Insurance: no-fault; denial of claim based on failure to list all household members on policy; prohibit. Amends sec. 3114 of 1956 PA 218 (MCL 500.3114).
Impact
The proposed changes aim to affect the handling of claims under no-fault insurance policies in Michigan. By removing the stipulation that all household members must be listed, the bill hopes to reduce the instances of claim denial that result in gaps of coverage due to administrative oversights. This is especially critical in cases where family members may be using a vehicle that is insured under a policy that may not explicitly cover them due to not being listed.
Summary
Senate Bill 0782 seeks to amend Michigan's Insurance Code specifically concerning personal protection insurance policies. The bill plans to prohibit insurers from denying coverage for a motor vehicle accident solely based on whether a relative domiciled in the household was listed on the insurance application. This amendment is designed to ensure that individuals involved in motor vehicle accidents are afforded the protections they generally expect under their insurance policies, regardless of who is listed on the policy itself.
Contention
There may be potential concerns regarding the implications of this bill, particularly related to insurance companies' business practices. Some opponents of the bill may argue that it could lead to increased risks for insurers as they may have to cover additional claims from unlisted household members, potentially causing higher premiums across the board. Additionally, stakeholders might debate how this could affect the underwriting process and what it means for overall insurance rates in the state.
Notable_points
Notably, the bill emerges in the context of ongoing discussions around fairness in insurance coverage and the accessibility of personal injury protection for all drivers. The implications of this bill could set a precedent for how insurance policies are structured in Michigan, particularly concerning family member coverage, which might resonate with ongoing national dialogues about no-fault insurance systems more broadly.
Insurance: no-fault; personal protection insurance benefits for individuals in a motor vehicle operated in the business of transporting passengers; modify. Amends sec. 3114 of 1956 PA 218 (MCL 500.3114). TIE BAR WITH: HB 5299'25
Insurance: no-fault; coverage and benefits; make miscellaneous changes. Amends secs. 3101, 3104, 3107c, 3107d, 3114, 3135 & 3172 of 1956 PA 218 (MCL 500.3101 et seq.) & repeals 3107d of 1956 PA 218 (MCL 500.3107d). TIE BAR WITH: HB 5887'26, HB 5888'26, HB 5889'26
Insurance: no-fault; penalties for lapse of insurance policy; eliminate. Amends secs. 2116b, 2118 & 2120 of 1956 PA 218 (MCL 500.2116b et seq.) & repeals sec. 2116a of 1956 PA 218 (MCL 500.2116a).
Insurance: no-fault; election to opt out of PIP coverage; modify length of election. Amends sec. 3109a of 1956 PA 218 (MCL 500.3109a) & adds sec. 3015. TIE BAR WITH: HB 5886'26, HB 5888'26, HB 5889'26
Insurance: no-fault; personal protection insurance benefits; revise definitions in section because of other amendments. Amends sec. 3107c of 1956 PA 218 (MCL 500.3107c). TIE BAR WITH: HB 5298'25
Insurance: other; certain references in the insurance code; make gender neutral. Amends secs. 2207, 2209, 3110 & 3402 of 1956 PA 218 (MCL 500.2207 et seq.). TIE BAR WITH: HJR F'25
Prohibiting insurance companies from considering the driving record of household members not covered by the motor vehicle insurance policy when establishing policy premiums.