Michigan Insurance Laws And Regulations

Top FAQs for Michigan Insurance Laws And Regulations

Insurance Market Regulation

Category: Insurance Market DIFS Market Regulation Proactively Monitors The Business Practices Of Insurance Institutions (including Companies Premium Finance

How our department monitors insurance market practices

The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.

DIFS Market Regulation proactively monitors the business practices of insurance institutions (including companies, agencies, premium finance companies, third-party administrators, managing general agencies, and surplus lines carriers) operating in Michigan to ensure fair treatment of Michigan consumers. The responsibilities of ensuring compliance with the Insurance Code, MCL 500.100 et seq., and regulations include a-sessing and addressing the market practices of insurers, such as sales, advertising, underwriting, and claims handling. Upon the findings and recommendations of a market conduct examination, the Director may require the company to take corrective action or may impose other sanctions.

The Company Market Regulation Section utilizes and shares information with the National A-sociation of Insurance Commissioners’ databases. Market Regulation also participates with other states in NAIC collaborative efforts and multi-state cooperative examinations.

The Agency Audit Section monitors the business practices of insurance agencies, licensed producers (agents), and premium finance companies. The goal of the section is to ensure sound business practices, offer guidance, and protect Michigan consumers. The section is also responsible for collecting and reviewing surplus lines tax filings and payments submitted by surplus lines producers, risk retention groups, purchasing groups, and policyholders.

Preview

Insurance

The Insurance Licensing Section, Office of Insurance Evaluation, and Office of Insurance Rates & Forms are responsible for licensing, examining, investigating, and supervising over 120,000 individual licensees and 15,000 entities. This area encompasses several acts: the Health Benefit Agent Act, Insurance Code, and the Third Party Administrator Act.

Preview

Auto Insurance

DIFS Auto Insurance

As a result of Michigan's new auto insurance law, Michigan drivers have all-new choices and lower cost insurance options. With these new options and savings available, there has never been a better time for Michiganders to shop for auto insurance.

Governor Whitmer signed historic bipartisan auto no-fault legislation to lower costs for Michigan drivers, maintain the highest coverage options in the country, and strengthen consumer protections. The legislation creates a better no-fault system for drivers. These changes will apply to policies issued or renewed after July 1, 2020.

(LANSING, MICH) The holiday season should be a time to focus on friends and family, not to worry about your insurance coverage or falling victim to fraud. As you celebrate the s...

Preview

Michigan Supreme Court takes up car insurance case

2:08 - 2 years ago

Michigan Supreme Court will take on the car insurance case as drivers may have to repay a portion of the $400 refund they ...

Statutes, Rules and Regulations

Preview

Michigan Insurance Data Security Law

Category: The Michigan Insurance Data Security Law Added Chapter 5A To The Insurance Code Of 1956 Effective January 20 The Law Established New Data Security

The Michigan Insurance Data Security Law added Chapter 5A, MCL 500.550 to 500.565, to the Insurance Code of 1956. Effective January 20, 2021, the law established new data security requirements for licensed insurers and producers. Please see our

Preview

Insurance Laws & Rules In Michigan - QA

Department of Insurance & Financial Services is a principal department in the Michigan executive branch with responsibility for insurance

A producer is any person who sells, solicits, or negotiates insurance contracts for compensation on behalf of an insurer. This includes submitting applications to the insurer, collecting premiums, and delivering policies to policyowners. Each agency that transacts insurance must be licensed by the insurance department. An insurance producer CANNOT act as an agent of an insurer until the insurance producer becomes appointed by the insurer.

An insurance counselor is any person who, for a fee, offers to examine any policy for the purpose of giving advice or recommendations with respect to the benefits provided by the contract. An counselor must be licensed in the State of Michigan.

A business entity that acts as an insurance producer in any manner (sells, solicits, negotiates, advertises, collects commission) must be licensed in Michigan. The types of business entities that can be licensed in Michigan are corporations, limited liability companies, limited liability partnerships, partnerships, or sole proprietorships.

Producer licenses are renewable biennially (every two years) with fee, renewal application, and proof of completing continuing education (CE). Exceptions are made for producers who are in active military service or other extenuating circumstances by requesting a waiver.

A producer who holds a resident license in a different state may apply for a nonresident license in Michigan, as long as both states have a reciprocal agreement. To apply, nonresidents must submit an application form, proof of resident license in good standing, and fees.

