This bill amends the Michigan Insurance Code of 1956 to enhance automobile insurance requirements and the operations of the Catastrophic Claims Association. Key updates include a mandate for motor vehicle owners to maintain security for personal protection insurance, property protection insurance, and residual liability insurance while driving. The bill clarifies that all automobile insurance policies must include these coverages and specifies conditions under which insurers can modify coverage. It also introduces definitions for various vehicle types, such as "commercial quadricycle" and "electric bicycle," to ensure clarity in legal applications. Additionally, the bill establishes indemnification amounts for personal protection insurance based on policy issuance dates, which will increase biennially, and outlines the responsibilities of the Catastrophic Claims Association, including claims reporting and premium calculations.

Further amendments focus on personal protection insurance benefits, allowing applicants to select their coverage levels more flexibly and requiring documentation for those opting out due to qualified health coverage. The bill also addresses the assessment of damages in motor vehicle accidents, emphasizing comparative fault and prohibiting damages for parties found more than 50% at fault or operating without required insurance. It introduces provisions for personal protection insurance benefits through an assigned claims plan when applicable insurance is unavailable, and it includes a repeal of a specific section of the insurance code effective July 1, 2028. Overall, these changes aim to improve the clarity, efficiency, and regulatory compliance of Michigan's automobile insurance framework while ensuring adequate protection for policyholders.

Statutes affected:
House Introduced Bill: 500.3101, 500.3107