MI Automobile Insurance Policies
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Required Limits of Liability [RL 257.520]
- Must explicitly describe or appropriately reference all motor vehicles covered by the policy.
- Must identify the named insured.
- Each auto minimum requirements-
- $20,000 for bodily injury to or death of one person in any one accident,
- $40,000 for bodily injury to or death of two or more persons in any one accident (subject to the limit of $20,000 for any one person), and
- $10,000 for damage to the property of others in any one accident.
Required Proof of Insurance [RL 257.518]
- The certificate must
- certify that there is a motor vehicle liability policy in effect for the benefit of the person required to furnish proof of financial responsibility;
- provide the effective date of the motor vehicle liability policy, which is the same as the effective date of the certificate; and
- explicitly describe or appropriately reference all motor vehicles covered, unless the policy is issued to a person who is not the owner of a motor vehicle.
Michigan Automobile Insurance Placement Facility [500.3301]
- The Michigan Automobile Insurance Placement Facility is Michigan's residual market mechanism for automobile insurance. Every insurer authorized to write automobile insurance in Michigan must participate in this organization.This organization was established to
- guarantee that automobile insurance coverage will be available to any person who is unable to procure such insurance through ordinary methods, and
- preserve the benefits of price competition by encouraging maximum use of the normal private insurance system.
No Fault Automobile Coverage [500.3101]
- The owner or registrant of a motor vehicle required to be registered in Michigan must maintain security for payment of benefits under
- personal protection insurance,
- property protection insurance, and
- residual liability insurance.
Personal Protection Insurance Benefits [500.3107]
- reasonable charges for necessary products, services, and accommodations for an injured person's care, recovery, or rehabilitation excluding
- charges for a hospital room in excess of a reasonable and customary charge for semiprivate accommodations except if the injured person requires special or intensive care; and
- funeral and burial expenses greater than the policy limit, which cannot be less than $1,750 or more than $5,000.work loss consisting of loss of income from work an injured person would have performed during the first three years after the date of the accident if he or she had not been injured, but that amount
- is limited (up to $5,189 per month as of October 1, 2012),
- is revised annually, and
- is adjusted annually to reflect cost of living changes after October 1, 2013.
- up to $20 per day for replacement services, such as payment for routine household services that injured persons are no longer able to provide for themselves or their families, such as household chores or yard work.
- Both of the following apply to payable personal protection insurance benefits:
- A person who is 60 years of age or older is not eligible to receive work loss benefits in the event of an accidental bodily injury. He or she may waive coverage for work loss benefits and receive a reduced premium rate in exchange for his or her written waiver.
- An insurer is not required to provide coverage for the medical use of marihuana or for expenses related to its medical use.
Property Protection [500.3121]
Property protection insurance benefits are due without regard to fault. Under property protection insurance, an insurer is liable to pay benefits for accidental damage to tangible property arising out of the ownership, operation, maintenance, or use of a motor vehicle.
Residual Liability [500.3131]
Residual liability insurance covers bodily injury and property damage which occurs within the United States, its territories and possessions, or in Canada. This insurance provides coverage equivalent to that required as evidence of automobile liability insurance under the financial responsibility laws of the place in which the injury or damage occurs. In Michigan, this is $20,000/$40,000/$10,000 (20/40/10) minimum liability coverage.
Cancellation and Nonrenewal Grounds [500.3220]
- An insurer licensed to write automobile liability coverage, after a policy has been in effect 55 days or if the policy is a renewal (effective immediately), may not cancel an automobile liability insurance policy unless at least one of the following reasons exist
- The insurer determines that the risk is unacceptable during the 55 days following the date of original issue of the policy.
- The named insured or any other operator, either a resident of the same household or someone who customarily operates an automobile insured under the policy, has had his or her operator's license suspended during the policy period and the revocation or suspension has become final.
Notice [500.3204, .3224]
A cancellation is not effective unless a written cancellation notice is mailed by certified mail, return receipt requested, to the insured at the last address known to the insurer.The notice must be mailed at least 20 days prior to the effective date of cancellation. Delivery of the written notice by the insurer is the equivalent of mailing. The notice must contain the reasons for the cancellation and must state in bold type that the insured has the statutory right within seven days from the date of mailing to appeal to the Department.
Notice of Eligibility in Automobile Insurance Placement Facility[500.3301, .3303, .3365]
- An insurer that cancels an insurance policy is required to inform the insured of his or her potential eligibility for automobile insurance provided through the Michigan Automobile Insurance Placement Facility.
- A qualified applicant is a person who is an owner or registrant of an automobile registered or to be registered in Michigan or who holds a valid license to operate a motor vehicle.
Extended Non-Owned Coverage: Vehicles Furnished or Available for Regular Use—Michigan (PP 03 53 09 06)
- Extended non-owned coverage is provided for each of the following where it is shown that a premium was paid for the specific coverage
- liability coverage
- coverage for damage to the insured’s auto
- property protection coverage
- limited/broadened collision coverages
- additional property damage liability coverage
- The endorsement further defines “covered auto” as used in the above coverages.
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