Michigan House Bill HB4914

Michigan 2023-2024 Regular Session

• Introduced: 7/18/23
• Refer: 7/18/23

Caption

Insurance: no-fault; assigned claims plan; require unlimited-level benefit reimbursement for bicyclists. Amends sec. 3172 of 1956 PA 218 (MCL 500.3172).

Impact

The proposed amendments are expected to streamline the process for claimants, particularly bicyclists, by allowing them to seek unlimited benefits under certain conditions when involved in accidents. This could potentially increase the financial coverage available for special cases while ensuring that individuals still receive necessary support when standard claims processes fail due to disputes or unavailability of insurance. Consequently, this change may lead to increased accountability among insurers, as they will now have clearer obligations to provide coverage.

Summary

House Bill 4914, which amends the insurance code of 1956, focuses on the personal protection insurance benefits for individuals involved in motor vehicle accidents. It specifically aims to enhance provisions for claims that individuals can make through the assigned claims plan when standard personal protection insurance is inadequate, unavailable, or its application is disputed. The bill highlights scenarios under which individuals can claim these benefits, particularly emphasizing cases where there are disputes between insurers or situations involving financial insolvencies.

Contention

One of the key points of contention surrounding HB 4914 may arise from the modification of existing insurance structures, with some parties expressing concern over how the changes would impact insurance premiums and the overall insurance market. Insurers may argue that increasing the obligation to cover more expansive claims could lead to higher costs and affect availability of certain plans. Furthermore, legislators will need to balance the need for sufficient protections for injured parties against potential challenges posed by insurance providers in implementing these modifications.