Preview

Michigan Car Insurance Laws 2022 - Policygenius

Learn about Michigan car insurance laws and requirements so you're informed about how much coverage you need to legally drive.

Michigan has some of the most expensive car insurance rates in the country, and the state’s extensive car insurance requirements are part of what makes rates so high.In 2020, Michigan lawmakers came together to make major changes to state car insurance laws, with the goal of reducing insurance costs for drivers in the state.

Whether you’re a Michigan driver buying car insurance for the first time or you’re checking to make sure you have the right amount of car insurance, here’s what you need to know about auto insurance laws and requirements in the Great Lakes State.

Michigan has some of the most comprehensive insurance requirements in the country. While some no-fault states have low liability requirements because drivers are expected to file a claim with their own insurance after an accident, Michigan has some of the highest liability requirements in the country along with the highest required levels of PIP coverage.

Liability coverage is the portion of your car insurance policy that pays for damage you cause to other drivers in an at-fault accident. It’s divided into bodily injury liability, which covers the other driver’s injuries, and property damage liability, which covers damage you do to their car or other property.

Drivers in Michigan are required to have a minimum of $50,000 per person and $100,000 per accident in bodily injury liability insurance and $10,000 in property damage liability coverage You may see that written out as 50/100/10. Michigan drivers are also required to have a minimum of $1 million in PPI coverage, which covers the cost of damage to physical property resulting from a car accident.

Preview

Michigan Car Insurance Laws: Everything You Need To Know

If you live in Michigan, understanding the state laws about auto insurance can help you make sure you have the right coverage to drive legally without risking your personal a-sets if an accident occurs.

Under new insurance laws that took effect in July 2020, Michigan auto insurance companies can no longer use certain types of personal information when providing policy quotes. The prohibited data includes marital status and gender, along with residential status (homeowner or renter), zip code, education level, and occupation. However, they can still look at designated areas called territories to determine each driver's geographic risk.

As mentioned above, the new law in Michigan prohibits insurance companies from using some personal data in auto insurance pricing. As a result, insurers can not use your credit score to determine the cost of your policy; however, they can still review your payment history to a-sess your risk level.

The statewide average auto insurance premium is $3096 per year, which is twice the national average of $1548. What's more, Detroit is the most expensive auto insurance city both in Michigan and in the entire United States, according to data from the Michigan Department of Insurance and Financial Services. Motor City drivers regularly spend 20 percent of their annual income on auto insurance policies that can easily exceed $6000 per year. Even New York and Los Angeles residents have more affordable auto insurance than drivers who live in Detroit.

Bankrate.com reports that all Michigan drivers must have minimum no-fault auto insurance, which comprises residual liability, property damage, and personal injury protection (PIP) policies. Drivers in Michigan can purchase other types of coverage but are not under an obligation to do so.

Preview

Michigan Legislature - Page Not Found

Category: THE INSURANCE CODE OF 1956 Act 218 Of 1956 AN ACT To Revise And Classify The Laws Relating To The Insurance And Surety

The Michigan Legislature Website is a free service of the Legislative Internet Technology Team in cooperation with the Michigan Legislative Council, the Michigan House of Representatives, and the Michigan Senate.

Bills Appropriation Bills (Passed) Calendars Committees Committee Bill Records Committee Meetings Concurrent Resolutions Initiatives/Alternative Measures Joint Resolutions Journals Legislators Public Act (Signed Bills) Resolutions Rules Session Schedules Search - Basic Search - Advanced

Page Not Found The page or document you have requested could not be found on the Michigan Legislature website. If you were looking for a section of the Michigan Compiled Laws, it might have been repealed. If you got here from your own Bookmark or Favorite, please delete and recreate it. If you followed a link to us from another website, please notify them that their link is invalid. Visit the home page or use the site index at left.

Bills Appropriation Bills Calendars Committees Committee Bill Records Committee Meetings Concurrent Resolutions Initiatives/Alternative Measures Joint Resolutions Journals Legislators Public Act (Signed Bills) Resolutions Rules Session Schedules Search - Basic Search - Advanced

The Michigan Legislature Website is a free service of the Legislative Service Bureau in cooperation with the Michigan Legislative Council, the Michigan House of Representatives, the Michigan Senate, and the Library of Michigan. This site is intended to provide accurate and timely legislative information to the citizens of the State of Michigan and other interested parties. Additional historical documents can be found at http://michigan.gov/libraryofmichigan. The information obtained from this site is not intended to replace official versions of that information and is subject to revision. The Legislature presents this information, without warranties, express or implied, regarding the accuracy of the information, timeliness, or completeness. If you believe the information is inaccurate, out-of-date, or incomplete or if you have problems accessing or reading the information, please send your concerns to the appropriate agency using the online Comment Form in the bar above this text.

