Auto Insurance Reform FAQ

A recent court decision may affect some of the information contained on this website. DIFS is working to review and update all auto insurance-related content as appropriate.

On May 30, 2019, Governor Whitmer signed historic bipartisan no-fault auto insurance reform legislation to provide lower rates for Michigan drivers, protect insurance coverage options, and strengthen consumer protections.

This webpage will be updated with the latest information for insurance companies to provide implementation guidance.

Disclaimer: The information contained within this website pertains to Public Acts 21 and 22 of 2019. It is advisory in nature, and is not meant to be a substitute for legal advice.

Frequently Asked Questions

Can companies charge the MCCA Deficit Recoupment, even when PIP coverage has been rejected?

The following questions were posted on 10/11/19.

What is the appropriate MCCA premium charge for motorcycles?

The following questions were posted on 12/06/19.

Can postal codes be grouped together and rated on a territorial basis? If not, how are companies allowed to group geographical locations together (county, city, etc.)? Territories may not be based on postal zones (i.e. zip codes). This includes grouping a set of zip codes together and making one or more territories. Companies may set their territories on a method that is not based on zip code or a group of zip codes.

The following questions were posted on 04/02/20.

Do the mandated PIP premium reductions apply to commercial automobile policies?

Limits/Coverage

Section 3107c(8) requires insurers to offer a rider that will provide coverage for attendant care in excess of the $50,000, $250,000 or $500,000 PIP limit.
1. Are there any regulatory requirements for this rider?
Yes, insurers are required to offer all levels of PIP coverage, including unlimited.

TNCs and TNC Drivers

The new law states that an applicant or named insured that is a transportation network company shall only select PIP coverages of $250,000, $500,000 or unlimited.
There are no requirements regarding what level of PIP coverage a TNC driver must carry.

The onus to maintain insurance on a TNC vehicle ultimately lies with the TNC. A company could require their drivers to maintain a certain level of coverage, but the company is held responsible up to their chosen level of PIP coverage if the driver does not maintain that coverage.

Insurers can continue to exclude driving for a TNC from personal auto coverage (MCL 500.3017). TNCs are required to make potential drivers aware of common insurance exclusions and receive their written acknowledgement of these exclusions (MCL 257.2125).

Passengers

If a passenger is covered under an auto insurance policy with PIP benefits, they are covered under that policy.

If a passenger is covered under an auto policy but has opted out of PIP under 3107d or chosen the 3109a(2) exclusion, they are not eligible for PIP reimbursement from the TNC’s policy.

The following question was posted on 10/11/19.
The following question was posted on 12/03/19.
The following question was posted on 12/06/19.
1. What coverage and premium is reduced when someone selects a PIP option of $50,000, $250,000 or $500,000? All PIP limits apply to PIP medical. The full PIP premiummust be reduced by the amount required in MCL 500.2111f(2). Companies can only charge the portion of MCCA premium that is from a deficiency, if applicable.
2. What coverage and premium is reduced when someone elects to not have PIP coverage? A policy that does not include PIP coverage under the opt-out in MCL 500.3107d, will not receive PIP medicalcoverage and the PIP medicalpremium must be reduced by 100%. PIP coverages that are separate from PIP medical coverage such as work loss, replacement services, and funeral and burial expenses as described in MCL 500.3107 are still included in the policy. Companies can only charge the portion of MCCA premium that is from a deficiency, if applicable.
The following question was posted on 09/25/20.
1. Do accident-only indemnity plans, fixed indemnity plans, and hospital indemnity plans constitute Qualified Health Coverage (QHC)? No. Accident-only indemnity plans, fixed indemnity plans, and hospital indemnity plans are not considered Qualified Health Coverage (QHC). QHC as defined in MCL 500.3107d(7)(b)(i) is coverage that:
  - Does not exclude or limit coverage for motor vehicle accidents; and
  - Has an annual deductible of $6,000 or less per covered individual.
The following question was posted on 10/19/20.
1. How do the changes in 3135(3)(e) affect the limited property damage liability (Mini-Tort) coverage that insurers offer? Public Acts 21 and 22 of 2019 increased the maximum amount of damages available for a mini-tort claim to $3,000.00 for accidents occurring after July 1, 2020. To comply with this change, limited property damage liability coverage must pay up to $3,000.00 on a mini-tort claim for any accident occurring after July 1, 2020. This coverage amount will apply regardless of the date a policy was issued or any conflicting policy language.
The following question was updated on 3/19/24.
1. Does Veterans Affairs (VA) coverage, TRICARE, or CHAMPVA constitute Qualified Health Coverage (QHC)? The U.S. Department of Veterans Affairs has determined that VA coverage is not Qualified Health Coverage (QHC) under Michigan’s auto insurance law, so consumers may not use VA coverage to exclude or opt out of PIP medical coverage. DIFS has confirmed with the U.S. Department of Defense that TRICARE and CHAMPVA coverage constitute QHC as defined in section 3107d(7)(b)(i). Therefore, customers may rely on TRICARE or CHAMPVA coverage to be eligible for the PIP medical options described in sections 3107c(1)(a), 3107d, and 3109a. Please see Bulletin 2023-17-INS for more information.
The following question was posted on 1/19/21.
The following question was posted on 4/8/21.
The following question was posted on 5/14/21.
The following question was updated on 10/27/22.
1. Will the Qualified Health Coverage (QHC) maximum deductible be adjusted this year?
  No. For the period of July 1, 2024 through June 30, 2025, the maximum deductible for determining whether health or accident coverage is QHC remains $6,579. MCL 500.3107d(7)(b)(i)(B) requires the Director to annually adjust the QHC maximum deductible by the percentage change in the medical component of the Consumer Price Index for the preceding calendar year if the adjustment, or the total of the adjustment and previous unadded adjustments, is $500 or more. The Director has performed the requisite calculation and has determined that the $500.00 threshold for adjusting the deductible has not been met. Please see Bulletin 2024-12-INS for more information.
1. When are insurers required to obtain a signed BI selection form?
- Provide the applicant/named insured the liability options available.
- Provide the applicant/named insured a price for each option.
- Offer the applicant/named insured the options and BI Selection form.
First Renewal Effective on or after July 2, 2020 – If the insured does not provide a signed and completed BI selection form, the insurer shall issue the policy with $250,000/$500,000 limits.

