal protection and property protection insurance

 

required under section 3101.

 

     (c) Uninsured and underinsured motorist coverage.

 

     (d) Comprehensive coverage.

 

     (e) Collision coverage, including coverage required to be

 

offered under section 3037.

 

     (2) This section does not require an automobile insurance

 

policy to provide coverage under any of the following

circumstances:

 

     (a) While a transportation network company driver is logged on

 

to a transportation network company digital network.

 

     (b) While a transportation network company driver is engaged

 

in providing a transportation network company prearranged ride.

 

     (c) While a transportation network company driver otherwise

 

uses a vehicle to transport passengers for compensation.

 

     (3) This section does not preclude an insurer from providing

 

coverage for a transportation network company driver's personal

 

vehicle by contract or endorsement.

 

     (4) An insurer that excludes the coverage described in

 

subsection (1) does not have a duty to defend or indemnify for any

 

claim that is expressly excluded. This section does not invalidate

 

or limit an exclusion contained in a policy, including a policy in

 

use or approved for use in this state before the effective date of

 

this section, March 21, 2017, that excludes coverage for vehicles

 

that are used to carry individuals or property for a charge or that

 

are available for hire by the public. An insurer that defends or

 

indemnifies for a claim against a transportation network company

 

driver who is excluded under the terms of the policy has a right of

 

contribution against other insurers that provided automobile

 

insurance to the transportation network company driver in

 

satisfaction of the coverage requirements of section 23 of the

 

limousine, taxicab, and transportation network company act, 2016 PA

 

345, MCL 257.2123, at the time of the loss.

 

     (5) An insurer that provides automobile insurance to a

 

transportation network company shall comply with section 23(5),

(6), and (9) of the limousine, taxicab, and transportation network

 

company act, 2016 PA 345, MCL 257.2123.

 

     (6) During an investigation of whether a claim is covered

 

under an insurance policy, a transportation network company and any

 

insurer that provides coverage under section 23 of the limousine,

 

taxicab, and transportation network company act, 2016 PA 345, MCL

 

257.2123, shall cooperate to facilitate the exchange of relevant

 

information with persons who are directly involved and any insurer

 

of the transportation network company driver. Relevant information

 

required to be exchanged under this subsection includes, but is not

 

limited to, all of the following:

 

     (a) The times that the transportation network company driver

 

logged on to and logged off of the transportation network company

 

digital network during the 12 hours preceding the accident and the

 

12 hours following the accident.

 

     (b) A clear description of the coverage, exclusions, and

 

limits under any insurance policy maintained as required by section

 

23 of the limousine, taxicab, and transportation network company

 

act, 2016 PA 345, MCL 257.2123,.

 

     (7) As used in this section, all of the following terms mean

 

those terms as defined in section 2 of the limousine, taxicab, and

 

transportation network company act, 2016 PA 345, MCL 257.2102:

 

     (a) "Personal vehicle".

 

     (b) "Prearranged ride".

 

     (b) (c) "Transportation network company".

 

     (c) (d) "Transportation network company digital network".

 

     (d) (e) "Transportation network company driver".

     (e) "Transportation network company prearranged ride".

 

     Sec. 3020. (1) A An authorized insurer shall not issue or

 

deliver in this state a policy of casualty insurance, except not

 

including worker's compensation and mortgage guaranty insurance,

 

but including all classes of motor vehicle coverage, shall not be

 

issued or delivered in this state by an insurer authorized to do

 

business in this state for which a premium or advance assessment is

 

charged, unless the policy contains the following provisions:

 

     (a) That Except as otherwise provided in subsections (2) and

 

(3), that the policy may be canceled at any time at the request of

 

the insured, in which case the insurer shall will refund the excess

 

of paid premium or assessment above the pro rata rates for the

 

expired time. , except as otherwise provided in subsections (2),

 

(3), and (4).

 

     (b) Except as otherwise provided in subdivision (d), that the

 

policy may be canceled at any time by the insurer by mailing to the

 

insured at the insured's address last known to the insurer or an

 

authorized agent of the insurer, with postage fully prepaid, a not

 

less than 10 days' written notice of cancellation with or without

 

tender of the excess of paid premium or assessment above the pro

 

rata premium for the expired time.

 

     (c) That the minimum earned premium on any policy canceled

 

pursuant to under this subsection, other than automobile insurance

 

as defined in section 2102(2)(a), and (b), shall and (c), will not

 

be less than the pro rata premium for the expired time or $25.00,

 

whichever is greater.

 

     (d) That an insurer may refuse to renew a malpractice

insurance policy only by mailing to the insured at the insured's

 

address last known to the insurer or an authorized agent of the

 

insurer, with postage fully prepaid, a not less than 60 days'

 

written notice of refusal to renew. As used in this subdivision,

 

"malpractice insurance" means malpractice insurance as described in

 

section 624(1)(h).

 

     (2) An insurer may file a rule with the commissioner director

 

providing for a minimum retention of premium for automobile

 

insurance as defined in section 2102(2)(a), and (b), and (c). The

 

rule shall must describe the circumstances under which the

 

retention is applied and shall set forth the amount to be retained,

 

which is subject to the approval of the commissioner. director. The

 

rule shall must include, but need not be limited to, the following

 

provisions:

 

     (a) That a minimum retention shall will be applied only when

 

the amount exceeds the amount that would have been retained had the

 

policy been canceled on a pro rata basis.

 

     (b) That a minimum retention does not apply to renewal

 

policies.

 

     (c) That a minimum retention does not apply when a policy is

 

canceled for the following reasons:

 

     (i) The insured is no longer required to maintain security

 

pursuant to section 3101(1).

 

     (ii) The because the insured has replaced the automobile

 

insurance policy being canceled with an automobile insurance policy

 

from another insurer and provides proof of the replacement coverage

 

to the canceling insurer.

     (3) Notwithstanding subsection (1), an insurer may issue a

 

noncancelable, nonrefundable, 6-month prepaid automobile insurance

 

policy in order for an insured to meet the registration

 

requirements of section 227a of the Michigan vehicle code, 1949 PA

 

300, MCL 257.227a.

