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 5307'23
Impact
The adjustments proposed in HB 5308 may have profound implications for both policyholders and insurers. By allowing for more diverse coverage options, including lower-cost alternatives for qualified low-income individuals, the bill aims to improve accessibility to personal protection insurance. However, this also means that insurers might need to adjust their underwriting processes to accommodate the new selections. Furthermore, the bill creates a rebuttable presumption regarding coverage levels based on premiums paid if an applicant has not made an effective selection, adding a layer of complexity that insurers must navigate.
Summary
House Bill 5308 aims to amend the Michigan Insurance Code of 1956 specifically regarding personal protection insurance benefits, as outlined in section 3107c. The bill facilitates a choice of coverage levels for individuals when they apply for or renew their auto insurance policies. Specifically, it allows applicants to select coverage limits of $50,000, $250,000, $500,000, or an unlimited option, provided certain criteria are met. Notably, the lowest coverage level is available exclusively to those enrolled in Medicaid and whose cohabitants have qualifying health coverage or similar coverage from an insurer. This inclusion is particularly significant for low-income applicants as it tries to make auto insurance more affordable for them.
Contention
Notably, the bill ties its enactment to Senate Bill No. 5307, suggesting a coordinated legislative effort to amend the auto insurance landscape in Michigan. This tie-barred approach leads to potential contention regarding the interoperability of these bills and how they will influence existing law. Critics may argue that these changes, while aimed at providing options, could also create confusion among consumers and complicate claims processing due to varying coverage interpretations. Ensuring consumers fully understand their insurance options as per the new adjustments will be crucial to the effective implementation of this bill.
Same As
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 5308'23
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: SB 0905'24
Insurance: no-fault; cross reference in the insurance code; amend section to reflect elimination of referenced definition. Amends sec. 3107c of 1956 PA 218 (MCL 500.3107c).
Insurance: no-fault; cross-reference to amended section of the insurance code; revise. Amends sec. 2111f of 1956 PA 218 (MCL 500.2111f). TIE BAR WITH: SB 0530'23
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 5308'23
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: SB 0904'24
Insurance: no-fault; assigned claims plan; require unlimited-level benefit reimbursement for bicyclists. Amends sec. 3172 of 1956 PA 218 (MCL 500.3172).
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).
Relating to the creation of and the powers of a comprehensive multimodal urban transportation authority, including the power to impose taxes, issue bonds, and exercise limited eminent domain authority.