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Pending No-Fault Legislation

Pending No-Fault Legislation

The Michigan Legislature will propose various bills to change the Michigan No-Fault Act each legislative session. Each bill that is proposed and not passed will remain pending before the Legislature. Assembled below are the various 2017-2019 bills that were proposed and not passed in the Legislature that affect the Michigan No-Fault Act. These bills are still pending before the Legislature and can be adopted by the Legislature with an affirmative vote from both houses.

2019 Pending Michigan No-Fault Legislation

HB 4024
The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18). The proposed legislation would add new sections to 3109a. Insurance companies would be required to offer three levels of maximum personal protection insurance: (1) a limit of $250,000, (2) a limit of $500,000, or (3) no limit. The amendment would also require insurance companies that do not meet certain rate reduction amounts to provide a detailed explanation for why they failed to meet the reduction rates. It further allows the Director to review the rates and disapprove of certain premium rates.

HB 4080
The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18). The proposed legislation would require the Catastrophic Claims Association to provide all information that is requested by the Director and reimburse members of the association if required to do so by the Director. The proposed legislation would also require the association to bring in an independent actuary once every five years to examine the affairs and records of the association. Moreover, if the actuary finds any surplus, then that surplus would be distributed to the members of the Association.

HB 4111
The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18). The proposed legislation would require the Catastrophic Claims Association to provide all information that is requested by the Director and reimburse members of the association if required to do so by the Director. The proposed legislation would also require the Association to bring in an independent actuary once every five years to examine the affairs and records of the association.

SB 4001
The proposed legislation would allow people over the age of 62 to choose not to have personal injury protection benefits through the No-Fault Act. Moreover, the proposed legislation would provide independent oversight of medical treatment, services, and products related to the No-Fault Act.

SB 4004
The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18). The proposed legislation would require the Catastrophic Claims Association to provide all information that is requested by the Director and reimburse members of the association if required to do so by the Director. The proposed legislation would also require the Association to bring in an independent actuary once every five years to examine the affairs and records of the association.


2018 Pending Michigan No-Fault Legislation

HB 5517
The proposed legislation would allow an insured driver of a vehicle that has not been driven or moved on a highway to delete a portion of the coverage. Section 3104(2)(k) would also be amended so the Catastrophic Claims Association would no longer be able to bi-annually adjust the amount at which all member would be required to accepted 100% indemnification. It would replace the bi-annual adjustment with hard numbers for 2013, 2015, and 2017. The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18).

HB 5552
The proposed legislation would require insurance purchasers to choose between two levels of maximum personal protection. The choices would be (1) unlimited protection or (2) a limit equal to that of 3104(2). The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18).

HB 5553
The proposed legislation would allow a relative of an injured individual who provides attendant care to the injured person to receive the average customary wage of a direct care worker or the state minimum hourly rate, which ever is greater.

HB 5878
The proposed legislation would require the Catastrophic Claims Association to disclose all data used in computing the premiums it charges under 3104(d)(4). The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18).

HB 5981
The proposed legislation would add section 3009a to the No-Fault Act. Section 3009a would prohibit auto insurance companies from excluding or limiting coverage for spouses or domiciled relatives of the insured.

HB 6100
The proposed legislation would amend section 3109(3). This amendment would require auto insurance companies to provide personal protection deductibles and exclusion in increments up to a maximum of $50,000, which would correspond to a reduction in premium rates. It would also require the insurance purchaser to provide proof of health care to the insurance company.

HB 6118
The proposed legislation would require the Catastrophic Claims Association to make actuarial calculation using a life expectancy of 90 years. The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18).

HB 6263
The proposed legislation would require the Catastrophic Claims Association to provide all information that is requested by the Director and reimburse members of the association if required to do so by the Director. The proposed legislation would also require the association to bring in an independent actuary once every five years to examine the affairs and records of the association. The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18).

HB 6343
The proposed legislation would add new sections to 3109a. Insurance companies would be required to offer three levels of maximum personal protection insurance: (1) a limit of $250,000, (2) a limit of $500,000, or (3) no limit. The insurance providers would be required to offer the options to the insured. The amendment would also require insurance companies that do not meet certain rate reduction amounts to provide a detailed explanation for why they failed to meet the reduction rates. It further allows the Director to review the rates and disapprove of certain premium rates.

HB 6360
The proposed legislation would eliminate section 3101a, which requires an insurer to provide two certificates of insurance for each insured vehicle.