 

     (3) (4) An insurer may provide for a short rate premium for

 

insurance on a motorcycle, watercraft, off-road vehicle, or

 

snowmobile. As used in this subsection:

 

     (a) "Motorcycle" means that term as defined in section 3101.

 

     (b) "Off-road vehicle" means an ORV as defined in section

 

81101 of the natural resources and environmental protection act,

 

1994 PA 451, MCL 324.81101.

 

     (c) "Snowmobile" means that term as defined in section 82101

 

of the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.82101.

 

     (d) "Watercraft" means that term as defined in section 80301

 

of the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.80301.

 

     (4) (5) Cancellation as prescribed in this section is without

 

prejudice to any claim originating before the cancellation. The

 

mailing of notice is prima facie proof of notice. Delivery of

 

written notice is equivalent to mailing.

 

     (6) A notice of cancellation, including a cancellation notice

 

under section 3224, shall be accompanied by a statement that the

 

insured shall not operate or permit the operation of the vehicle to

 

which notice of cancellation is applicable, or operate any other

 

vehicle, unless the vehicle is insured as required by law.

     (5) (7) An insurer who wishes to provide for a short rate

 

premium under subsection (4) (3) shall file with the commissioner

 

pursuant to director as provided in chapter 24 or 26 a rule

 

establishing a short rate premium. The rule shall must describe the

 

circumstances under which the short rate is applied and shall set

 

forth the amount or percentage to be retained.

 

     Sec. 3037. (1) At the time a new applicant for the insurance

 

required by described in section 3009 or insurance under section

 

3101 for a private passenger nonfleet automobile makes an initial

 

written application to the an insurer, an the insurer shall offer

 

both of the following collision coverages to the applicant:

 

     (a) Limited collision coverage, which must pay for collision

 

damage to the insured vehicle without a deductible amount if the

 

operator of the vehicle is not substantially at fault in the

 

accident from which the damage arose.

 

     (b) Broad form collision coverage, which must pay for

 

collision damage to the insured vehicle regardless of fault, with

 

deductibles in the amounts as approved by the director, which

 

deductibles must be waived if the operator of the vehicle is not

 

substantially at fault in the accident from which the damage arose.

 

     (2) In addition to the coverages offered under subsection (1),

 

an insurer may offer standard and limited collision coverage may be

 

offered with deductibles as approved by the director.

 

     (3) An insurer may limit collision coverage offered under this

 

section as provided in section 3017.

 

     (4) If the an applicant is required by the an insurer to sign

 

the a written application form described in subsection (1), and if

the applicant chooses to reject both of the collision coverages, or

 

limited collision without a deductible, offered under subsection

 

(1), the rejection must be made in writing, either on a separate

 

form, as part of the application, or in some combination of these,

 

as approved by the director. The rejection statement must inform

 

the applicant of his or her rights if there is damage to the

 

insured vehicle under the alternative coverage option selected.

 

     (5) If a written application is made by mail, and if the

 

applicant fails to sign or return a written rejection statement as

 

required by subsection (4), the requirements of subsection (4) are

 

considered to be satisfied with respect to the insurer if all of

 

the following occur:

 

     (a) The application provides the applicant with an opportunity

 

to select the coverages required to be offered under subsection

 

(1).

 

     (b) The applicant is requested to sign the rejection

 

statement, either as part of the application or as a separate form

 

issued with the application, if the applicant fails to select

 

either of the coverages specified in subsection (1).

 

     (c) The applicant signed the application as otherwise required

 

by the insurer.

 

     (6) At the time of the an initial written application

 

described in subsection (1), an agent or insurer shall provide the

 

applicant with a written explanation of collision coverage options

 

in easily understandable language, if that the information is not

 

contained in the application form.

 

     (7) At least annually in conjunction with the renewal of a

private passenger nonfleet automobile insurance policy, or at the

 

time of an addition, deletion, or substitution of a vehicle under

 

an existing policy, other than a group policy, an insurer shall

 

inform the policyholder, on a form approved by the director, of all

 

of the following:

 

     (a) The current status of collision coverage, if any, for the

 

vehicle or vehicles affected by the renewal or change and the

 

rights of the insured under the current coverage if the vehicle is

 

damaged.

 

     (b) The collision coverages available under the policy and the

 

rights of the insured under each collision option if the vehicle is

 

damaged.

 

     (c) Procedures for the policyholder to follow if he or she

 

wishes to change the current collision coverage.

 

     (8) As used in this section:

 

     (a) "Collision damage" does not include losses customarily

 

insured under comprehensive coverages.

 

     (b) "Substantially at fault" means a person's action or

 

inaction was more than 50% of the cause of the accident.

 

     Sec. 3101. (1) The owner or registrant of a motor vehicle

 

required to be registered in this state shall may maintain security

 

for payment of benefits under personal protection insurance , and

 

property protection insurance , under this chapter and residual

 

liability insurance as described in section 3009. 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) "Golf cart" means a vehicle designed for transportation

 

while playing the game of golf.

 

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

 

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

 

     (g) "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) "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) "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) "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) "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) "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) "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) "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.

 

     (3) (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.

 

     Sec. 3103. (1) An owner or registrant of a motorcycle shall

 

may provide security against loss resulting from liability imposed

 

by law for property damage, bodily injury, or death suffered by a

 

person arising out of the ownership, maintenance, or use of that

 

the motorcycle, . The security shall conform with the requirements

 

of as described in section 3009(1).3009.

