Vote Smart's Synopsis:

Vote to pass a bill that authorizes Michigan residents age 65 or older the option to choose a capped auto-insurance policy.

Highlights:

• Authorizes insurance companies to offer individuals ages 65 and older 2 options for auto insurance coverage (Sec. 3109B):

• Up to $50,000 for medical care related to a car accident; or

• The already available unlimited benefits offered through the Michigan Catastrophic Claims Association (MCCA) for critical injuries in a car crash.

• Requires the individual to complete a form that certifies their age and specifies which of the 2 options they want to select (Sec. 3109B).

• Specifies that if they don't complete the form or make a selection, they will be considered to have selected the $50,000 maximum limit coverage option (Sec. 3109B).

• Specifies that the $50,000 limit only applies to benefits payable because of an accidental bodily injury to the insured and his or her spouse (Sec. 3109B).

• Specifies that personal protection insurance benefits are not payable for (Sec. 3107):

• Charges for a hospital room in excess of a reasonable and customary charge unless the injured person requires special or intensive care; and

• Funeral and burial expenses in excess of the amount set forth in the policy, which must not be less than $1,750 or more than $5,000.

• Specifies that the premium charged to a member, the total car years of insurance, and the applicable average premium per car would have to be adjusted to provide for policies to which the maximum $50,000 limit is applied (Sec. 3109B).

• Specifies that the Michigan Catastrophic Claims Association (MCCA) does not have any liability for a loss to which the maximum $50,000 limit is applied (Sec. 3109B).

Full Bill Text