Michigan Senate Bill SB0904

Michigan 2023-2024 Regular Session

• Introduced: 6/6/24
• Refer: 6/6/24

Caption

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

Impact

The amendments are expected to significantly impact the insurance landscape in Michigan by giving policyholders more flexibility in choosing their coverage limits. Additionally, it introduces a requirement for insurance companies to offer a consumer-friendly form that explains the benefits and risks associated with each coverage option. This move aims to empower consumers to make more informed decisions about their insurance, potentially leading to a simpler and clearer understanding of their policies.

Summary

Senate Bill 0904 aims to amend the Michigan Insurance Code by revising section 3107c, specifically concerning personal protection insurance (PPI) benefits. This bill proposes optional coverage limits for insurance policies that provide the security mandated by section 3101. The limits proposed include various tiered levels, allowing for coverage as low as $50,000 to as high as $500,000 per individual per loss occurrence. Notably, the $50,000 limit is only permissible for applicants or named insureds who are enrolled in Medicaid and have certain family members with qualified health coverage.

Contention

However, the bill may face contention, particularly regarding the implications of the lowest coverage limit. Critics might argue that allowing such a low limit, especially for individuals reliant on Medicaid, could lead to insufficient financial protection in accidents or severe injuries. Furthermore, there may be concerns that the structure of the new requirements could complicate the insurance purchasing process for consumers who are not well-versed in insurance matters.

Notable_points

Additionally, the bill aligns with the rising trend of transportation network companies by including provisions that specifically apply to vehicles operated on such platforms. This ensures that drivers are equipped with appropriate personal protection insurance while engaged in ridesharing activities. Overall, while SB0904 presents a modernization of insurance requirements, it will be crucial to consider its ramifications on both consumers and insurance providers.