 

     (2) Each insurer transacting insurance in this state which

 

that affords coverage for a motorcycle as described in subsection

 

(1) also shall offer, to an owner or registrant of a motorcycle,

 

security for the payment of first-party medical benefits only, in

 

increments of $5,000.00, payable in the event if the owner or

 

registrant is involved in a motorcycle accident. An insurer

 

providing first-party medical benefits under this subsection may

 

offer, at appropriate premium rates, deductibles, provisions for

 

the coordination of these benefits, and provisions for the

 

subtraction of other benefits provided or required to be provided

under the laws of any state or the federal government, subject to

 

the prior approval of the commissioner. director. These deductibles

 

and provisions shall must apply only to benefits payable to the

 

person named in the policy, the spouse of the insured, and any

 

relative of either domiciled in the same household.

 

     Sec. 3104. (1) An The catastrophic claims association is

 

created as an unincorporated, nonprofit association. to be known as

 

the catastrophic claims association, hereinafter referred to as the

 

association, is created. Each insurer engaged in writing insurance

 

coverages that provide the security required by under section

 

3101(1) within in this state, as a condition of its authority to

 

transact insurance in this state, shall be a member of the

 

association and shall be is bound by the plan of operation of the

 

association. Each insurer engaged in writing insurance coverages

 

that provide the security required by section 3103(1) within this

 

state, as a condition of its authority to transact insurance in

 

this state, shall be considered a member of the association, but

 

only for purposes of premiums under subsection (7)(d). Except as

 

expressly provided in this section, the association is not subject

 

to any laws of this state with respect to insurers, but in all

 

other respects the association is subject to the laws of this state

 

to the extent that the association would be if it were an insurer

 

organized and subsisting under chapter 50.

 

     (2) The association shall provide and each member shall accept

 

indemnification for 100% of the amount of ultimate loss sustained

 

under personal protection insurance coverages as described in this

 

chapter in excess of the following amounts in each loss occurrence:

     (a) For a motor vehicle accident policy issued or renewed

 

before July 1, 2002, $250,000.00.

 

     (b) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2002 to June 30, 2003, $300,000.00.

 

     (c) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2003 to June 30, 2004, $325,000.00.

 

     (d) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2004 to June 30, 2005, $350,000.00.

 

     (e) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2005 to June 30, 2006, $375,000.00.

 

     (f) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2006 to June 30, 2007, $400,000.00.

 

     (g) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2007 to June 30, 2008, $420,000.00.

 

     (h) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2008 to June 30, 2009, $440,000.00.

 

     (i) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2009 to June 30, 2010, $460,000.00.

 

     (j) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2010 to June 30, 2011, $480,000.00.

 

     (k) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2011 to June 30, 2013, $500,000.00.

 

     (l) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2013 to June 30, 2015, $530,000.00.

 

     (m) For a motor vehicle accident policy issued or renewed

 

during the period July 1, 2015 to June 30 2017, $545,000.00.

 

     (n) For a motor vehicle accident policy issued or renewed

during the period July 1, 2017 to June 30, 2019, $555,000.00.

 

Beginning July 1, 2013, 2019, this $500,000.00 $555,000.00 amount

 

shall must be increased biennially on July 1 of each odd-numbered

 

year, for policies issued or renewed before July 1 of the following

 

odd-numbered year, by the lesser of 6% or the consumer price index,

 

Consumer Price Index, and rounded to the nearest $5,000.00. This

 

The association shall calculate this biennial adjustment shall be

 

calculated by the association by January 1 of the year of its July

 

1 effective date.

 

     (3) An insurer may withdraw from the association only upon on

 

ceasing to write insurance that provides the security required by

 

under section 3101(1) in this state.

 

     (4) An insurer whose membership in the association has been

 

terminated by withdrawal shall continue continues to be bound by

 

the plan of operation, and upon on withdrawal, all unpaid premiums

 

that have been charged to the withdrawing member are payable as of

 

the effective date of the withdrawal.

 

     (5) An unsatisfied net liability to the association of an

 

insolvent member shall must be assumed by and apportioned among the

 

remaining members of the association as provided in the plan of

 

operation. The association has all rights allowed by law on behalf

 

of the remaining members against the estate or funds of the

 

insolvent member for sums money due the association.

 

     (6) If a member has been merged or consolidated into another

 

insurer or another insurer has reinsured a member's entire business

 

that provides the security required by under section 3101(1) in

 

this state, the member and successors in interest of the member

remain liable for the member's obligations.

 

     (7) The association shall do all of the following on behalf of

 

the members of the association:

 

     (a) Assume 100% of all liability as provided in subsection

 

(2).

 

     (b) Establish procedures by which members shall promptly

 

report to the association each claim that, on the basis of the

 

injuries or damages sustained, may reasonably be anticipated to

 

involve the association if the member is ultimately held legally

 

liable for the injuries or damages. Solely for the purpose of

 

reporting claims, the member shall in all instances consider itself

 

legally liable for the injuries or damages. The member shall also

 

advise the association of subsequent developments likely to

 

materially affect the interest of the association in the claim.

 

     (c) Maintain relevant loss and expense data relative to all

 

liabilities of the association and require each member to furnish

 

statistics, in connection with liabilities of the association, at

 

the times and in the form and detail as may be required by the plan

 

of operation.

 

     (d) In a manner provided for in the plan of operation,

 

calculate and charge to members of the association a total premium

 

sufficient to cover the expected losses and expenses of the

 

association that the association will likely incur during the

 

period for which the premium is applicable. The premium shall must

 

include an amount to cover incurred but not reported losses for the

 

period and may be adjusted for any excess or deficient premiums

 

from previous periods. Excesses or deficiencies from previous

periods may be fully adjusted in a single period or may be adjusted

 

over several periods in a manner provided for in the plan of

 

operation. Each member shall must be charged an amount equal to

 

that member's total written car years of insurance providing the

 

security required by under section 3101(1) or 3103(1), or both,

 

written in this state during the period to which the premium

 

applies, multiplied by the average premium per car. The average

 

premium per car shall be is the total premium calculated divided by

 

the total written car years of insurance providing the security

 

required by under section 3101(1) or 3103(1) written in this state

 

of all members during the period to which the premium applies. A

 

member shall must be charged a premium for a historic vehicle that

 

is insured with the member of 20% of the premium charged for a car

 

insured with the member. As used in this subdivision:

 

     (i) "Car" includes a motorcycle but does not include a

 

historic vehicle.

