A bill to amend 1956 PA 218, entitled “The insurance code of 1956,” by amending section 3107c (MCL 500.3107c), as added by 2019 PA 22.
Senate Bill No. 904 aims to amend the Michigan Insurance Code of 1956, specifically targeting section 3107c to revise the process and options for selecting personal protection insurance (PIP) coverage levels. This bill is relevant for policies issued or renewed after July 1, 2020, and introduces four coverage options for applicants or named insureds to choose from: $50,000, $250,000, $500,000, or unlimited coverage. The $50,000 coverage option is specifically designated for Medicaid enrollees who meet certain criteria.
The bill mandates that the selection form must clearly state the benefits and risks associated with each coverage option, ensuring that applicants or named insureds acknowledge and understand their choices by requiring their signature on the form. If an applicant or named insured fails to make a selection but pays premiums, a presumption is established that the premium amount reflects the chosen coverage level.
Additionally, the bill specifies that the chosen coverage level applies not only to the insured but also to their spouse and relatives living in the same household. For transportation network companies, only the higher coverage limits are available. Insurers are also required to offer a rider for attendant care coverage that exceeds the selected PIP limit.
This bill is tied to the enactment of Senate Bill No. 905.
Introduced
by
Referred to the Committee on Finance, Insurance, and Consumer Protection