HB 6410
The proposed legislation would add section 3107c to the No-Fault Act. This additional section would require an auto insurance provider to pay for home health care under 3107(1)(a) if three criteria are met: (1) the services are ordered by a health professional, (2) the services are provided in the injured person’s home, and (3) the home health agency is accredited. This section would not apply to services not provided by a home health agency.

HB 6439
The proposed legislation would require the board to be subject to the Freedom of Information Act. The proposed legislation would require the association to disclose all data used in computing the premiums it charges under 3104(d)(4). The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18).

SB 0787
The proposed legislation would require an individual older than 65 years to choose between a limit of $50,000 in personal protection coverage or no limitation. The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18).

SB 1014
The proposed legislation would eliminate section 3101a, which requires an insurer to provide two certificates of insurance for each insured vehicle.  The proposed legislation would also add subsection 3107c, which would limit the amount paid for attendant care. The first 56 hours of attendant care would be paid at a “reasonable” rate, after that attendant care would be paid at a rate of $15 an hour. The proposed legislation would require an individual who is claiming no-fault benefits under a policy of a relative domiciled in the same household, which are reduced because of a selection of reduced coverage, to benefits collect from Assigned Claims Plan under section 3171. The proposed legislation would reduce the amount an auto insurer is required to provide to a qualified out of state inured motorist under section 3163(4) from $500,000 to $400,000. The legislation would also place the burden of proof on the injured motorist who brings a claim for benefits under section 3172(1).

SB 0820
The proposed legislation would eliminate section 3101a, which requires an insurer to provide two certificates of insurance for each insured vehicle. The proposed legislation would allow an insurance provider to not provide certification to the Secretary of State after the Director certifies that the electronic certification system is operational.


2017 Pending Michigan No-Fault Legislation

HB 4049
The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18). The proposed legislation would require the Catastrophic Claims Association to disclose all data used in computing the premiums it charges. The Association would be required to provide data regarding certain specific criteria it used in calculating the premiums it charged.

HB 4097
The proposed legislation would prohibit an insured individual from obtaining a refund after canceling his or her insurance policy unless specific criteria was met. To get a refund, the policy must have been for a term shorter than six months and canceled in accordance with subsection 3020(2)(c). The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18).

HB 4354
The proposed legislation would allow the Director to disapprove of any premium charged by the Catastrophic Claims Association that the Director considers to be excessive.

HB 4488
The proposed legislation would add subsection 3107c, which would allow an insurer to only pay for 56 hours of direct attendant care each week. The proposed legislation would mandate that insurance providers offer four choices to insurance purchasers for a maximum limitation of personal protection. The four choices are: (1) $250,000 limitation, (2) $500,000 limitation, (3) $1,000,000 limitation, or (4) no limitation. The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18).

HB 4624
The proposed legislation would add subsection 3172(c), which would require qualified individuals to file an application and proof of loss to the Assigned Claims Plan.

HB 4625
The proposed legislation would require qualified applicants to cooperate with the Michigan Automobile Insurance Placement Facility regarding eligibility for the Assigned Claims Plan. There would be a rebuttable presumption that an individual has cooperated if the individual submitted a claim, provided proof of loss, and submitted to (if required) an examination. The proposed legislation would also allow the Michigan Automobile Insurance Placement Facility to perform its functions directly or through an insurer assigned by the Michigan Automobile Insurance Placement Facility.

HB 4626
The proposed legislation would amend the language of section 3174 and require an individual to notify his or her no-fault provider within one year of the accident or initial determination of the claimant’s eligibility through the Assigned Claims Plan. It would also require an individual to follow section 3145 regarding the commencement of an action.

HB 4627
The proposed legislation would eliminate section 3101a, which requires an insurer to provide two certificates of insurance for each insured vehicle. The legislation would require an insurer to provide policy information as required by the Secretary of State.

HB 4890
The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18). The proposed legislation would require the Catastrophic Claims Association to disclose all data used in computing the premiums it charges. The Association would be required to provide data regarding certain specific criteria it used in calculating the premiums it charged.