 

     (ii) "Historic vehicle" means a vehicle that is a registered

 

historic vehicle under section 803a or 803p of the Michigan vehicle

 

code, 1949 PA 300, MCL 257.803a and 257.803p.

 

     (e) Require and accept the payment of premiums from members of

 

the association as provided for in the plan of operation. The

 

association shall do either of the following:

 

     (i) Require payment of the premium in full within 45 days

 

after the premium charge.

 

     (ii) Require payment of the premiums to be made periodically

 

to cover the actual cash obligations of the association.

 

     (f) Receive and distribute all sums money required by the

operation of the association.

 

     (g) Establish procedures for reviewing claims procedures and

 

practices of members of the association. If the claims procedures

 

or practices of a member are considered inadequate to properly

 

service the liabilities of the association, the association may

 

undertake or may contract with another person, including another

 

member, to adjust or assist in the adjustment of claims for the

 

member on claims that create a potential liability to the

 

association and may charge the cost of the adjustment to the

 

member.

 

     (8) In addition to other powers granted to it by this section,

 

the association may do all of the following:

 

     (a) Sue and be sued in the name of the association. A judgment

 

against the association shall does not create any direct liability

 

against the individual members of the association. The association

 

may provide for the indemnification of its members, members of the

 

board of directors of the association, and officers, employees, and

 

other persons lawfully acting on behalf of the association.

 

     (b) Reinsure all or any portion of its potential liability

 

with reinsurers licensed to transact insurance in this state or

 

approved by the commissioner.director of the department.

 

     (c) Provide for appropriate housing, equipment, and personnel

 

as may be necessary to assure the efficient operation of the

 

association.

 

     (d) Pursuant to the plan of operation, adopt reasonable rules

 

for the administration of the association, enforce those rules, and

 

delegate authority, as the board considers necessary to assure the

proper administration and operation of the association consistent

 

with the plan of operation.

 

     (e) Contract for goods and services, including independent

 

claims management, actuarial, investment, and legal services, from

 

others within in or without outside of this state to assure the

 

efficient operation of the association.

 

     (f) Hear and determine complaints of a company or other

 

interested party concerning the operation of the association.

 

     (g) Perform other acts not specifically enumerated in this

 

section that are necessary or proper to accomplish the purposes of

 

the association and that are not inconsistent with this section or

 

the plan of operation.

 

     (9) A board of directors is created , hereinafter referred to

 

as the board, which shall be responsible for the operation of and

 

shall operate the association consistent with the plan of operation

 

and this section.

 

     (10) The plan of operation shall must provide for all of the

 

following:

 

     (a) The establishment of necessary facilities.

 

     (b) The management and operation of the association.

 

     (c) Procedures to be utilized in charging premiums, including

 

adjustments from excess or deficient premiums from prior periods.

 

     (d) Procedures governing the actual payment of premiums to the

 

association.

 

     (e) Reimbursement of each member of the board by the

 

association for actual and necessary expenses incurred on

 

association business.

     (f) The investment policy of the association.

 

     (g) Any other matters required by or necessary to effectively

 

implement this section.

 

     (11) Each The board shall must include members that would

 

contribute a total of not less than 40% of the total premium

 

calculated pursuant to under subsection (7)(d). Each director shall

 

be is entitled to 1 vote. The initial term of office of a director

 

shall be is 2 years.

 

     (12) As part of the plan of operation, the board shall adopt

 

rules providing for the composition and term of successor boards to

 

the initial board, consistent with the membership composition

 

requirements in subsections (11) and (13). Terms of the directors

 

shall must be staggered so that the terms of all the directors do

 

not expire at the same time and so that a director does not serve a

 

term of more than 4 years.

 

     (13) The board shall must consist of 5 directors , and the

 

commissioner director of the department, who shall be serve as an

 

ex officio member of the board without vote.

 

     (14) Each director shall be appointed by the commissioner and

 

The director of the department shall appoint the directors. A

 

director shall serve until that member's his or her successor is

 

selected and qualified. The chairperson of the board shall be

 

elected by the board. A elect a chairperson. The director of the

 

department shall fill any vacancy on the board shall be filled by

 

the commissioner consistent with as provided in the plan of

 

operation.

 

     (15) After the board is appointed, the The board shall meet as

often as the chairperson, the commissioner, director of the

 

department, or the plan of operation shall require, requires, or at

 

the request of any 3 members of the board. The chairperson shall

 

retain the right to may vote on all issues. Four members of the

 

board constitute a quorum.

 

     (16) An annual report of the operations of the association in

 

a form and detail as may be determined by the board shall must be

 

furnished to each member.

 

     (17) Not more than 60 days after the initial organizational

 

meeting of the board, the board shall submit to the commissioner

 

for approval a proposed plan of operation consistent with the

 

objectives and provisions of this section, which shall provide for

 

the economical, fair, and nondiscriminatory administration of the

 

association and for the prompt and efficient provision of

 

indemnity. If a plan is not submitted within this 60-day period,

 

then the commissioner, after consultation with the board, shall

 

formulate and place into effect a plan consistent with this

 

section.

 

     (18) The plan of operation, unless approved sooner in writing,

 

shall be considered to meet the requirements of this section if it

 

is not disapproved by written order of the commissioner within 30

 

days after the date of its submission. Before disapproval of all or

 

any part of the proposed plan of operation, the commissioner shall

 

notify the board in what respect the plan of operation fails to

 

meet the requirements and objectives of this section. If the board

 

fails to submit a revised plan of operation that meets the

 

requirements and objectives of this section within the 30-day

period, the commissioner shall enter an order accordingly and shall

 

immediately formulate and place into effect a plan consistent with

 

the requirements and objectives of this section.

 

     (17) (19) The proposed plan of operation or Any amendments to

 

the plan of operation of the association are subject to majority

 

approval by the board, ratified ratification by a majority of the

 

membership having a vote, with voting rights being apportioned

 

according to the premiums charged in subsection (7)(d), and are

 

subject to approval by the commissioner.director of the department.

