No-Fault Reform – Michigan

In recognition of October as National Cyber Awareness Month, Walton Insurance Group wants to warn you of the dangers of cyber attacks. Please heed this as a strong warning, because it is likely that your electronic devices, both at work and at home, are targets and are ALWAYS at risk.

National Cyber Security Awareness Month (NCSAM) is designed to engage and educate public and private sector partners through events and initiatives to raise awareness about the importance of cybersecurity, provide them with tools and resources needed to stay safe online, and increase the resiliency of the Nation in the event of a cyber incident. More information at the US Department of Homeland Security

Governor Gretchen Whitmer, Speaker Lee Chatfield, and Senate Majority Leader Mike Shirkey announced they have reached a compromise on reforming Michigan’s auto no-fault law. After days of closed-door negotiations, the leaders rolled out Michigan’s first major changes to no-fault in decades.

Here are the highlights:

    • Allows an insured person to select an Unlimited, $500,000 or $250,000 Personal Injury Protection (PIP) option.
    • Allows seniors on Medicare to opt out of purchasing PIP coverage entirely, and allows Medicaid recipients to purchase a PIP policy of $50,000.
    • Permits enhanced coordination with health insurance. For insureds who select the $250,000 PIP option, the bill will allow for 100% PIP reduction with health coverage that covers injuries related to an auto accident.
    • Includes a mandatory rate rollback on the PIP line of the auto policy. The rollbacks are: 10% for Unlimited coverage, 20% for $500,000, 35% for $250,000, 45% for $50,000, and 100% PIP reduction for Medicare or Enhanced opt-outs.
    • Increases current minimum coverage of residual liability insurance from $20,000/$40,000 to $50,000/$100,000.
    • Increases the mini-tort provision from $1,000 to $3,000.
    • Prohibits the use of most non-driving rating factors. Insurers will still be allowed to use credit information and territory as a rating factor.
    • Requires a statutory form be created by DIFS that requires the insured’s signature acknowledging coverage level. This is a consumer protection issue since the current no-fault system has been in place for over 40 years and has been advocated for by MAIA.
    • Puts in statute the current auto insurance fraud task force within DIFS to investigate insurers, health providers, drivers or anyone who is defrauding the system for personal benefit.

© 2019, Michigan Association of Insurance Agents, All rights reserved.

In addition to insuring your home, Walton Insurance Group is committed to helping you and your loved ones stay safe when disaster strikes. If you would like more information on how to protect yourself from a cyber attack, please speak with an agent to make sure you have proper insurance coverage in place.

Call us direct: 517.787.2600 or contact us