Bill Summary – FastDemocracy

SENATE BILL NO. 905
     June 06, 2024, Introduced by Senator HERTEL and referred to the Committee on Finance,
        Insurance, and Consumer Protection.
          A bill to amend 1956 PA 218, entitled
    "The insurance code of 1956,"
    by amending section 3114 (MCL 500.3114), as amended by 2019 PA 21.
                    THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
       Sec. 3114. (1) Except as provided in subsections (2) , (3),
 and (5), (4), a personal protection insurance policy described in
 section 3101(1) 3101 applies to accidental bodily injury to the
 person named in the policy, the person's spouse, and a relative of
 either domiciled in the same household, if the injury arises from a
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 motor vehicle accident. A personal injury insurance policy
 described in section 3103(2) applies to accidental bodily injury to
 the person named in the policy, the person's spouse, and a relative
 of either domiciled in the same household, if the injury arises
 from a motorcycle accident. If personal protection insurance
 benefits or personal injury benefits described in section 3103(2)
 are payable to or for the benefit of an injured person under his or
 her own policy and would also be payable under the policy of his or
 her spouse, relative, or relative's spouse, the injured person's
 insurer shall pay all of the benefits up to the coverage level
 applicable under section 3107c to the injured person's policy, and
 is not entitled to recoupment from the other insurer.
       (2) A person who suffers accidental bodily injury while an
 operator or a passenger of a motor vehicle operated in the business
 of transporting passengers shall receive the personal protection
 insurance benefits to which the person is entitled from the insurer
 of the motor vehicle. This subsection does not apply to a passenger
 in any of the following, unless the passenger is not entitled to
 personal protection insurance benefits under any other policy:
       (a) A school bus, as defined by the department of education,
 providing transportation not prohibited by law.
       (b) A bus operated by a common carrier of passengers certified
 by the department of transportation.
       (c) A bus operating under a government sponsored
 transportation program.
       (d) A bus operated by or providing service to a nonprofit
 organization.
       (e) A taxicab insured as prescribed in section 3101 or 3102.
       (f) A bus operated by a canoe or other watercraft, bicycle, or
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 horse livery used only to transport passengers to or from a
 destination point.
       (g) A transportation network company vehicle.
       (h) A motor vehicle insured under a policy for which the
 person named in the policy has elected to not maintain coverage for
 personal protection insurance benefits under section 3107d or as to
 which an exclusion under section 3109a(2) applies.
       (2) (3) An employee, his or her spouse, or a relative of
 either domiciled in the same household, who suffers accidental
 bodily injury while an occupant of a motor vehicle owned or
 registered by the employer , shall receive personal protection
 insurance benefits to which the employee is entitled from the
 insurer of the furnished vehicle.
       (3) (4) Except as provided in subsections subsection (2), and
 (3), a person who suffers accidental bodily injury arising from a
 motor vehicle accident while an occupant of a motor vehicle who is
 not covered under a personal protection insurance policy as
 provided in subsection (1) shall claim personal protection
 insurance benefits under the assigned claims plan under sections
 3171 to 3175. This subsection does not apply to a person insured
 under a policy for which the person named in the policy has elected
 to not maintain coverage for personal protection insurance benefits
 under section 3107d or as to which an exclusion under section
 3109(2) 3109a(2) applies, or who is not entitled to be paid
 personal protection benefits under section 3107d(6)(c) or
 3109a(2)(d)(ii).
       (4) (5) Subject to subsections (5) and (6), and (7), a person
 who suffers accidental bodily injury arising from a motor vehicle
 accident that shows evidence of the involvement of a motor vehicle
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 while an operator or passenger of a motorcycle shall claim personal
 protection insurance benefits from insurers in the following order
 of priority:
       (a) The insurer of the owner or registrant of the motor
 vehicle involved in the accident.
       (b) The insurer of the operator of the motor vehicle involved
 in the accident.
       (c) The motor vehicle insurer of the operator of the
 motorcycle involved in the accident.
       (d) The motor vehicle insurer of the owner or registrant of
 the motorcycle involved in the accident.
       (5) (6) If an applicable insurance policy in an order of
 priority under subsection (5) (4) is a policy for which the person
 named in the policy has elected to not maintain coverage for
 personal protection insurance benefits under section 3107d, or as
 to which an exclusion under section 3109(2) 3109a(2) applies, the
 injured person shall claim benefits only under other policies,
 subject to subsection (7), (6), in the same order of priority for
 which no such election has been made. If there are no other
 policies for which no such election has been made, the injured
 person shall claim benefits under the next order of priority or, if
 there is not a next order of priority, under the assigned claims
 plan under sections 3171 to 3175.
       (6) (7) If personal protection insurance benefits are payable
 under subsection (5) (4) under 2 or more insurance policies in the
 same order of priority, the benefits are only payable up to an
 aggregate coverage limit that equals the highest available coverage
 limit under any 1 of the policies.
       (7) (8) Subject to subsections (5) and (6), and (7), if 2 or
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 more insurers are in the same order of priority to provide personal
 protection insurance benefits under subsection (5), (4), an insurer
 that pays benefits due is entitled to partial recoupment from the
 other insurers in the same order of priority, and a reasonable
 amount of partial recoupment of the expense of processing the
 claim, in order to accomplish equitable distribution of the loss
 among all of the insurers.
        (9) As used in this section:
        (a) "Personal vehicle", "transportation network company
 digital network", and "transportation network company prearranged
 ride" mean those terms as defined in section 2 of the limousine,
 taxicab, and transportation network company act, 2016 PA 345, MCL
 257.2102.
        (b) "Transportation network company vehicle" means a personal
 vehicle while the driver is logged on to the transportation network
 company digital network or while the driver is engaged in a
 transportation network company prearranged ride.
        Enacting section 1. This amendatory act does not take effect
 unless Senate Bill No. 904 of the 102nd Legislature is enacted into
 law.
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Statutes affected: 
Senate Introduced Bill: 500.3114