Preview

Michigan’s Auto Insurance Law Has Changed

No-fault automobile insurance is required by Michigan law. Every car owner must buy certain basic coverages in order to register a motor vehicle in Michigan. It is against the law to drive, or …

Preview

Michigan Legislature - Act 218 of 1956

THE INSURANCE CODE OF 1956Act 218 of 1956AN ACT to revise, consolidate, and classify the laws relating to the insurance and surety business; to regulate the incorporation or formation of domestic insurance and surety companies and a-sociations and the admission of foreign and alien companies and a-sociations; to provide their rights, powers, and immunities and to prescribe the conditions on which companies and a-sociations organized, existing, or authorized under this act may exercise their powers; to provide the rights, powers, and immunities and to prescribe the conditions on which other persons, firms, corporations, a-sociations, risk retention groups, and purchasing groups engaged in an insurance or surety business may exercise their powers; to provide for the imposition of a privilege fee on domestic insurance companies and a-sociations and the state accident fund; to provide for the imposition of a tax on the business of foreign and alien companies and a-sociations; to provide for the imposition of a tax on risk retention groups and purchasing groups; to provide for the imposition of a tax on the business of surplus line agents; to provide for the imposition of regulatory fees on certain insurers; to provide for a-sessment fees on certain health maintenance organizations; to modify tort liability arising out of certain accidents; to provide for limited actions with respect to that modified tort liability and to prescribe certain procedures for maintaining those actions; to require security for losses arising out of certain accidents; to provide for the continued availability and affordability of automobile insurance and homeowners insurance in this state and to facilitate the purchase of that insurance by all residents of this state at fair and reasonable rates; to provide for certain reporting with respect to insurance and with respect to certain claims against uninsured or self-insured persons; to prescribe duties for certain state departments and officers with respect to that reporting; to provide for certain a-sessments; to establish and continue certain state insurance funds; to modify and clarify the status, rights, powers, duties, and operations of the nonprofit malpractice insurance fund; to provide for the departmental supervision and regulation of the insurance and surety business within this state; to provide for regulation over worker's compensation self-insurers; to provide for the conservation, rehabilitation, or liquidation of unsound or insolvent insurers; to provide for the protection of policyholders, claimants, and creditors of unsound or insolvent insurers; to provide for a-sociations of insurers to protect policyholders and claimants in the event of insurer insolvencies; to prescribe educational requirements for insurance agents and solicitors; to provide for the regulation of multiple employer welfare arrangements; to create an automobile theft prevention authority to reduce the number of automobile thefts in this state; to prescribe the powers and duties of the automobile theft prevention authority; to provide certain powers and duties upon certain officials, departments, and authorities of this state; to provide for an appropriation; to repeal acts and parts of acts; and to provide penalties for the violation of this act.

History: 1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 1977, Act 42, Imd. Eff. June 28, 1977 ;-- Am. 1979, Act 145, Imd. Eff. Nov. 13, 1979 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980 ;-- Am. 1982, Act 194, Imd. Eff. June 28, 1982 ;-- Am. 1986, Act 10, Imd. Eff. Feb. 28, 1986 ;-- Am. 1986, Act 121, Imd. Eff. May 28, 1986 ;-- Am. 1986, Act 173, Imd. Eff. July 7, 1986 ;-- Am. 1989, Act 214, Eff. Jan. 1, 1990 ;-- Am. 1991, Act 24, Imd. Eff. May 20, 1991 ;-- Am. 1994, Act 228, Imd. Eff. June 30, 1994 ;-- Am. 1998, Act 457, Imd. Eff. Jan. 4, 1999 ;-- Am. 2002, Act 304, Imd. Eff. May 10, 2002 Compiler's Notes: Act 143 of 1993, which amended this act, was submitted to the people by referendum petition (as Proposal C) and rejected by a majority of the votes cast at the November 8, 1994, general election.For transfer of the Department of Insurance and Office of the Commissioner on Insurance from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.For transfer of authority, powers, duties, functions, and responsibilities of the insurance bureau and the commissioner of insurance to the commissioner of the office of financial and insurance services and the office of financial and insurance services, see E.R.O. No. 2000-2, compiled MCL 445.2003 of the Michigan compiled laws.Popular Name: Act 218

