Bill Summary – FastDemocracy

HOUSE BILL NO. 6253
     December 05, 2024, Introduced by Reps. Phil Green, Pohutsky and Rogers and referred to the
       Committee on Insurance and Financial Services.
          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), 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 motor
 vehicle accident. A personal injury insurance policy described in
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 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
 horse livery used only to transport passengers to or from a
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 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.
       (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.
       (4) Except as provided in subsections (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).
       (5) Subject to subsections (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 while an
 operator or passenger of a motorcycle shall claim personal
 protection insurance benefits from insurers in the following order
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 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.
         (6) If an applicable insurance policy in an order of priority
 under subsection (5) 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), 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.
         (7) If personal protection insurance benefits are payable
 under subsection (5) 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.
         (8) Subject to subsections (6) and (7), if 2 or more insurers
 are in the same order of priority to provide personal protection
 insurance benefits under subsection (5), an insurer that pays
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 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.
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Statutes affected: 
House Introduced Bill: 500.3114