The Michigan Legislature adjourned a very busy but generally successful legislative session recently.
Several bills of interest to property/casualty insurers passed during the last two weeks of the session including legislation addressing commercial lines deregulation and personal injury protection (PIP) coverage for non-residents.
“The NAII and its member companies commend the Michigan legislature and the Office of Financial and Insurance Services for passing a commercial lines deregulation bill that utilizes competition as a regulatory tool. Senate Bill 1213 virtually eliminates all rate and form filing requirements for insurers selling commercial policies. This will help to create a healthier, more efficient marketplace for consumers, companies and regulators in the state,” Laura Kotelman, council for the National Association of Independent Insurers (NAII), said.
Another industry supported bill that passed in the closing weeks of the Michigan legislative session addressed the issue of PIP coverage for non-residents. Prior to the passage of Senate Bill 1164, non-residents injured in their own out of state vehicle were entitled to unlimited benefits for their medical losses. This new law caps an insurance company’s exposure for non-residents at $500,000.
“Earlier in the legislative session, Governor Engler also signed a bill, which allows the Automobile Insurance Placement Facility to impose a premium surcharge on insured drivers who had been convicted of violating the felonious driving section of the Michigan Vehicle Code,” Kotelman remarked.