 

     (18) (20) Upon approval by the commissioner and ratification

 

by the members of the plan submitted, or upon the promulgation of a

 

plan by the commissioner, each insurer authorized to write

 

insurance providing the security required by section 3101(1) in

 

this state, as provided in this section, A member of the

 

association is bound by and shall formally subscribe to and

 

participate in the plan approved of operation as a condition of

 

maintaining its authority to transact insurance in this state.

 

     (19) (21) The association is subject to all the reporting,

 

loss reserve, and investment requirements of the commissioner

 

director of the department to the same extent as would a member are

 

the members of the association.

 

     (20) (22) Premiums charged members by the association shall

 

must be recognized in the rate-making procedures for insurance

 

rates for motor vehicle accident policies in the same manner that

 

expenses and premium taxes are recognized.

 

     (21) (23) The commissioner director of the department or an

 

authorized representative of the commissioner director of the

department may visit the association at any time and examine any

 

and all of the association's affairs.

 

     (22) (24) The association does not have liability for losses

 

occurring before July 1, 1978. The association does not have

 

liability for losses if the amount of personal protection insurance

 

provided under the applicable motor vehicle accident policy is less

 

than the applicable indemnification amount under subsection (2).

 

     (23) (25) As used in this section:

 

     (a) "Consumer price index" means the percentage of change in

 

the consumer price index for all urban consumers in the United

 

States city average for all items for the 24 months prior to

 

October 1 of the year prior to the July 1 effective date of the

 

biennial adjustment under subsection (2)(k) as reported by the

 

United States department of labor, bureau of labor statistics, and

 

as certified by the commissioner.

 

     (a) "Association" means the catastrophic claims association

 

created in subsection (1).

 

     (b) "Board" means the board of directors of the association

 

created in subsection (9).

 

     (c) (b) "Motor vehicle accident policy" means a policy

 

providing the coverages required under section 3101(1).

 

     (d) (c) "Ultimate loss" means the actual loss amounts that a

 

member is obligated to pay and that are paid or payable by the

 

member, and do not include claim expenses. An ultimate loss is

 

incurred by the association on the date that the loss occurs.

 

     Sec. 3107. (1) Except as otherwise provided in subsection (2),

 

this chapter, personal protection insurance benefits are payable

for the following:

 

     (a) Allowable expenses consisting of all reasonable charges

 

incurred, up to any applicable coverage limit under section 3109a,

 

for reasonably necessary products, services and accommodations for

 

an injured person's care, recovery, or rehabilitation. Allowable

 

expenses within personal protection insurance coverage shall do not

 

include either any of the following:

 

     (i) Charges for a hospital room in excess of a reasonable and

 

customary charge for semiprivate accommodations, except if unless

 

the injured person requires special or intensive care.

 

     (ii) Funeral and burial expenses in excess of the amount set

 

forth in the policy which shall must not be less than $1,750.00 or

 

more than $5,000.00.

 

     (b) Work loss consisting of loss of income from work an

 

injured person would have performed during the first 3 years after

 

the date of the accident if he or she had not been injured. Work

 

loss does not include any loss after the date on which the injured

 

person dies. Because the benefits received from personal protection

 

insurance for loss of income are not taxable income, the benefits

 

payable for such loss of income shall must be reduced 15% unless

 

the claimant presents to the insurer in support of his or her claim

 

reasonable proof of a lower value of the income tax advantage in

 

his or her case, in which case the lower value shall apply. must be

 

applied. For the period beginning October 1, 2012 through September

 

30, 2013, the benefits payable for work loss sustained in a single

 

30-day period and the income earned by an injured person for work

 

during the same period together shall must not exceed $5,189.00,

which maximum shall apply must be applied pro rata to any lesser

 

period of work loss. Beginning October 1, 2013, the maximum shall

 

must be adjusted annually to reflect changes in the cost of living

 

under rules prescribed by the commissioner director, but any change

 

in the maximum shall apply applies only to benefits arising out of

 

accidents occurring subsequent to an accident that occurs after the

 

date of change in the maximum.

 

     (c) Expenses not exceeding $20.00 per day, reasonably incurred

 

in obtaining ordinary and necessary services in lieu of those that,

 

if he or she had not been injured, an injured person would have

 

performed during the first 3 years after the date of the accident,

 

not for income but for the benefit of himself or herself or of his

 

or her dependent.

 

     (2) Both of the following apply to personal protection

 

insurance benefits payable under subsection (1):

 

     (a) A person who is 60 years of age or older and in the event

 

of an accidental bodily injury would not be eligible to receive

 

work loss benefits under subsection (1)(b) may waive coverage for

 

work loss benefits by signing a waiver on a form provided by the

 

insurer. An insurer shall offer a reduced premium rate to a person

 

who waives coverage under this subsection subdivision for work loss

 

benefits. Waiver of coverage for work loss benefits applies only to

 

work loss benefits payable to the person or persons who have signed

 

the waiver form.

 

     (b) An insurer shall is not be required to provide coverage

 

for the medical use of marihuana or for expenses related to the

 

medical use of marihuana.

     Sec. 3109a. (1) An insurer providing personal protection

 

insurance benefits under this chapter may offer, at appropriately

 

reduced premium rates, deductibles and exclusions reasonably

 

related to other health and accident coverage on the insured. Any

 

deductibles and exclusions offered under this section are subject

 

to prior approval by the commissioner director and shall must apply

 

only to benefits payable to the insured person named in the policy,

 

the spouse of the insured person, and any relative of either

 

domiciled in the same household.

 

     (2) For an insurance policy that provides personal protection

 

insurance benefits under this chapter and is issued or renewed

 

after the effective date of the amendatory act that added this

 

subsection, the insured person named in the policy shall select 1

 

of the following coverage levels for the personal protection

 

insurance benefits:

 

     (a) A limit per individual per loss occurrence on personal

 

protection insurance benefits under this chapter in an amount as

 

stated in the policy and agreed on by the insurer and the insured

 

person.

