No-fault certification under section 3163 of the Michigan insurance code

Issued and entered December 1, 1983 by Nancy A. Baerwaldt, Commissioner of Insurance

The purpose of this bulletin is to clarify the coverages to be provided by companies having a Michigan Certification Form on file with the Michigan Insurance Bureau. A copy of the form is attached hereto.

NO-FAULT CERTIFICATION

Under Section 3163 and the filed form, a company is obligated to provide personal and property protection insurance as is set forth in Chapter 31 of the Michigan Insurance Code (Code) and collision damage benefits equivalent to benefits which would have been recoverable under property damage liability had tort not been abolished. This equates to limited collision insurance without a deductible.

LIMITED PROPERTY DAMAGE LIABILITY ("MINI-TORT")

Under Section 3135(2)(d) of the Code, a person remains subject to tort liability for damages up to $400 to motor vehicles, to the extent that the damages are not covered by insurance. Therefore, only individuals having damages which are not covered by insurance may recover under mini-tort.

OUT-OF-STATE INSUREDS; APPLICABILITY OF MINI-TORT

Out-of-state insureds having coverage through a company which has a Section 3163 Certification Form on file who are involved in an accident in Michigan and are not substantially at fault, will have all damages covered in their entirety, including collision. That insured could not, therefore, collect under the mini-tort provision of the no-fault law.

Because all damages are covered in the above situation, mini-tort does not apply. Consequently, it is not appropriate for an insurer to deduct $400 from payment in such a situation in lieu of mini-tort.

MICHIGAN CERTIFICATION FORM MICHIGAN INSURANCE CODE -- CHAPTER 31, SEC. 3163

The __ of __ hereby (Company) (Address) certifies that any accidental bodily injury or property damage occurring in the State of Michigan on or after October 1, 1973, arising from the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle by a resident of Canada or any State of the United States of America, other than Michigan, who is insured under any automobile liability policy issued by said company shall be subject to the personal and property protection insurance system set forth in Chapter 31 of the Michigan Insurance Code, excepting that said company shall provide collision damage benefits equivalent to benefits which would have been recoverable under property damage liability had tort not been abolished. Such certification is further conditioned to the extent that if such policy also provides direct benefits without regard to fault pursuant to contractual agreement, the law of Canada or the law of such other state or territory, then (1) the personal and property protection insurance benefits provided for and in accordance with this certification shall not apply to the extent that benefits for the same elements of loss are paid, payable or required to be provided under such contractual agreement, the law of Canada or the law of such other state or territory, and (2) the total amounts of personal and property protection insurance benefits which would be payable in accordance with this certification shall be reduced by the amount paid, payable or required to be provided for the same elements of loss under such contractual agreement, the law of Canada or the law of such other state or territory.

(Name)________________ (Title)_____________________

(Signature)_______________________________________