HOUSE BILL No. 5218


     October 16, 2001, Introduced by Reps. Patterson, Raczkowski, Bishop, LaSata, Shulman, Koetje, Howell, Stewart, Kuipers, Neumann, Frank,
Wojno, Whitmer, Basham, Minore, Bernero, Adamini, Jacobs, Bogardus, Lockwood, Woodward and Bovin and referred to the Committee on Insurance
and Financial Services.


        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 3009 (MCL 500.3009), as amended by 1988 PA

   43.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 3009.  (1) An automobile liability or motor vehicle

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      liability policy insuring against loss resulting from liability

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      imposed by law for property damage, bodily injury, or death suf-

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      fered by any person arising out of the ownership, maintenance, or

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      use of a motor vehicle shall not be delivered or issued for

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      delivery in this state with respect to any motor vehicle regis-

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      tered or principally garaged in this state unless the liability

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      coverage is subject to a limit, exclusive of interest and costs,

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      of not less than  $20,000.00  $75,000.00 because of bodily injury

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      to or death of 1 person in any 1 accident, and subject to that


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      limit for 1 person, to a limit of not less than  $40,000.00

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      $150,000.00 because of bodily injury to or death of 2 or more

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      persons in any 1 accident, and to a limit of not less than

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      $10,000.00 because of injury to or destruction of property of

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      others in any accident.

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           (2) If authorized by the insured, automobile liability or

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      motor vehicle liability coverage may be excluded when a vehicle

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      is operated by a named person.   Such  THIS exclusion  shall 
   IS

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      not  be  valid unless the following notice is on the face of the

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      policy or the declaration page or certificate of the policy and

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      on the certificate of insurance:

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           Warning--when a named excluded person operates a vehicle all

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      liability coverage is void--no one is insured.  Owners of the

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      vehicle and others legally responsible for the acts of the named

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      excluded person remain fully personally liable.

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           (3) If an insurer deletes coverages from an automobile

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      insurance policy pursuant to section 3101, the insurer shall send

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      documentary evidence of the deletion to the insured.

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           Enacting section 1.  This amendatory act takes effect

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      July 1, 2002.

















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