A bill will be introduced into the Michigan Legislature in the very near future reforming Michigan’s No-Fault PIP and Tort laws.  Frankenmuth Insurance supports this action.  Further, we wish to inform you of some of the proposed bill’s “highlights” including:

• Agents cannot be sued for failing to provide a higher limit

• Coverage above the $500,000 retention level (without inflation escalators) will be provided by the MCCA (with insurers continued

           retention of 10 percent of any losses greater than $500,000)

• PIP Limits – choose from $250,000, $500,000, $1 million or $5 million

• Companies must offer above limits, and only those limits

• Claimants receiving benefits through the Assigned Claims Facility would have a PIP limit of $250,000

• Provides for fee schedule based on current workers’ compensation fee schedule

• Threshold requirement for “serious impairment of body function” clarifying language added

• MCCA current inventory will be walled off at a date certain with costs to be shared by all insurers

• 30-day work loss figure updated to $4,929, which reflects the required increase over time per the consumer price index

• Cost parameters for hospital and attendant care (basic and skilled)

• Stacking not permitted

There are additional aspects to this proposed legislation, and we encourage you to become familiar with the entire bill once it is introduced. 
At that time, we will be back in contact with you regarding the number assigned to the proposed legislation and recommendations for contacting 
your Representative.