HB 5143 Summary

• Creates new section 2111f requiring automobile insurance policies with terms of less than 6 months to include the full annual premium amount and personal protection insurance benefits in the initial premium charge.

• Prohibits insurers from refunding the portion of initial premiums covering the full annual amount and personal protection insurance benefits when short-term policies are canceled, except when canceled for specified reasons including loss of required coverage or replacement with another policy.

• Amends section 3020 to add subsection (5) establishing the same non-refundable premium structure for short-term auto policies while preserving existing cancellation and pro-rata refund rights for other coverage portions.

• Updates section 3104 regarding the catastrophic claims association's premium calculation to ensure rates for short-term policies include the full annual catastrophic claims association premium in the initial premium charged to policyholders.

• Changes terminology throughout from "commissioner" to "director of the department" and updates various statutory language for clarity.