The People of the State of Michigan enact: DocumentTypeDescription 218-1956-1DivisionCHAPTER 1 SCOPE OF CODE (500.100...500.150) 218-1956-2DivisionCHAPTER 2 THE INSURANCE COMMISSIONER (500.200...500.271) 218-1956-4DivisionCHAPTER 4 AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS (500.402...500.480) 218-1956-5DivisionCHAPTER 5 PRIVACY OF FINANCIAL INFORMATION (500.501...500.547) 218-1956-5ADivisionCHAPTER 5A DATA SECURITY (500.550...500.565) 218-1956-6DivisionCHAPTER 6 KINDS OF INSURANCE; REINSURANCE; LIMIT OF RISK (500.600...500.644) 218-1956-7DivisionCHAPTER 7 RESERVE STANDARDS FOR DISABILITY INSURANCE (500.701...500.737) 218-1956-8DivisionCHAPTER 8 A-SETS AND LIABILITIES (500.808...500.842) 218-1956-9DivisionCHAPTER 9 INVESTMENTS (500.900...500.960) 218-1956-10DivisionCHAPTER 10 ANNUAL AUDITED FINANCIAL REPORTS (500.1001...500.1033) 218-1956-11DivisionCHAPTER 11 REINSURANCE (500.1101...500.1127) 218-1956-11ADivisionCHAPTER 11A REINSURANCE INTERMEDIARIES (500.1151...500.1171) 218-1956-12DivisionCHAPTER 12 AGENTS, SOLICITORS, ADJUSTERS, AND COUNSELORS (500.1200...500.1247) 218-1956-12ADivisionCHAPTER 12A (500.1261...500.1272) 218-1956-12BDivisionCHAPTER 12B TRAVEL INSURANCE (500.1281...500.1291) 218-1956-13DivisionCHAPTER 13 HOLDING COMPANIES (500.1301...500.1379) 218-1956-14DivisionCHAPTER 14 MANAGING GENERAL AGENTS (500.1400...500.1450) 218-1956-14ADivisionCHAPTER 14a PRODUCER CONTROLLED INSURERS (500.1451...500.1474) 218-1956-15DivisionCHAPTER 15 INSURANCE PREMIUM FINANCE COMPANIES (500.1501...500.1514) 218-1956-16.DivisionCHAPTER 16. Creditor-Placed Insurance (500.1601...500.1631) 218-1956-17DivisionCHAPTER 17 RISK MANAGEMENT AND OWN RISK AND SOLVENCY A-SESSMENT (500.1701...500.1715) 218-1956-17ADivisionCHAPTER 17A CORPORATE GOVERNANCE ANNUAL DISCLOSURE (500.1751...500.1767) 218-1956-18DivisionCHAPTER 18 (500.1801...500.1864) 218-1956-19DivisionCHAPTER 19 (500.1901...500.1955) 218-1956-20DivisionCHAPTER 20 UNFAIR AND PROHIBITED TRADE PRACTICES AND FRAUDS (500.2001...500.2093) 218-1956-21DivisionCHAPTER 21 (500.2101...500.2138) 218-1956-21ADivisionCHAPTER 21a CREDIT INFORMATION AND CREDIT SCORES (500.2151...500.2162) 218-1956-22DivisionCHAPTER 22 THE INSURANCE CONTRACT (500.2204...500.2266) 218-1956-22ADivisionCHAPTER 22A (500.2270...500.2277) 218-1956-23DivisionCHAPTER 23 WORKER'S COMPENSATION INSURANCE RATES (500.2301...500.2352) 218-1956-24DivisionCHAPTER 24 CASUALTY INSURANCE RATES (500.2400...500.2484) 218-1956-25DivisionCHAPTER 25 BROWN-McNEELY INSURANCE FUND (500.2500...500.2517) 218-1956-26DivisionCHAPTER 26 FIRE AND INLAND MARINE RATES (500.2600...500.2674) 218-1956-27DivisionCHAPTER 27 LEGAL EXPENSE INSURANCE (500.2700...500.2706) 218-1956-28DivisionCHAPTER 28 FIRE INSURANCE CONTRACTS (500.2804...500.2866) 218-1956-29DivisionCHAPTER 29 BASIC PROPERTY INSURANCE (500.2901...500.2954) 218-1956-30DivisionCHAPTER 30 CASUALTY INSURANCE CONTRACTS (500.3004...500.3037) 218-1956-30ADivisionCHAPTER 30A (500.3051...500.3062) 218-1956-31DivisionCHAPTER 31 MOTOR VEHICLE PERSONAL AND PROPERTY PROTECTION (500.3101...500.3179) 218-1956-31ADivisionCHAPTER 31A MANAGED CARE (500.3181...500.3189) 218-1956-32DivisionCHAPTER 32 CANCELLATION OF AUTOMOBILE LIABILITY POLICIES (500.3201...500.3262) 218-1956-33DivisionCHAPTER 33 AUTOMOBILE INSURANCE PLACEMENT FACILITY (500.3301...500.3390) 218-1956-34DivisionCHAPTER 34 DISABILITY INSURANCE POLICIES (500.3400...500.3480) 218-1956-35DivisionCHAPTER 35 HEALTH MAINTENANCE ORGANIZATIONS (500.3501...500.3580) 218-1956-36DivisionCHAPTER 36 GROUP AND BLANKET DISABILITY INSURANCE (500.3600...500.3650) 218-1956-37DivisionCHAPTER 