Vote Smart's Synopsis:

Vote to pass a bill that amends automobile insurance laws.

Highlights:

• Establishes the Michigan Claims Legacy Association to replace the Michigan Catastrophic Claims Association and to become responsible for its liabilities incurred before June 30, 2016 (Sec. 3104). 

• Repeals the Michigan Catastrophic Claims Association and replaces it with the Michigan Claims Legacy Association (Sec. 3104).

• Specifies that the Michigan Claims Legacy Association is responsible for the liability incurred by the Michigan Catastrophic Claims Association before July 1, 2016 (Sec. 3104). 

• Establishes an incorporated association to assume liability for policies issued beginning July 1, 2016 (Sec. 3104).

• Requires an insurer to cover 100 percent of injury expenses for personal protection insurance coverages up to $530,000 for a policy issued from July 1, 2013 to June 30, 2015, and up to $545,000 for a policy issued from July 1, 2015 until the incorporated association is established (Sec. 3104).

• Requires the incorporated association to cover any amount in excess of the amounts listed above (Sec. 3104).

• Requires a registrant of a motor vehicle to pay an “annual catastrophic claims assessment” of an amount equal to the total expected losses and expenses divided by the total written car years of insurance from the previous period (Sec. 3104).

• Establishes the Michigan Automobile Insurance Fraud Authority to provide financial support to state or local law enforcement agencies for programs to reduce the incidence of insurance fraud (Sec. 6302).

Full Bill Text