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2019 Senate Bill 1: Reform auto insurance
Introduced by Sen. Aric Nesbitt (R) on January 15, 2019
To establish as the intent of the legislature that the legislature enact reforms to Michigan’s no-fault auto insurance system and that rates come down. The bill lists the components of this issue that appear ripe for reform but does not prescribe any specific reforms.   Official Text and Analysis.
Referred to the Senate Insurance and Banking Committee on January 15, 2019
Reported in the Senate on May 7, 2019
With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Substitute offered in the Senate on May 7, 2019
To replace the introduced "shell" bill with a real bill; see Senate-passed description.
The substitute passed by voice vote in the Senate on May 7, 2019
Amendment offered in the Senate on May 7, 2019
To restrict insurers from setting rates on the basis of two specific “non-driving factors,” gender and the zip code where the care is garaged.
The amendment passed by voice vote in the Senate on May 7, 2019
Amendment offered by Sen. Erika Geiss (D) on May 7, 2019
To mandate that insurers cut rates on their homeowners and auto insurance policies by 50 percent if the bill becomes law, eliminate the state's “file and use” insurance rate regulatory system for insurance, and impose various restrictions on insurance company management and rate-setting practices. Under current law, insurers are required to file for approval of any rate changes but don’t have to wait for approval to start using the rates immediately. Under the amendment, insurers would require state approval in advance for rate changes.
The amendment failed 16 to 22 in the Senate on May 7, 2019.
    See Who Voted "Yes" and Who Voted "No".
Amendment offered by Sen. Marshall Bullock (D) on May 7, 2019
To tie-bar the bill to Senate Bill 88, meaning this bill cannot become law unless that one does also. SB 88 would prohibit auto insurers from basing the price of a policy on any factor except the insured's driving safety record, the number of miles driven annually and years of driving experience.
The amendment failed 16 to 22 in the Senate on May 7, 2019.
    See Who Voted "Yes" and Who Voted "No".
Amendment offered by Rep. Cynthia Johnson (D) on May 24, 2019
To clarify the definition of "credit score," the use of which would be restricted in determining the price of an auto insurance policy.
The amendment failed by voice vote in the House on May 24, 2019
Passed 24 to 14 in the Senate on May 7, 2019.
    See Who Voted "Yes" and Who Voted "No".
To no longer mandate that auto insurance policies include unlimited personal injury protection (PIP) coverage. A customer could theoretically keep the unlimited PIP (if it remains available), or choose policies with $250,000 PIP limits. Individuals with other health insurance (including Medicare and Medicaid) could choose not to purchase any PIP coverage at all.
The Michigan Catastrophic Claims Association (MCCA) that covers the cost of unlimited PIP claims above specified amounts would be phased out by limiting its liabilities to claims covered by pre-existing policies sold before the bill goes into effect. This would reportedly reduce MCCA surcharges on individual insurance bills by $180, based on a $220 rate that goes into effect in July 2019.
Medical service providers and hospitals could not charge more for medical care given to crash victims than the amounts prescribed by the state’s workers compensation insurance law. Limits would also be applied to long term care costs including weekly “attendant care” hours provided by relatives.
The bill would also make trial lawyers liable for insurance company costs incurred defending against lawsuits based on claims for excessive or medically unnecessary crash victim treatments, or if the attorney improperly solicited a case (“ambulance chasing”). It would create a State Police automobile insurance fraud task force tasked with pursuing and prosecuting fraud cases.
A Democratic amendment was adopted that would restrict insurers from setting rates on the basis of two specific “non-driving factors,” gender and the zip code where the care is garaged.
Received in the House on May 7, 2019
Referred to the House Select Committee on Reducing Car Insurance Rates on May 7, 2019
Reported in the House on May 16, 2019
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered by Rep. Roger Hauck (R) on May 24, 2019
To adopt a version of the bill that reflects a compromise between Democratic Gov. Gretchen Whitmer and the Republican leadership of the state House and Senate.
The substitute passed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Isaac Robinson (D) on May 24, 2019
To limit insurers using "territory," insurance score, credit information and more as an insurance rating factor, so that not more than 10 percent of a customer's bill could be based on them.
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Rachel Hood (D) on May 24, 2019
To extend certain price reductions mandated by the bill on personal injury protection coverage (PIP) to all coverage.
