HB 5887

HOUSE BILL NO. 5887
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 3109a (MCL 500.3109a), as amended
by 2019 PA 22, and by adding section 3015.
the people of the state of michigan enact:
Sec. 3015. (1)
Subject to subsection (2), while an insured remains insured with the same
insurer or an affiliate of the insurer, the insured's selected coverage level
remains in effect for a policy issued or renewed after June 30, 2027 that
provides any of the following:
(a) Residual liability insurance required under sections 3009 and 3101.
(b) Personal protection and property protection insurance required under
chapter 31.
(c) Uninsured and underinsured motorist coverage.
(d) Comprehensive coverage.
(e) Collision coverage, including coverage required to be offered under
section 3037.
(2) An effective selection of a coverage level for a type of automobile
insurance listed in subsection (1) remains in effect until a policy is issued
in accordance with a different effective selection by the insured. An insurer
shall state, in a conspicuous manner, that a coverage level selection will
remain in effect while the insured remains insured with the same insurer or an
affiliate of the insurer unless the insured selects a different coverage
option.
(3) As used in this section, "affiliate of" means that term as
defined in section 2102.
Sec. 3109a. (1) An insurer that provides
personal protection insurance benefits under this chapter may offer deductibles
and exclusions reasonably related to other health and accident coverage on the
insured. Any deductibles and exclusions offered under this section must be
offered at a reduced premium that reflects reasonably anticipated reductions in
losses, expenses, or both, are subject to prior approval by the director, and
must apply only to benefits payable to the person named in the policy, the spouse
of the insured, and any relative of either domiciled in the same household.
(2) For an
insurance policy issued or renewed after July 1,
2020, the before July 1, 2027, an insurer
shall offer to an applicant or named insured that selects a personal protection
benefit limit under section 3107c(1)(b) an exclusion related to qualified
health coverage. All of the following apply to that exclusion:
(a) If the named
insured has qualified health coverage as defined in section 3107d(7)(b)(i) that will cover injuries that occur as
the result of a motor vehicle accident and if the named insured's spouse and
any relatives of either the named insured or the spouse domiciled in the same
household have qualified health coverage that will cover injuries that occur as
the result of a motor vehicle accident, the premium for the personal protection
insurance benefits payable under section 3107(1)(a) under the policy must be
reduced by 100%.
(b) If a member,
but not all members, of the household covered by the insurance policy has
qualified health coverage that will cover injuries that occur as the result of
a motor vehicle accident, the insurer shall offer a reduced premium that
reflects reasonably anticipated reductions in losses, expenses, or both. The
reduction must be in addition to the rate rollback required by section 2111f
and the share of the premium reduction for the policy attributable to any
person with qualified health coverage must be 100%.
(c) Subject to
subdivision (d), a person subject to an exclusion under this subsection is not
eligible for personal protection benefits under the insurance policy.
(d) If a person
subject to an exclusion under this subsection is no longer covered by the
qualified health coverage, the named insured shall notify the insurer that the
named insured or resident relative is no longer eligible for an exclusion. All
of the following apply under this subdivision:
(i) The named insured shall, within not later than 30
days after the effective date of the termination of the qualified health
coverage, obtain insurance that provides the security required under section 3101(1) 3101 that
includes coverage that was excluded under this subsection.
(ii) During the period described in
subparagraph (i), if any person excluded suffers accidental bodily injury arising from
a motor vehicle accident, the person is entitled to claim benefits under the
assigned claims plan.
(e) If the named
insured does not obtain insurance that provides the security required under
section 3101(1) 3101
that includes the coverage excluded under this subsection during the
period described in subdivision (d)(i) and the named insured or any person excluded under the policy suffers
accidental bodily injury arising from a motor vehicle accident, unless the
injured person is entitled to coverage under some other policy, the injured
person is not entitled to be paid personal protection insurance benefits under
section 3107(1)(a) for the injury that occurred during the period in which
coverage under this section was excluded.
(3) An automobile
insurer shall not refuse to prospectively insure, limit coverage available to,
charge a reinstatement fee for, or increase the premiums for automobile
insurance for an eligible person , as that term is defined in section 2103, solely
because the person previously failed to obtain insurance that provides the
security required under section 3101(1) 3101 in the time period provided under subsection
(2)(d)(i).
(4) The amount of a
premium reduction under subsection (1) must appear in a conspicuous manner in
the declarations for the policy, and be expressed as a dollar amount or a
percentage.
(5) Subsections (2) and (3) do not apply for an insurance policy issued
or renewed after June 30, 2027.
(6) (5) As
used in this section: ,
(a) "Affiliate of" means that term as defined in section 2102.
(b) "Eligible person" means that term as defined in section
2103(1).
(c) "qualified "Qualified health coverage" means that term as
defined in section 3107d.
Enacting section 1.
This amendatory act does not take effect unless all of the following bills of
the 103rd Legislature are enacted into law:
(a) House Bill No. 5886 (request no. H01583'25).
(b) House Bill No. 5889 (request no. H01583'25 g).
(c) House Bill No. 5888 (request no. H05612'25).