HB 5517 Summary

• Eliminates Michigan's no-fault automobile insurance system effective January 1, 2020 by transitioning to a fault-based system where drivers choose between unlimited or limited personal injury protection coverage.

• Requires all motor vehicle owners to maintain automobile liability insurance complying with section 3009 ($20,000 per person/$40,000 per accident bodily injury; $10,000 property damage) instead of the current no-fault security requirements.

• Abolishes tort liability for vehicle owners maintaining required insurance except for noneconomic damages (death, serious impairment, permanent disfigurement) and limited economic damages up to $1,000 for vehicle damage.

• Transfers administration of assigned claims from the Secretary of State to the Michigan Automobile Insurance Placement Facility and eliminates the Catastrophic Claims Association's role after December 31, 2019.

• Makes technical changes throughout the insurance code replacing "commissioner" with "director" and updating statutory language; bill only takes effect if companion bills HB 5518-5523 are also enacted.