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Isaac Robinson (D) on May 24, 2019
To remove a provision of current law that requires regulators to assess the amount of market competition between auto insurers in determining whether rates are "excessive, inadequate, or unfairly discriminatory".
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. LaTanya Garrett (D) on May 24, 2019
To establish that the level of personal injury protection coverage an individual chooses to buy applies to any minor children of the policy holder.
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Tenisha Yancey (D) on May 24, 2019
To extend unlimited personal injury protection (PIP) to claims filed under an "assigned claims" provision that covers individuals without insurance who are injured in crashes caused by uninsured drivers.
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Isaac Robinson (D) on May 24, 2019
To establish that "notwithstanding anything in this act to the contrary, territory, insurance score, credit information, credit report, credit or consumer data or information cannot be used to establish a personal protection insurance premium".
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Sherry Gay-Dagnogo (D) on May 24, 2019
To require the percentage discounts of personal injury protection (PIP) coverage the bill mandates to be the same for every person, rather than an "average" of the aggregate discounts given to all people.
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Sherry Gay-Dagnogo (D) on May 24, 2019
To require insurers to incorporate savings realized from selling policies with lower personal injury protection (PIP) coverages to policies sold after this law goes into effect. Also, to establish that a physician who examines a patient for purposes of supporting a reimbursement claim against an auto insurer must be a “licensed, board certified, or board eligible physician qualified to practice in the area of medicine appropriate to treat the person's condition”.
The amendment passed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Lynn Afendoulis (R) on May 24, 2019
To exempt “freestanding rehabilitation facilities” from the price controls the bill would impose on medical service providers for treatment to crash victims.
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Sherry Gay-Dagnogo (D) on May 24, 2019
To raise the medical care price caps the bill imposes on hospitals if a facility serves a higher proportion of Medicaid beneficiaries.
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Sheldon Neeley (D) on May 24, 2019
To increase the level of personal injury protection (PIP) coverage a Medicaid beneficiary must purchase in an auto insurance policy from at least $50,000 to at least $100,000.
The amendment failed by voice vote in the House on May 24, 2019
Amendment offered by Rep. Jason Wentworth (R) on May 24, 2019
To correct a statutory reference in the text.
The amendment passed by voice vote in the House on May 24, 2019
Passed 94 to 15 in the House on May 24, 2019.
    See Who Voted "Yes" and Who Voted "No".
To no longer mandate that auto insurance policies include unlimited personal injury protection (PIP) coverage. Customers could still choose unlimited PIP coverage, or choose policies with PIP limits of $250,000, $500,000, and for individuals covered by Medicaid, $50,000. Seniors on Medicare and individuals covered by other health insurance with less than a $6,000 deductible could choose not to purchase any PIP coverage at all.
The bill would mandate that insurers reduce charges for the PIP component of a customer’s policy by an average of at least 45% for policies with a $50,000 PIP coverage limit, 35% for policies with a $250,000 PIP limit, and 20% percent for policies with a $500,000 PIP limit. Those who choose unlimited PIP coverage would get at least a 10% discount over current rates.
Medical service providers and hospitals could not charge more for medical care given to crash victims than twice the amount prescribed for federal Medicare reimbursements (subject to some adjustments). Limits would also be applied to reimbursements for long term care costs, including a cap of 56 hours a week on “attendant care” hours provided by friends and relatives, and payments to others capped at the amounts prescribed by the state’s workers compensation insurance law.
The bill would also increase from $500 to $3,000 the limit on damages for which a person may sue under under a “mini-tort” exception to the no fault insurance law’s general prohibition on vehicle crash lawsuits.
Trial lawyers would be prohibited from suing insurance companies for reimbursement claims that have not been authorized or are not late, or if the attorney improperly solicited a case (“ambulance chasing”).
Insurers could not set rates on the basis of home ownership, educational level attained, occupation or credit score (but could use “credit information”). Zip codes would also be barred as a rate-setting factor, but insurers may still group ratings by 'territory.'
Under current law, Michigan insurance companies must file rate structure changes with the state but can start using them right away ("file and use"). The bill would require auto insurers to wait 90 days before using new rates they have filed, unless regulators approve them sooner.
Received in the Senate on May 24, 2019
Amendment offered by Sen. Jeff Irwin (D) on May 24, 2019
The amendment failed 16 to 22 in the Senate on May 24, 2019.
    See Who Voted "Yes" and Who Voted "No".

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