HOUSE BILL No. 4932

 

July 2, 2003, Introduced by Reps. Howell, LaSata, Julian, Lipsey and Adamini and referred to the Committee on Insurance.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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:                      

                                                                                

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

                                                                                

2   liability policy insuring against loss resulting from liability             

                                                                                

3   imposed by law for property damage, bodily injury, or death                 

                                                                                

4   suffered by any person arising out of the ownership, maintenance,           

                                                                                

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

                                                                                

6   delivery in this state with respect to any motor vehicle                    

                                                                                

7   registered or principally garaged in this state unless the                  

                                                                                

8   liability coverage is subject to a limit, exclusive of interest             

                                                                                

9   and costs, of not less than  $20,000.00  $75,000.00 because of              

                                                                                

10  bodily injury to or death of 1 person in any 1 accident, and                

                                                                                


                                                                                

1   subject to that limit for 1 person, to a limit of not less than             

                                                                                

2   $40,000.00  $150,000.00 because of bodily injury to or death of            

                                                                                

3   2 or more persons in any 1 accident, and to a limit of not less             

                                                                                

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

                                                                                

5   of others in any accident.                                                  

                                                                                

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

                                                                                

7   motor vehicle liability coverage may be excluded when a vehicle             

                                                                                

8   is operated by a named person.   Such  This exclusion  shall  is            

                                                                                

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

                                                                                

10  policy or the declaration page or certificate of the policy and             

                                                                                

11  on the certificate of insurance:                                            

                                                                                

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

                                                                                

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

                                                                                

14  vehicle and others legally responsible for the acts of the named            

                                                                                

15  excluded person remain fully personally liable.                             

                                                                                

16      (3) If an insurer deletes coverages from an automobile                      

                                                                                

17  insurance policy pursuant to section 3101, the insurer shall send           

                                                                                

18  documentary evidence of the deletion to the insured.                        

                                                                                

19      Enacting section 1.  This amendatory act takes effect                       

                                                                                

20  July 1, 2003.