37 SMALL EMPLOYER GROUP HEALTH COVERAGE (500.3701...500.3728) 218-1956-38DivisionCHAPTER 38 MEDICARE SUPPLEMENT POLICIES AND CERTIFICATES (500.3801...500.3861) 218-1956-39DivisionCHAPTER 39 LONG-TERM CARE INSURANCE (500.3901...500.3955) 218-1956-39ADivisionCHAPTER 39A LONG-TERM CARE PARTNERSHIP PROGRAM INSURANCE (500.3957...500.3965) 218-1956-40DivisionCHAPTER 40 LIFE INSURANCE POLICIES AND ANNUITY CONTRACT (OTHER THAN INDUSTRIAL OR GROUP) (500.4000...500.4073) 218-1956-41DivisionCHAPTER 41 MODIFIED GUARANTEED ANNUITIES (500.4101...500.4127) 218-1956-41ADivisionCHAPTER 41A ANNUITY RECOMMENDATION TO CONSUMERS (500.4151...500.4166) 218-1956-42DivisionCHAPTER 42 INDUSTRIAL LIFE INSURANCE (500.4200...500.4244) 218-1956-44DivisionCHAPTER 44 GROUP LIFE INSURANCE (500.4400...500.4454) 218-1956-45DivisionCHAPTER 45 INSURANCE FRAUD (500.4501...500.4511) 218-1956-46DivisionCHAPTER 46 CAPTIVE INSURANCE COMPANIES (500.4601...500.4673) 218-1956-47DivisionCHAPTER 47 SPECIAL PURPOSE FINANCIAL CAPTIVES (500.4701...500.4747) 218-1956-48DivisionCHAPTER 48 PROTECTED CELL INSURANCE COMPANIES (500.4801...500.4813) 218-1956-50DivisionCHAPTER 50 ORGANIZATION OF DOMESTIC STOCK AND MUTUAL INSURERS (500.5000...500.5040) 218-1956-51DivisionCHAPTER 51 ORGANIZATION OF AN ACQUIRING INSURER FOR TRANSACTION OF CERTAIN TYPES OF INSURANCE (500.5100...500.5114) 218-1956-52DivisionCHAPTER 52 CORPORATE POWERS, PROCEDURES OF STOCK AND MUTUAL INSURERS (500.5200...500.5290) 218-1956-54DivisionCHAPTER 54 MUTUAL LIFE AND DISABILITY INSURERS (DOMESTIC) (500.5400...500.5430) 218-1956-55DivisionCHAPTER 55 DOMESTIC STOCK INSURER DIVISION (500.5500...500.5517) 218-1956-58DivisionCHAPTER 58 GENERAL MUTUAL INSURERS (DOMESTIC) (500.5800...500.5840) 218-1956-59DivisionCHAPTER 59 CONVERSION OF DOMESTIC MUTUAL INSURER TO DOMESTIC STOCK INSURER (500.5901...500.5927) 218-1956-60DivisionCHAPTER 60 Reorganization of Mutual Insurers (500.6001...500.6031) 218-1956-61DivisionCHAPTER 61 AUTOMOBILE THEFT PREVENTION AUTHORITY (500.6101... 500.6125) 218-1956-62DivisionCHAPTER 62 MUTUAL EMPLOYERS' LIABILITY INSURERS (DOMESTIC) (500.6200...500.6236) 218-1956-63DivisionCHAPTER 63 ANTI-FRAUD UNIT (500.6301...500.6304) 218-1956-64DivisionCHAPTER 64 COOPERATIVE PLAN INSURERS (DOMESTIC) (500.6400...500.6460) 218-1956-65DivisionCHAPTER 65 LIMITED LIABILITY POOLS (500.6500...500.6550) 218-1956-66DivisionCHAPTER 66 RAILWAY EMPLOYEES, AND LIFE, DISABILITY INSURERS (DOMESTIC, STOCK) (500.6600...500.6616) 218-1956-68DivisionCHAPTER 68 FARMERS' AND OTHER SPECIAL MUTUAL PROPERTY INSURERS (DOMESTIC) (500.6800...500.6886) 218-1956-70DivisionCHAPTER 70 MULTIPLE EMPLOYER WELFARE ARRANGEMENTS (500.7001...500.7090) 218-1956-72DivisionCHAPTER 72 RECIPROCAL INSURANCE EXCHANGES (500.7200...500.7234) 218-1956-73DivisionCHAPTER 73 TITLE INSURERS (500.7300...500.7318) 218-1956-76DivisionCHAPTER 76 CONSOLIDATION OR MERGER OF DOMESTIC INSURERS (500.7604...500.7606) 218-1956-77DivisionCHAPTER 77 (500.7701...500.7780) 218-1956-78DivisionCHAPTER 78 LIQUIDATIONS AND RECEIVERSHIPS (500.7800...500.7868) 218-1956-79DivisionCHAPTER 79 PROPERTY AND CASUALTY GUARANTY A-SOCIATION (500.7901...500.7949) 218-1956-80DivisionCHAPTER 80 FRATERNAL BENEFIT SOCIETIES (500.8000...500.8095) 218-1956-81DivisionCHAPTER 81 SUPERVISION, REHABILITATION, AND LIQUIDATION (500.8101...500.8160) 218-1956-81ADivisionCHAPTER 81a FRATERNAL BENEFIT SOCIETIES (500.8161...500.8199a) 218-1956-82DivisionCHAPTER 82 TRANSFORMATION OF FRATERNAL BENEFIT SOCIETIES (500.8204...500.8254) 218-1956-83DivisionCHAPTER 83 REPEALS, SAVING CLAUSE, EFFECTIVE DATE (500.8300...500.8302)

