1. Do the mandated premium reductions apply to commercial auto policies?
No, PIP insurance reductions do not apply to commercial auto policies. Commercial auto policies must comply with the changes to the no-fault law.
2. Is there a mandated limit on the attendant care rider that insurers will have to offer under MCL 500.3107(c)(8)?
No. The statute does not require a mandated amount of coverage on the attendant care rider. Insurers may offer different levels of coverage.
3. When does the required change in Bodily Injury insurance limits become effective?
The new bodily injury limits do not automatically apply on July 2, 2020. They become effective for policies that are issued or renewed after July 1, 2020.
4. If the insured has elected reduced PIP coverage and the insured loses their qualifying health coverage during the term of the policy, the insured must contact the insurer within 30 days to purchase PIP coverage. If the insured secures PIP coverage within the 30 days, but there is a gap between the effective date of health insurance benefits and new PIP benefits, who is responsible for the PIP losses?
Insureds who lose qualified health coverage have a 30-day period to notify their insurer and secure PIP coverage. If an accident occurs during this 30-day period before the driver has secured PIP coverage, the driver would be eligible for benefits under the Michigan Assigned Claims Plan. However, if the accident occurs outside the 30-day period and the driver has not yet secured PIP coverage, the driver is not entitled to claim PIP benefits from any policy or Michigan Assigned Claims Plan.
5. Is PIP now required for motorcycles?
No. Motorcycle riders are not entitled to purchase PIP benefits for their motorcycle policy, but they may purchase first-party medical benefits in increments of $5,000 – – up to the limit of coverage offered by the insurer. A motorcycle operator must carry at least $20,000 of medical benefits if they ride without a helmet.
6. Is a premium reduced when someone elects to not have PIP coverage?
A policy that does not include PIP coverage under the opt-out in MCL 500.3107d, will not receive PIP medical coverage and the PIP medical premium must be reduced by 100%. Coverages that are separate from PIP medical coverage such as work loss, replacement services, and funeral and burial expenses as described in MCL 500.3107 are still included in the policy.
7. How did the (Mini-Tort) coverage that insurers offer change under the law?
The new statute increased the maximum amount of damages available for a mini-tort claim to $3,000.00 for accidents occurring after July 1, 2020.
To comply with this change, limited property damage liability coverage must pay up to $3,000.00 on a mini-tort claim for any accident occurring after July 1, 2020.
8. Do entities or persons that provide ancillary services to injured persons such as case management, family members, transportation, or guardianship/conservatorship need to be accredited under MCL 500.3157 as a care provider?
No. These entities or persons do not provide post-acute brain and spinal rehabilitation care under MCL 500.3157(15)(g) and therefore do not need to be accredited as we read the statute.
9. Does the fee schedule apply to existing claims?
Yes. The statutorily required fee schedule will take effect July 2, 2021. It will apply to new and existing claims for treatment rendered after July 1, 2021.
10. What is considered appropriate documentation to confirm Medicaid or Medicare enrollment?
Documentation may be in the form of a current Medicaid or Medicare card.
If you have questions regarding Michigan’s New Auto Insurance Law, contact our Ann Arbor Personal Injury Law Firm, Logeman, Iafrate & Logeman, P.C. for a Free Consultation. We have over 45 years’ experience in Personal Injury Law and have helped countless car accident victims throughout Michigan recover the losses and benefits they need and deserve to rebuild their lives and take care of their families.