Michigan House Bill HB5307

Michigan 2023-2024 Regular Session

• Introduced: 11/9/23
• Refer: 11/9/23

Caption

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

Impact

The impact of HB 5307 on state law is significant as it establishes a more definitive hierarchy for insurance claims related to personal protection benefits. It requires insurers to provide benefits to an injured party in the order of priority specified by the bill, which encompasses different insurance scenarios including those involving motorcycles, commercial transport, and personal vehicles. This restructuring may streamline how claims are processed and resolved, potentially leading to quicker access to benefits for individuals injured in such accidents.

Summary

House Bill 5307 is aimed at amending the Michigan Insurance Code, specifically section 3114, which concerns personal protection insurance benefits for individuals involved in motor vehicle accidents. The bill clarifies the process of claiming personal protection insurance for those injured in vehicles used for transporting passengers. Under the proposed amendments, it specifies that an injured person must claim benefits from the insurer of the vehicle involved in the accident. This extends to various vehicles and circumstances, including transportation network company vehicles, thereby solidifying the claim process for passengers involved in these transportation services.

Contention

While the bill aims to clarify and potentially simplify the insurance claim process, there may be notable points of contention surrounding the implications for various stakeholders. Opponents could argue that the changes might favor large insurance companies at the expense of individual rights. Critics might worry that stringent recoupment practices among insurers could lead to disputes over liability and coverage limits, complicating claims further rather than alleviating issues. Additionally, the tie-bar clause linking HB 5307 to another bill (HB 5308) may bring about discussions on legislative dependencies that could affect its passage.