Preview

MICHIGAN’S NEW AUTO INSURANCE LAW

Category: Policy Or Health Insurance Covering Auto Accidents Up To $500 000 In Coverage Up To $250 000 In Coverage Drivers Must Choose A Level Of PIP Medical Coverage

Michigan auto insurance policy or health insurance covering auto accidents. Up to $500,000 in coverage Up to $250,000 in coverage Drivers must choose a level of PIP medical coverage …

Preview

Michigan Car Insurance Laws: Everything You Need to Know | GetJerry.com

Category: Drivers Must Carry The State’s Mandated Minimum 50/100/10 Liability Coverage And No-fault Insurance Encompassing Personal Injury Protection (PIP)

Under Michigan car insurance laws, it’s illegal to drive without both liability insurance and no-fault insurance. Read this guide to the state if Michigan's car insurance laws to learn what's required.

With Jerry, all it takes is 45 seconds to sign up and then you’ll have the pick of the car insurance litter! Jerry is a car insurance broker and comparison shopping app that generates competitive quotes from more than 40 top insurers.

In Michigan, all drivers are required by law to carry liability insurance. Since Michigan is a no-fault state, drivers involved in a collision go to their own insurers, no matter who was at fault in the accident.

All drivers must also carry proof of insurance at all times when driving. Electronic proof of insurance is allowed—which Jerry provides (how handy!). If you’re caught driving without insurance, your license can be suspended.

In Michigan, drivers must carry the state’s mandated minimum 50/100/10 liability coverage and no-fault insurance, encompassing personal injury protection (PIP), property protection insurance (PPI), and residual liability insurance. All will be explained in further detail below.

While drivers who buy the minimum amount of insurance do pay lower premiums, they are at greater risk if they’re in an accident. Medical bills and car repair bills can rise quickly, and you’ll be responsible for any bills exceeding your own coverage out of pocket.