HB 5013
The proposed legislation would define “qualified medical professional” as a physician, physician’s assistant, dentist, or advanced practice registered nurse. It would also require procedures to offer members of the Catastrophic Claims Association rebates for surplus money paid into the Association. It would eliminate section 3101a, which requires an insurer to provide two certificates of insurance for each insured vehicle. It would also require the Association to bring in an independent actuary once every five years to examine the affairs and records of the Association. It would allow an insurer to only pay for 56 hours of direct attendant care each week. The proposed legislation would mandate that insurance providers offer four choices to insurance purchasers for a maximum limitation of personal protection. The four choices are: (1) $250,000 limitation, (2) $500,000 limitation, (3) $1,000,000 limitation, or (4) no limitation. The legislation would limit the ability for attorneys to collect fees in certain instances where the attorneys have financial interests with the medical provider. It would also limit the amount that medical providers can charge for services. The legislation would also allow the Director to review insurance premiums that companies charge and disapprove of the premiums if they were not sufficiently reduced.

HB 5101
The proposed legislation would create an Independent Medical Examination Board consisting of physicians and specialists. The board would select and appoint licensed physicians to conduct examinations under section 3151.

HB 5102
The proposed legislation would increase the damage cap under section 3135(3)(e) from $1,000 to $5,000.

HB 5103
The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18). The legislation would also forbid the Association from interfering with an adjustment or settlement under section 3107(1)(a).

HB 5104
The proposed legislation would require an insurer to accept specific items as evidence of a health insurance plan for coordinated policies. The acceptable items would include: a copy of the health insurance plan, an explanation of benefits, or any other document from an authorized individual of the health insurance plan.

HB 5105
The proposed legislation would require certain criteria to be met for allowable medical expenses under section 3107. It would require the accident to be one of the causes of the injury and for the injury to not be incidental or attenuated to the accident. It would also disallow an insurance company to not pay for allowable expenses based on “everyday ordinary expenses.” It would also allow an injured person to submit “reasonable proof” that a product, service, or accommodation is reasonably necessary for the injured person’s care.

HB 5106
The proposed legislation would require certain criteria to be met for allowable medical expenses under section 3107. It would require the accident to be one of the causes of the injury and for the injury to not be incidental or attenuated to the accident It would also disallow an insurance company to not pay for allowable expenses based on “everyday ordinary expenses.” It would also allow an injured person to submit “reasonable proof” that a product, service, or accommodation is reasonably necessary for the injured person’s care.

HB 5107
The proposed legislation would require the Director to establish standards to determine if rates filed by an insurer reflect reasonably reduced premiums. It would also restrict the subrogation rights of medical providers to not be greater than those of the insured.

HB 5108
The proposed legislation would limit the amount payable for direct attendant care to $15 per hour except for cases of spinal cord injuries or head injuries. The limitations would not apply if the family member providing the care is licensed or otherwise authorized to provide attendant care. An insurance company may also contract with a family member to provider attendant care at a higher rate than $15 per hour.

HB 5109
The proposed legislation would change the standard of review for serious impairment of body function from a question of law to a question of fact. Summary disposition would only be granted if there was no genuine issue of material fact. Further, the legislation would define the first prong of serious impairment of body function as “observable or perceivable from actual symptoms or conditions.” the legislation would define the second prong of serious impairment of body function as a body function “of value.” Third, the legislation would define the third prong as having an influence on some of the injured person’s “capacity to live in his or her normal manner of living.” The legislation would also add replacement services to the recoverable benefits under the excess income cause of action.

HB 5110
The proposed legislation would change the time to file a claim for benefits from one year to three years.

HB 5115
The proposed legislation would create an independent statutory cause of action for no-fault benefits to medical providers.

HB 5124
The proposed legislation would allow a person who is older than 62 years to waive personal protection insurance coverage other than those benefits payable under long-term care insurance. If elected, the insurance company must then reduce the rates of the individual who waives personal protection coverage.

SB 0240
The proposed legislation would allow the Director to disapprove of any total premium amount that the Director found to be excessive. It would also eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18). It would also require the Board of the Catastrophic Claims Association to conduct its business in accordance with the Open Meeting Act and require any writings to comply with the Freedom of Information Act. Finally, it would require an audit of the Association by an independent accountant each year.

SB 0283
The proposed legislation would eliminate chiropractors from the list of medical providers no-fault providers are not required to pay for.

SB 0472
The proposed legislation would add section 3020(5), which would allow no-fault providers to issue 7, 14, 21, or 28 day prepaid no-fault policies.

SB 0722
The proposed legislation would eliminate the requirement that the board submit a plan of operation to the Director by eliminating subsections 3104(17), (18). It would also require the Board of the Catastrophic Claims Association to conduct its business in accordance with the Open Meeting Act and require any writings to comply with the Freedom of Information Act.