Legislation watch

Search all years.

2019 House Bill 4397: Reform no-fault vehicle insurance system (originally, to repeal no-fault)

Public Act 22 of 2019

Introduced by Rep. Jason Sheppard (R) on March 19, 2019
To repeal Michigan's no-fault auto insurance law, which would revert the state to a tort-based system for apportioning crash-related vehicle damage and personal injury costs. Michigan is the only state with a no-fault system, which in most cases automatically apportions those costs to each vehicle owner’s own insurance provider and policy, with a mandate that every vehicle owner must have insurance. The bill would also eliminate the requirement that mandated coverage must include a Personal Injury Protection provision that pays unlimited personal injury costs.   Official Text and Analysis.
Referred to the House Insurance Committee on March 19, 2019
Substitute offered by Rep. Jason Wentworth (R) on May 8, 2019
To replace the introduced bill with a proposal to reform the no fault insurance system; see House-passed description.
The substitute passed by voice vote in the House on May 8, 2019
Amendment offered by Rep. Jeff Yaroch (R) on May 8, 2019
The amendment passed by voice vote in the House on May 8, 2019
Amendment offered by Rep. Jeff Yaroch (R) on May 8, 2019
To exclude ambulance operations from the proposed price controls on medical service providers.
The amendment passed by voice vote in the House on May 8, 2019
Amendment offered by Rep. Michael Webber (R) on May 8, 2019
To replace Michigan's current "file and use" rate regime for auto insurers. The bill would instead require auto insurers to wait 90 days to start using new rate structures they have filed with the state, which they are required to do.
The amendment passed by voice vote in the House on May 8, 2019
Amendment offered by Rep. Karen Whitsett (D) on May 8, 2019
To revise details of the calculation used to determine if a lawsuit seeking benefits from an auto insurer has been filed within the required one-year period after a crash.
The amendment passed by voice vote in the House on May 8, 2019
Amendment offered by Rep. Karen Whitsett (D) on May 8, 2019
To prohibit auto insurers from setting rates on the basis of “non-driving factors” for which there is “no rational correlation between the factor and insurance losses.” The Department of Insurance and Financial Services would be required to promulgate rules banning rate-setting factors that lack a rational connection.
The amendment failed by voice vote in the House on May 8, 2019
Amendment offered by Rep. Leslie Love (D) on May 8, 2019
To require that auto insurers reduce charges for the Personal Injury Protection (PIP) component of a customer’s policy by 10 percent to 80 percent depending on the level of PIP coverage selected. This would also apply to customer surcharges for Michigan Catastrophic Claims Association, which pays the cost of unlimited PIP claims above specified amounts.
The amendment passed by voice vote in the House on May 8, 2019
Substitute offered by Rep. Kyra Bolden (D) on May 9, 2019
To adopt a version of the bill that would order insurers to immediately cut rates by 25 percent, and prohibit insurers from basing the price of a policy on any factor except the insured's driving safety record.
The substitute failed by voice vote in the House on May 9, 2019
Amendment offered by Rep. Karen Whitsett (D) on May 9, 2019
To prohibit auto insurers from setting rates on the basis of “non-driving factors” for which there is “no rational correlation between the factor and insurance losses,” as determined by rules the Department of Insurance and Financial Services would be required to promulgate.
The amendment passed by voice vote in the House on May 9, 2019
Passed 61 to 49 in the House on May 9, 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 $50,000, $250,000 and $500,000. Individuals with other health insurance (including Medicare and Medicaid) 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 10 percent to 80 percent depending on the coverage selected. Those who have other health insurance coverage who choose no PIP coverage would not be required to pay for it. Customer surcharges for Michigan Catastrophic Claims Association coverage for unlimited PIP claims above around $500,000 would likely fall even more for customers who don't choose unlimited coverage.
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 an automobile insurance fraud task force within the Michigan State Police tasked with pursuing and prosecuting fraud cases.
Insurers could not set rates on the basis of “non-driving factors” for which there is “no rational correlation between the factor and insurance losses.” The Department of Insurance and Financial Services would be required to promulgate rules banning rate-setting factors that lack a rational connection.
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.
Received in the Senate on May 9, 2019
Motion by Sen. Peter MacGregor (R) on May 9, 2019
That the bill be referred to the Committee of the Whole.
The motion passed 22 to 16 in the Senate on May 9, 2019.
    See Who Voted "Yes" and Who Voted "No".
Passed 33 to 4 in the Senate on June 4, 2019.
    See Who Voted "Yes" and Who Voted "No".
To use this bill as a "cleanup" bill for the auto insurance reform bill signed into law in May (Senate Bill 1). The bill revises timing issues related to the implementation of the new law’s changes to required minimum insurance coverage, and the customer discounts that those changes are intended to allow. It corrects provisions in Senate Bill 1 that would have required insurers to give customer discounts before the cost saving reforms authorized by the bill go into effect.
Received in the House on June 4, 2019
Amendment offered by Rep. Isaac Robinson (D) on June 4, 2019
To prohibit auto insurers from setting rates on the basis of sex, marital status, home ownership, educational level attained, occupation, zip code, credit score, consumer or credit information or data, insurance score, or credit report.
The amendment failed by voice vote in the House on June 4, 2019
Amendment offered by Rep. Cynthia Johnson (D) on June 4, 2019
To prohibit auto insurers from setting rates on the basis of sex, marital status, home ownership, educational level attained, occupation, zip code or credit score.
The amendment failed by voice vote in the House on June 4, 2019
Amendment offered by Rep. Laurie Pohutsky (D) on June 4, 2019
To revise details of the price controls the auto insurance reform bill would impose on medical care delivered to crash victims by hospitals and medical service providers..
The amendment failed by voice vote in the House on June 4, 2019
Amendment offered by Rep. Donna Lasinski (D) on June 4, 2019
To revised details of an "assigned claims" auto insurance provision that reimburses crash-related expenses incurred by pedestrians and other uninsured persons.
The amendment failed by voice vote in the House on June 4, 2019
Signed by Gov. Gretchen Whitmer on June 7, 2019

Comments