Preview

Michigan Health Care Laws - FindLaw

Category: Health Insurance

The Affordable Care Act (ACA) changed the way insurance is accessed in all states, putting in place rules and limitations for both health insurance providers and their customers. Health insurance was more of a state concern prior to the ACA, but states, including Michigan, still have the authority to pass laws and regulations affecting health care. For instance, Michigan law prohibits euthanasia, but does allow the designation of a patient advocate who -- in accordance with a living will -- may request that the patient be removed from artificial life support. Other state health care laws address matters such as access to reproductive health services and power of attorney.

Basic information about Michigan laws governing living wills and durable power of attorney, including the legal requirements for a living will and the validity of such a will in other states.

Information about Michigan euthanasia law, which limits mercy killing but allows for the designation of a patient advocate who may under certain circumstances request the patient be removed from life support.

Preview

CHAPTER 550. GENERAL INSURANCE LAWS EMERGENCY

CHAPTER 550. GENERAL INSURANCE LAWS EMERGENCY INSURANCE LEGISLATION Act 66 of 1933 AN ACT to regulate insurance corporations, fraternal benefit and other societies and …

Preview

Michigan Car Insurance Laws & Requirements - Michigan Auto Law

Category: Insurance Laws

Michigan Car Insurance Laws & Requirements - The 4 types of mandatory No-Fault coverage you must have by law and how they apply when borrowing or leasing.

The Michigan car insurance laws and requirements state that under certain circumstances, you must purchase a No-Fault insurance policy for your vehicle that provides the following four types of coverage: Personal Injury Protection, Property Protection Insurance, Residual Bodily Injury Liability and Property Damage.

Personal Injury Protection (PIP): This coverage provides what are commonly known as “No-Fault PIP Benefits.” If you’re seriously injured in an auto accident, No-Fault PIP benefits provide reimbursement for medical expenses, a percentage of your lost wages, attendant care (in-home nursing services) and replacement services (help with household duties).

Property Protection Insurance (PPI): This coverage covers damage you cause to “tangible property” such parked cars or other property (i.e. buildings, fences, trees, lawns, etc.) within the state of Michigan. Every Michigan auto policy has a mandatory $1 Million of PPI coverage.

Residual Bodily Injury Liability (BI): This coverage protects you in the event you cause an auto accident that resulted in serious injuries to someone else. The law requires minimum bodily injury liability coverage limits of $250,000 per person and $500,000 per accident, but drivers may choose to purchase lower limits of $50,000 and $100,000. However, our attorneys recommend that you never carry less than $500,000 per person and $1,000,000 per accident to fully protect yourself. The difference is usually only a few dollars more.

Property Damage (PD): This coverage protects you in the event you cause damage to another person’s vehicle outside the state of Michigan. The law requires a minimum of $10,000 of PD coverage. However, our attorneys recommend that you carry a minimum of $100,000. For example, if you travel to Ohio, which is a tort state (Michigan is a No-Fault state) and you cause a crash, you would be responsible for all of the other driver’s car damage.

Preview

Michigan Supreme Court takes major car insurance case - CBS Detroit

Category: Insurance Law

The Michigan Supreme Court agreed Thursday to decide whether major changes in car insurance law apply to people who were catastrophically injured before summer 2019.

FILE - Health aide Angela Martin helps former Detroit Red Wings star Vladimir Konstantinov into his wheelchair on Tuesday, May 17, 2022, in West Bloomfield, Mich. Konstantinov suffered a severe brain stem injury from an accident in a limousine with an impaired driver after a Stanley Cup celebration nearly 25 years ago. He was in danger of losing his 24/7 care he has had for two-plus decades, but major changes in Michigan car insurance law do not apply to people who were severely injured before summer 2019, the state appeals court said Thursday, Aug. 25, 2022. It is a victory for long-term victims of motor vehicle crashes and their care providers. Carlos Osorio / AP

For decades, people injured in crashes were entitled to payment for "all reasonable charges" related to care and rehabilitation. But the new law set a fee schedule and a cap on reimbursements not covered by Medicare.