 

     (b) No maximum limit per individual per loss occurrence on

 

personal protection insurance benefits under this chapter.

 

     (3) All of the following apply to subsection (2):

 

     (a) If the insured person named in the policy selects a

 

coverage limit under subsection (2)(a), the coverage limit under

 

subsection (2)(a) applies to personal protection insurance benefits

 

payable under the policy to the insured person, the insured

 

person's spouse, a relative of either domiciled in the same

household, and any other person with a right to claim personal

 

protection insurance benefits under the policy.

 

     (b) If the insured person named in the policy does not select

 

a coverage limit under subsection (2)(a) for a policy, no maximum

 

limit applies to personal protection insurance benefits payable

 

under the policy to the insured person, the insured person's

 

spouse, a relative of either domiciled in the same household, or

 

any other resident of this state with a right to claim personal

 

protection benefits under the policy.

 

     (c) If the coverage limit under subsection (2)(a) applies to a

 

person claiming personal protection insurance benefits, the

 

coverage limit applies on a per occurrence per loss basis

 

notwithstanding the number of policies applicable to the occurrence

 

or the loss.

 

     Sec. 3111. Personal protection insurance benefits under this

 

chapter are payable for accidental bodily injury suffered in an

 

accident occurring out of this state, if the accident occurs within

 

in the United States, its territories and possessions or in Canada,

 

and the person whose injury is the basis of the claim was at the

 

time of the accident a named insured under a personal protection an

 

insurance policy that provided security under section 3101, his the

 

person's spouse, a relative of either domiciled in the same

 

household or an occupant of a vehicle involved in the accident

 

whose owner or registrant was insured under a personal protection

 

an insurance policy or has provided security approved by the

 

secretary of state under subsection (4) of that provided security

 

under section 3101.

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

 

protection insurance benefits under this chapter for accidental

 

bodily injury if at the time of the accident any 1 or more of the

 

following circumstances existed:

 

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

 

motor vehicle or motorcycle that was taken unlawfully, and the

 

person knew or should have known that the motor vehicle or

 

motorcycle was taken unlawfully.

 

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

 

vehicle or motorcycle involved in the accident with respect to

 

which the security required by under section 3101 or 3103 3103(2)

 

was not in effect.

 

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

 

     (e) The person was the owner or operator of a motor vehicle

 

for which coverage was excluded under a policy exclusion authorized

 

under section 3017.

 

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

 

(5), a personal protection an insurance policy described in that

 

provides security under section 3101(1) 3101 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 An insurance policy described in that provides security

 

under 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. 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 If a person suffering suffers accidental bodily injury

 

while an operator or a passenger of a motor vehicle operated in the

 

business of transporting passengers, shall receive the insurer of

 

the motor vehicle shall pay 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 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 under 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 transportation network company vehicle.

 

     (3) An If 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 as to which an insurance policy that

 

provides security under section 3101 is in effect, the insurer of

 

the furnished vehicle shall receive pay personal protection

 

insurance benefits to which the employee, spouse, or relative is

 

entitled. from the insurer of the furnished vehicle.

 

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

 

suffering who suffers accidental bodily injury arising from a motor

 

vehicle accident while an occupant of a motor vehicle as to which

 

an insurance policy that provides security under section 3101 is in

 

effect 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 who suffers accidental bodily injury

 

arising from a motor vehicle accident that shows evidence of the

involvement of a motor vehicle as to which an insurance policy that

 

provides security under section 3101 is in effect while the person

 

is 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, if the operator's motor

 

vehicle insurance policy provides security under section 3101.

 

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

 

the motorcycle involved in the accident, if the owner or

 

registrant's motor vehicle insurance policy provides security under

 

section 3101.

 

     (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,

 

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) "Personal vehicle", "prearranged ride", and

 

"transportation network company digital network", and

 

"transportation network company prearranged ride" mean those terms

as defined in section 2 of the limousine, taxicab, and

 

transportation network company act, 2016 PA 345, MCL 257.2102.

 

     (b) "Transportation network company vehicle" means a personal

 

vehicle while the driver is logged on to the transportation network

 

company digital network or while the driver is engaged in a

 

transportation network company prearranged ride.

 

     Sec. 3115. (1) Except as provided in subsection (1) of section

 

3114, 3114(1), a person suffering who suffers accidental bodily

 

injury while not an occupant of a motor vehicle shall claim

 

personal protection insurance benefits from insurers in the

 

following order of priority:

 

     (a) Insurers of owners or registrants of motor vehicles

 

involved in the accident as to which an insurance policy that

 

provides security under section 3101 is in effect.

 

     (b) Insurers of operators of motor vehicles involved in the

 

accident as to which an insurance policy that provides security

 

under section 3101 is in effect.

 

     (2) When 2 or more insurers are in the same order of priority

 

to provide personal protection insurance benefits an insurer paying

 

benefits due is entitled to partial recoupment from the other

 

insurers in the same order of priority, together with a reasonable

 

amount of partial recoupment of the expense of processing the

 

claim, in order to accomplish equitable distribution of the loss

 

among such insurers.

 

     (3) A limit upon on the amount of personal protection

 

insurance benefits available because of accidental bodily injury to

 

1 person arising from 1 motor vehicle accident shall must be

determined without regard to the number of policies applicable to

 

the accident.

 

     Sec. 3116. (1) A subtraction from personal protection

 

insurance benefits shall paid or payable under this chapter must

 

not be made because of the value of a claim in tort based on the

 

same accidental bodily injury.

