Michigan Bulletins Requires Certain Documentation for No-Fault PIP Exclusion & Addresses Mid-Term Endorsements/Option to Cancel

Michigan Bulletins Requires Certain Documentation for No-Fault PIP Exclusion & Addresses Mid-Term Endorsements/Option to Cancel

 

On July 7, 2020 the Michigan Department of Insurance and Financial Services (DIFS) Director Fox issued Bulletin 2020-30-INS, which reminds insurers that failure to collect documentation of qualified health coverage (QHC) from policyholders who opt out of purchasing personal protection insurance (PIP) medical coverage could result in an insurer being liable to provide that coverage under certain circumstances. The bulletin further indicates that insurers and agents that are found not to be collecting QHC documentation when issuing or renewing polices where an insured or relative opts out or is excluded, whether in the course of an investigation of a consumer complaint or the course of a market conduct examination, may be subject to administrative action.

The DIFS also issued on July 8, 2020 Bulletin 2020-30-INS that informs auto insurers that they must offer all of their customers one of the following: 1) mid-term endorsements or 2) the option to cancel and reissue their policy under the new law. If an insurer does not offer mid-term endorsements, it must offer insureds the option to cancel and reissue. MCL 500.3020(1) requires a policy of casualty insurance—including “all classes of motor vehicle coverage”—to include a provision stating that the policy may be canceled at any time at the request of the insured, in which case the insurer shall refund the excess of paid premium or assessment above the pro rata rates for the expired time.

 

Question regarding the bulletin can be directed to:
Department of Insurance and Financial Services, Office of Consumer Services, 530 W. Allegan Street – 7th Floor, P.O. Box 30220, Lansing, Michigan 48909-7720, Toll-Free: (877) 999-6442

DIFS-Autoinsurance@michigan.gov

 

Link to Bulletin 2020-30-INS

Link to Bulletin 2020-31-INS