This bill amends the Michigan Insurance Code of 1956, specifically section 3009, to update the liability coverage requirements for automobile and motor vehicle insurance policies. The amendments introduce new limits for liability coverage based on the date the policy is issued. For policies delivered before July 1, 2027, the minimum coverage for bodily injury or death of one person in an accident is set at $250,000, while for two or more persons, it is $500,000. For policies issued after June 30, 2027, these limits decrease to $25,000 and $50,000, respectively. Additionally, the bill allows applicants to choose lower limits than those required, but not below $50,000 for one person and $100,000 for two or more persons, provided they complete a specific form acknowledging the risks associated with lower coverage.

The bill also includes provisions for exclusions of coverage when a vehicle is operated by a named excluded person, requiring a warning notice on the policy. Insurers are mandated to provide applicants with information on available liability options and their prices, as well as to document any deletions of coverage. Furthermore, if a policy is issued or renewed without an effective choice made by the insured regarding coverage limits, the higher limits will automatically apply. The enactment of this bill is contingent upon the passage of three related bills in the 103rd Legislature.

Statutes affected:
House Introduced Bill: 500.3009