 

     (2) A subtraction from or reimbursement for personal

 

protection insurance benefits paid or payable under this chapter

 

shall must be made only if recovery is realized upon on a tort

 

claim arising from an accident occurring outside this state , a

 

tort claim brought within this state against the owner or operator

 

of a motor vehicle with respect to which the security required by

 

section 3101 (3) and (4) was not in effect, or a tort claim brought

 

within in this state based on intentionally caused harm to persons

 

or property, and shall must be made only to the extent that the

 

recovery realized by the claimant is for damages for which the

 

claimant has received or would otherwise be entitled to receive

 

personal protection insurance benefits. A subtraction shall must be

 

made only to the extent of the recovery, exclusive of reasonable

 

attorneys' fees and other reasonable expenses incurred in effecting

 

the recovery. If personal protection insurance benefits have

 

already been received, the claimant shall repay to the insurers out

 

of the recovery a sum equal to the benefits received, but not more

 

than the recovery exclusive of reasonable attorneys' fees and other

 

reasonable expenses incurred in effecting the recovery. The insurer

 

shall have has a lien on the recovery to this extent. A recovery by

 

an injured person or his or her estate for loss suffered by the

person shall must not be subtracted in calculating benefits due a

 

dependent after the death and a recovery by a dependent for loss

 

suffered by the dependent after the death shall must not be

 

subtracted in calculating benefits due the injured person.

 

     (3) A personal protection insurer with a right of

 

reimbursement under subsection (1) , if suffering that suffers loss

 

from because of the inability to collect reimbursement out of a

 

payment received by a claimant upon on a tort claim is entitled to

 

indemnity from a person who, with notice of the insurer's interest,

 

made the payment to the claimant without making the claimant and

 

the insurer joint payees as their interests may appear or without

 

obtaining the insurer's consent to a different method of payment.

 

     (4) A subtraction or reimbursement shall under this section is

 

not be due owed to the claimant's insurer from that portion of any

 

recovery to the extent that the recovery is realized for

 

noneconomic loss as provided in section 3135(1) and (2)(b) or for

 

allowable expenses, work loss, and survivor's loss as defined in

 

sections 3107 to 3110 in excess of the amount recovered by the

 

claimant from his or her insurer.

 

     Sec. 3121. (1) Under For property protection insurance an

 

provided by an insurance policy that provides security under

 

section 3101, the insurer is liable to pay benefits for accidental

 

damage to tangible property arising out of the ownership,

 

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

 

vehicle subject to the provisions of as provided in this section

 

and sections 3123, 3125, and 3127. However, accidental damage to

 

tangible property does not include accidental damage to tangible

property, other than the insured motor vehicle, that occurs within

 

the course of a business of repairing, servicing, or otherwise

 

maintaining motor vehicles.

 

     (2) Property protection insurance benefits are due under the

 

conditions stated in this chapter without regard to fault.

 

     (3) Damage to tangible property consists of physical injury to

 

or destruction of the property and loss of use of the property so

 

injured or destroyed.

 

     (4) Damage to tangible property is accidental, as to a person

 

claiming property protection insurance benefits, unless it is

 

suffered or caused intentionally by the claimant. Even though a

 

person knows that damage to tangible property is substantially

 

certain to be caused by his or her act or omission, he or she does

 

not cause or suffer such the damage intentionally if he or she acts

 

or refrains from acting for the purpose of averting injury to any

 

person, including himself or herself, or for the purpose of

 

averting damage to tangible property.

 

     (5) Property protection insurance benefits consist of the

 

lesser of reasonable repair costs or replacement costs less

 

depreciation and, if applicable, the value of loss of use. However,

 

property protection insurance benefits paid under 1 policy for

 

damage to all tangible property arising from 1 accident shall not

 

exceed $1,000,000.00.is limited to the amount stated in the policy

 

as agreed on by the insurer and the person insured.

 

     Sec. 3125. A person suffering that suffers accidental property

 

damage shall claim property protection insurance benefits under

 

this chapter from insurers in the following order of priority:

insurers

 

     (a) Insurers of owners or registrants of vehicles involved in

 

the accident ; and insurers as to which an insurance policy that

 

provides security under section 3101 is in effect.

 

     (b) Insurers of operators of vehicles involved in the accident

 

as to which an insurance policy that provides security under

 

section 3101 is in effect.

 

     Sec. 3131. (1) Residual liability insurance shall under an

 

insurance policy that provided security under section 3101 must

 

cover bodily injury and property damage which that occurs within in

 

the United States, its territories and possessions, or in Canada.

 

This insurance shall must afford coverage equivalent to that

 

required as evidence of automobile liability insurance under the

 

financial responsibility laws of the place in which the injury or

 

damage occurs. In this state, this insurance shall must afford

 

coverage for automobile liability retained by section 3135.

 

     (2) This section shall does not require coverage in this state

 

other than that required by described in section 3009(1). This

 

section shall apply to all insurance contracts in force as of

 

October 1, 1973, or entered into after that date.

 

     Sec. 3135. (1) A person whose tort liability is abolished

 

under subsection (3) remains subject to tort liability for

 

noneconomic loss caused by his or her ownership, maintenance, or

 

use of a motor vehicle only if the injured person has suffered

 

death, serious impairment of body function, or permanent serious

 

disfigurement.

 

     (2) For a cause of action for damages pursuant to as to which

tort liability is not abolished under subsection (1), filed on or

 

after July 26, 1996, all both of the following apply:

 

     (a) The issues of whether the injured person has suffered

 

serious impairment of body function or permanent serious

 

disfigurement are questions of law for the court if the court finds

 

either of the following:

 

     (i) There is no factual dispute concerning the nature and

 

extent of the person's injuries.

 

     (ii) There is a factual dispute concerning the nature and

 

extent of the person's injuries, but the dispute is not material to

 

the determination whether the person has suffered a serious

 

impairment of body function or permanent serious disfigurement.

 

However, for a closed-head injury, a question of fact for the jury

 

is created if a licensed allopathic or osteopathic physician who

 

regularly diagnoses or treats closed-head injuries testifies under

 

oath that there may be a serious neurological injury.

 

     (b) Damages shall must be assessed on the basis of comparative

 

fault, except that damages shall must not be assessed in favor of a

 

party who is more than 50% at fault.

