Michigan House Bill HB6253

Michigan 2023-2024 Regular Session

• Introduced: 12/5/24
• Refer: 12/5/24

Caption

Insurance: no-fault; priorities for payment of benefits; correct cross-references in section. Amends sec. 3114 of 1956 PA 218 (MCL 500.3114).

Impact

The proposed changes in HB6253 would have a significant impact on how insurance benefits are managed in cases of motor vehicle accidents. By establishing clear guidelines for the priority of insurance claims, the bill could reduce the administrative burden on both the injured parties and insurance companies. It is designed to simplify the process of obtaining benefits after an accident, thus benefiting claimants by providing them more direct access to necessary financial support following injuries. Additionally, it could prevent delays often associated with determining liability among multiple insurers.

Summary

House Bill 6253 seeks to amend the 1956 Michigan No-Fault Insurance Act by specifically addressing the priorities for the payment of personal protection insurance (PIP) benefits related to motor vehicle accidents. It outlines the order in which an injured party may claim benefits from various insurance policies, clarifying how benefits should be distributed among multiple insurers. This amendment aims to ensure that individuals receive the coverage they are entitled to while also establishing clear rules for insurers, potentially streamlining claims processing and reducing disputes over benefit payments.

Contention

Noteworthy points of contention surrounding HB6253 include concerns from insurers about the impact on their obligations and financial responsibilities. Insurance companies might worry that the bill could lead to increased claim exposures, especially in cases involving multiple policies. On the other hand, advocates for injured parties argue that the bill is essential for ensuring that victims of accidents receive timely and adequate support. There is also a broader debate regarding how well the bill maintains a balance between the interests of insurance providers and the people they insure, particularly about equitable treatment in claims processing.