Insurance Bulletin Summaries
The Director of the Department of Insurance and Financial Services (DIFS) issues bulletins throughout each year on how auto insurance companies should conduct their business, procedures insurance companies must follow, and significant changes in the Michigan Auto No-Fault Law. All DIFS bulletins that are available and remain in effect regarding the Michigan Auto No-Fault Law are provided below. A brief summary of each bulletin is also provided to help you find the information you are looking for.
The Director adjusted the maximum work loss and survivor loss benefit. From October 1, 2018 through September 30, 2019, the maximum work loss and survivor loss benefit shall not exceed $5,700 per single 30-day period.
This bulletin clarified an insurer’s obligations to its insured. Following Covenant, the insurer still has a duty to defend a suit if there are any theories of recovery that fall within the policy. Moreover, Covenant did not alter insurers’ obligation to pay “reasonable charges” for “reasonably necessary” products, services, and accommodations for an injured person’s care.
This bulletin outlines the requirements and procedures for the use of named driver exclusions in Michigan and for the filing of named driver exclusion endorsements for approval by the Director.
This bulletin explains that insurance policies that provide for termination or rescission without notice in the event of fraud are unenforceable.
This bulletin explains that there are two types of deductibles available: a general deductible and a deductible that is “reasonably related” to other health and accident coverage (“penalty deductible”). The second type -the penalty deductible- requires prior approval from the Commissioner.
This bulletin explains that Michigan allows insurers to offer “pay as you drive” insurance, which is determined primarily or solely on the number of miles that an insured person drives.
This bulletin superseded bulletins 1979-10-INS and 1982-16-INS. This bulletin established reporting procedures for the Michigan Catastrophic Claims Association.
This bulletin set the maximum work loss and survivor loss benefit. This bulletin was superseded ultimately by Bulletin 2018-19-INS.
This bulletin reminds insurers that an applicant may certify that his vehicle has not been moved for the past six months. If the applicant so certifies, then the insurer cannot deny the applicant for lack of prior insurance.
This bulletin reminds insurers that “misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue” violates the Uniform Trade Practices Act, MCL 500.2026(a). Specifically addressed are no-fault providers who tell their customers that referral from a network physician may be necessary for coverage or that no-fault insurance will not cover medical needs that are not covered by an individual’s health insurance.
This bulletin informs no-fault providers that the Michigan Catastrophic Claims Association voted to return $1.2 billion of surplus to the companies. Further, the no-fault providers who receive the funds should be returned to insurance holder immediately.
This bulletin explains that a named non-owner coverage endorsement to a Michigan no-fault auto insurance policy provides auto liability coverage for someone who does not own an automobile but has an automobile owned by someone else available for his or her use. However, when attached to a no-fault policy, these endorsements provide only residual liability coverage. The other mandatory no-fault coverages, personal protection insurance and property protection insurance are not provided by these endorsements.
This bulletin informs insurance companies that the Commissioner has decided to allow them to use two new factors in deciding insurance premiums. The factors are: “years accident free” and “years insured by the insurer.” Further, these factors were found to be consistent with Chapter 21 and the no-fault statutory scheme in general.
This bulletin summarizes the Michigan Supreme Court’s holding in Great American Insurance Company v. Queen. If a successful claim for workers’ compensation benefits has been made on behalf of an individual injured in an automobile accident, the workers’ compensation benefits shall be subtracted from the no-fault benefits as provided in Section 3109(1).
This bulletin explains the provisions of Section 2105(2) and provides guidelines for review of group, franchise and blanket policies by the Commissioner.