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Wednesday, 29 May 2019 21:12

Car Insurance Laws Are Changing in Michigan

Written by Steven Gursten, JD Supra

Index

Depending on the type of facility involved—whether a substantial portion of its patients are indigent, whether it is a freestanding rehabilitation facility or a Level I or II Trauma Center—reimbursement will range from 190% to 250% of the amount payable under Medicare.

 

Passing along savings from No-Fault medical-provider fee: The savings that auto insurance companies realize as a result of the No-Fault medical provider fee schedule must be passed along to drivers in form of lower premium rates. Auto insurers will be required to document these savings in their rate filings to the Director of the Department of Insurance and Financial Services (DIFS).

 

Auto insurance premium rates and pricing factors that cannot be considered: Auto insurers cannot base premium rates on such non-driving factors as: sex, marital status, home ownership, education level attained, occupation and the postal zone in which the insured resides and credit score.

 

Mini tort: The Michigan mini tort law’s maximum recovery limit will increase from $1,000 to $3,000.

 

Tolling of the one-year-back rule: Under our existing No-Fault law, when a car accident victim has been denied or cut-off from No-Fault benefits and sues to recover for unpaid and overdue benefits, he or she “may not recover benefits for any portion of the loss incurred more than one year before the date on which the action was commenced.” (MCL 500.3145(1)) The new Michigan No-Fault law provides that this “limitation . . . is tolled from the date the person claiming the benefits makes a specific claim for the benefits until the date the insurer formally denies the claim.” However, the bill cautions that tolling “does not apply if the person claiming the benefits fails to pursue the claim with reasonable diligence.”

 

Independent medical examinations by insurance company doctors: The new Michigan No-Fault law imposes the following rules for IMEs of car accident victims by insurance company-hired IME doctors: (1) The IME doctors must be licensed in Michigan; (2) The examining IME doctor must be a licensed, board certified, or board eligible physician qualified to practice in the area of medicine appropriate to treat the car accident victim’s condition; (3) During the year before an IME, the IME doctor must have devoted a majority of professional time to clinical practice of medicine/specialty or teaching in an accredited medical school.


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