FILE - Former Detroit Red Wings star Vladimir Konstantinov plays Uno with health care provider Angela Martin on Tuesday, May 17, 2022, in West Bloomfield, Mich. Konstantinov suffered a severe brain stem injury from an accident in a limousine with an impaired driver after a Stanley Cup celebration nearly 25 years ago. He was in danger of losing his 24/7 care he has had for two-plus decades, but major changes in Michigan car insurance law do not apply to people who were severely injured before summer 2019, the state appeals court said Thursday, Aug. 25, 2022. It is a victory for long-term victims of motor vehicle crashes and their care providers. Carlos Osorio / AP

Preview

Michigan Supreme Court takes up car insurance case

Category: Insurance Law

Auto insurance recipients may have to repay a portion of the $400 refund drivers received from their insurance companies earlier this year. The wrangling over Michigan's new auto no-fault insurance law is going to the Michigan Supreme Court, which has decided to take up the case.

Preview

Michigan Health Insurance Laws, Plans and Regulations | EINSURANCE

Michigan health insurance offers protection for you and your family members. Check Michigan health insurance plans, laws, regulations and requirements.

As a Michigan resident you can choose from health insurance plans offered to individuals and groups by private insurance companies. Michigan plans to open its own healthcare exchange. Until then you may also purchase individual and family coverage from participating private insurers through HealthCare.gov, the federal exchange. If you are self-employed with no employees, you can also use the federal exchange to purchase coverage. You may also be entitled to certain state and federal programs such as Medicaid and COBRA.

The Patient Protection and Affordable Care Act (also known as ObamaCare and the Affordable Care Act and referred to in this guide as ACA) became law in 2010. Provisions of the law have continued to be phased in following passage. As of January 1, 2014, most U.S. citizens and legal residents are required by law to have qualifying health care coverage or pay an annual tax penalty for every month they go without insurance. This is called the “individual mandate.” There is a grace period through March 31, 2014. Beginning in 2014, the penalty for not having qualifying coverage is $95 per adult and $47.50 per child or 1% of your taxable income, whichever is higher (up to $285 per family). The penalty increases annually through 2017 and beyond.

If you own a small business in Michigan (50 or fewer full-time-equivalent employees – FTEs), you can purchase qualifying coverage for your employees through SHOP, the Small Business Health Option Program or through a private broker or insurance agent. However, you may qualify for tax credits worth up to 50% of your premium costs if you use SHOP. Beginning in 2016, SHOP will be open to employers with up to 100 FTEs. Under the Employer Shared Responsibility provision of ACA, beginning in 2015, all employers with 50 or more FTEs must offer employees at least one plan that is ACA-compliant or face fines of $2,000 per employee.

To help you more easily compare costs and benefits, ACA designates that all qualifying plans be one of four metals: Bronze, Silver, Gold and Platinum. Each is based on the average amount of healthcare costs the plan will cover shown as a percentage of what is covered by your insurance company and what is paid for by you. All insurers participating in the federal or a state healthcare exchange must offer , at minimum, Silver and Gold plans. All metal plans have a shared maximum out-of-pocket amount that you can be charged in any calendar year.

Under ACA, no one can be denied coverage or charged significantly higher premiums because of past health history (pre-existing conditions) or gender. There can be no look-back or waiting periods imposed. Policies are effective on issue. All coverage is renewable, if you choose to renew it. Plans can only be canceled for non-payment of premiums or fraud. The guaranteed issue provision applies to all non-grandfathered plans.

Preview

Michigan Supreme Court will hear auto insurance appeal | Crain's Detroit Business

LANSING — The Michigan Supreme Court will hear insurers' appeal of a major ruling that invalidated parts of a 2019 auto insurance overhaul. But the state's high court declined to freeze the appeals court decision that declared unconstitutional payment cuts for certain care of motorists…

The high court's order Thursday leaves in place the state Court of Appeals' August ruling during the appeal, good news for people who sued along with brain-injury rehabilitation clinics and home care agencies.

The bipartisan law is credited with reducing high insurance premiums but has come under criticism for slashing reimbursements for post-acute services. The Michigan Catastrophic Claims A-sociation, which issued $400-per-vehicle refunds this year, last week cited the appeals court decision while raising fees by between $36 and $48 per car starting next summer. The nonprofit, whose board is made up of insurance industry representatives, also pointed to lower-than-expected investment returns.

"Today's ruling providers another breath of hope for the thousands of car crash survivors and care providers whose mission it is to bring the services these people deserve throughout the state," Tom Judd, executive director of the Michigan Brain Injury Provider Council, said in a statement. "While this case is not yet settled, we hope the insurance industry will follow the law and allow care to be restored for people in need."

The Insurance Alliance of Michigan, an industry group, blamed the MCCA increase — the first since the law was enacted more than three years ago — on higher-than-expected claims costs due to the appeals court ruling.

Preview