As the Michigan Legislature’s 2023-24 session approaches a close, several bills that would bear on the collision repair industry still awaited a final vote as of midday Dec. 19.
Arguably the most comprehensive of the bills, House Bill (HB) 5950 would establish insurance policies for peer-to-peer car sharing programs.
Two other relevant bills, HB 5696 and HB 6267, would steepen penalties against companies that modify vehicle exhaust kits and strengthen general requirements for insurance companies doing business in Michigan, respectively.
The last days of the Michigan House’s and Senate’s legislative terms are Dec. 20 and Dec. 23, respectively. Several pieces of legislation related and unrelated to automotive policy remain dormant, as absences of both Democratic and Republican legislators have led to the lack of a quorum.
HB 5950 would allow automobile insurance companies to withhold third-party liability coverage, collision coverage, personal protection insurance and other forms of insurance for any loss or injury that occurs during a peer-to-peer car sharing period.
However, the bill states insurers would not be prohibited from covering shared vehicles, and shared vehicle owners’ insurance policies wouldn’t be required to provide coverage during the specific time the car is being shared.
For collisions that occur during car-sharing periods not covered by the car owner’s standard insurance, companies that defend or compensate the driver of the non-shared car would be required to seek recovery from the insurer contracted by the peer-to-peer car sharing company.
The bill also would explicitly authorize insurers to “limit” collision coverage during periods of car sharing.
In June, HB 5696 took a vital step necessary to advance to the full House for a final vote.
The legislation would raise civil fines from $100 to $500 for people and repair shops that install excessively loud exhausts for the first time. Second-time offenders would be required to pay a civil fine of $1,000, and third-time offenders would be guilty of a misdemeanor punishable by a $1,000 fine.
In September, Michigan Independent Auto Dealers Association (MIADA) Executive Director Annette Chapman told Autobody News the legislation would be “crucial” to members if enacted, especially because it would potentially implicate repair vendors.
Asked whether bill passage was expected by the time the current House session ends this week, a spokesperson for bill sponsor Rep. Natalie Price gave a general response.
“This bill remains a priority to Representative Price, and she is continuing to work with her colleagues on this legislation,” spokesperson Alimatou Sarr wrote in an email.
HB 6267 would impose more stringent requirements on insurance companies, including automobile insurance companies, doing business in Michigan.
The bill outlines clear requirements for what vehicle insurers must include in the manuals of rules, including any modifications thereof, that they file with the state.
Manuals would be required to include, among other things: Rating steps or the rate order of calculations, all rating rules, a description of offered coverages and rules on coverage limitations or restrictions, all rules for premium minimums and waivers, descriptions for the handling of terminations and reinstatements, and descriptions of discounts and surcharges, and any rules covering when they apply.
A spokesperson for Rep. Kristian Grant, who introduced the legislation, said he did not expect passage by year-end.
But next session could be different.
“Unfortunately, HB 6267 did not see movement and will be unable to be passed before year’s end,” spokesperson Zac Ozormoor wrote in an email. “Rep. Grant does hope for the bill to be passed during the next legislative cycle and will continue to work toward that end.”
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.