 

     (c) Damages shall not be assessed in favor of a party who was

 

operating his or her own vehicle at the time the injury occurred

 

and did not have in effect for that motor vehicle the security

 

required by section 3101 at the time the injury occurred.

 

     (3) Notwithstanding any other provision of law, tort liability

 

arising from the ownership, maintenance, or use within in this

 

state of a motor vehicle with respect to which the security

 

required by under section 3101 was in effect is abolished. except

as to:This subsection does not apply to any of the following:

 

     (a) Intentionally caused harm to persons or property. Even

 

though a person knows that harm to persons or property is

 

substantially certain to be caused by his or her act or omission,

 

the person does not cause or suffer that harm intentionally if he

 

or she acts or refrains from acting for the purpose of averting

 

injury to any person, including himself or herself, or for the

 

purpose of averting damage to tangible property.

 

     (b) Damages for noneconomic loss as provided and limited in

 

subsections (1) and (2).

 

     (c) Damages for allowable expenses, work loss, and survivor's

 

loss as defined in sections 3107 to 3110 in excess of the daily,

 

monthly, and 3-year limitations contained in those sections. The

 

party liable for damages is entitled to an exemption reducing his

 

or her liability by the amount of taxes that would have been

 

payable on account of income the injured person would have received

 

if he or she had not been injured.

 

     (d) Damages for economic loss by a nonresident. in excess of

 

the personal protection insurance benefits provided under section

 

3163(4). Damages under this subdivision are not recoverable to the

 

extent that benefits covering the same loss are available from

 

other sources, regardless of the nature or number of benefit

 

sources available and regardless of the nature or form of the

 

benefits.

 

     (e) Damages up to $1,000.00 to a motor vehicle, to the extent

 

that the damages are not covered by insurance. An action for

 

damages under this subdivision shall must be conducted as provided

in subsection (4).

 

     (4) All of the following apply to an action for damages under

 

subsection (3)(e):

 

     (a) Damages shall must be assessed on the basis of comparative

 

fault, except that damages shall must not be assessed in favor of a

 

party who is more than 50% at fault.

 

     (b) Liability is not a component of residual liability, as

 

prescribed in section 3131, for which maintenance of security is

 

required by this act.

 

     (b) (c) The action shall must be commenced, whenever legally

 

possible, in the small claims division of the district court or the

 

municipal court. If the defendant or plaintiff removes the action

 

to a higher court and does not prevail, the judge may assess costs.

 

     (c) (d) A decision of the court is not res judicata in any

 

proceeding to determine any other liability arising from the same

 

circumstances that gave rise to the action.

 

     (e) Damages shall not be assessed if the damaged motor vehicle

 

was being operated at the time of the damage without the security

 

required by section 3101.

 

     (5) As used in this section, "serious impairment of body

 

function" means an objectively manifested impairment of an

 

important body function that affects the person's general ability

 

to lead his or her normal life.

 

     Sec. 3141. An insurer may require written notice to be given

 

as soon as practicable after an accident involving a motor vehicle

 

with respect as to which the an insurance policy affords the that

 

provides security required by this chapter.under section 3101 is in

effect.

 

     Sec. 3171. (1) Until an assigned claims plan is approved under

 

subsection (3), the secretary of state shall organize and maintain

 

an assigned claims facility and plan. A self-insurer and insurer

 

writing insurance as provided by this chapter in this state shall

 

participate in the assigned claims plan. Costs incurred in the

 

operation of the facility and the plan shall be allocated fairly

 

among insurers and self-insurers. The secretary of state shall

 

promulgate rules to implement the facility and plan in accordance

 

with and subject to the administrative procedures act of 1969, 1969

 

PA 306, MCL 24.201 to 24.328. After an assigned claims plan is

 

approved under subsection (3), the secretary of state shall

 

continue to maintain the assigned claims facility and plan

 

organized under this subsection as required by the plan approved

 

under subsection (3).

 

     (1) (2) The Michigan automobile insurance placement facility

 

shall adopt and maintain an assigned claims plan. A self-insurer or

 

insurer writing insurance as provided by this chapter policies that

 

provide security under section 3101 in this state shall participate

 

in the assigned claims plan. Costs incurred in the administration

 

of the assigned claims plan shall must be allocated fairly among

 

insurers and self-insurers. On approval under subsection (3), the

 

Michigan automobile insurance placement facility shall implement

 

the assigned claims plan.

 

     (2) (3) By August 1, 2012, the The Michigan automobile

 

insurance placement facility board of governors shall adopt an any

 

amendment to the assigned claims plan by majority vote and shall

submit it to the commissioner director for his or her approval. The

 

commissioner director shall review the plan amendment within 30

 

days and respond in writing as provided in this subsection. If the

 

commissioner director finds that the plan amendment meets the

 

requirements of this chapter, he or she shall approve it. If the

 

commissioner director finds that the plan amendment fails to meet

 

the requirements of this chapter, he or she shall state in what

 

respects the plan amendment is deficient and shall afford the

 

Michigan automobile insurance placement facility board of governors

 

10 days within which to correct the deficiency. If the commissioner

 

director and the Michigan automobile insurance placement facility

 

board of governors fail to agree that the plan amendment submitted,

 

with any corrections, meets the requirements of this chapter,

 

either party to the controversy may submit the issue to the circuit

 

court for Ingham county County for a determination. If the

 

commissioner director fails to render a written decision on the

 

amendment to the assigned claims plan within 30 days after receipt

 

of the plan, amendment, the plan shall be amendment is considered

 

approved. The Michigan automobile insurance placement facility

 

shall forward a plan an amendment approved under this subsection to

 

the secretary of state. The plan amendment takes effect on approval

 

by the commissioner.director.

 

     (4) Amendments to the assigned claims plan approved under

 

subsection (3) shall be adopted by the board of governors and

 

approved by the commissioner as provided in subsection (3). Until

 

the date established in the plan under subsection (5)(c), the board

 

of governors shall give the secretary of state advance notice of