The following questions were posted on 10/11/19.
1. When are carriers required to obtain a signed PIP Selection/Rejection form? Carriers are required to provide a PIP Selection/Rejection form:
  1. at the time of new business; and
  2. at renewal.
  The following questions were posted on 12/06/19.
  
  PIP and BI Forms Bulletin
  1. When will the PIP and BI selection forms be issued by DIFS? The Choice of Bodily Injury Liability Coverage Limits Form and Personal Injury Protection (PIP) Choice Forms have been transmitted to companies via Bulletin 2023-11-INS. Word versions have also been emailed to company SERFF contacts.
  1. What CSL limit is equivalent to $250,000 per person/$500,000 per occurrence? $510,000 CSL is the appropriate CSL equivalent to $250,000/$500,000 as you must add $10,000 for property damage.
  2. Will the BI form be updated to accommodate companies that only offer CLS? No, the BI form was created to follow the statute which requires insurers to issue a policy at $250,000/$500,000 if the form is not returned.
  3. Can companies modify the BI form if they only offer CSL? Companies must use the BI form issued by the Director. When you provide the applicant/insured the options and price for each option, you may explain that their policy will be issued at $510,000 if you do not offer split limits
  4. Must a company change the limits on a policy with CSL limits greater than or equal to $510,000 if the customer does not return the BI form? Customers with a CSL limit greater than or equal to $510,000 will not need to have their limit changed if they do not return the form.
  1. Is the intent of the department that the Commercial form would be the only form used by Commercial Auto customers/applicants? If the named insured is an individual, you should use the individual form. If the named insured is a Business/Company, you should use the Commercial/Business form.
  2. The Commercial form does not provide options for the $50,000 Medicaid nor the $250,000 Opt out options when Medicare &/or other qualifying health insurance is carried. Are we correct in interpreting this to mean that these options do not apply to Commercial Auto policies? If the named insured is a business/company, they are not eligible for the PIP options of $50,000, $250,000 with exclusions, or no PIP.
  Accreditation
  1. Do entities that provide ancillary services to injured persons—such as case management, transportation, or guardianship/conservatorship planning—need to be accredited under MCL 500.3157? No. These entities do not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) and therefore do not need to be accredited.
  2. Do pharmacies need to be accredited under MCL 500.3157? No. These entities do not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) and therefore do not need to be accredited by CARF or The Joint Commission.
  3. Do providers of durable medical equipment need to be accredited under MCL 500.3157? No. These entities do not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) and therefore do not need to be accredited by CARF or The Joint Commission.
  The following question was posted on 06/03/20.
  1. Do family members who provide attendant care need to be accredited under MCL 500.3157? No. These persons do not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) and therefore do not need to be accredited by CARF or The Joint Commission.
  The following question was posted on 06/23/20.
  1. Do vocational rehabilitation counselors need to be accredited under MCL 500.3157? No. These persons do not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) and therefore do not need to be accredited by CARF or The Joint Commission.
  The following question was posted on 07/23/20.
  1. Do providers of recreational therapy need to be accredited under MCL 500.3157? No. These persons do not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) and therefore do not need to be accredited by CARF or The Joint Commission.
  The following question was posted on 08/06/20.
  1. Do entities that provide post-acute brain and spinal rehabilitation care need to be accredited under MCL 500.3157(12) if the entity providing the care has a specialty license issued by the Department of Licensing and Regulatory Affairs (LARA)? Yes. Entities that “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) need to be accredited by CARF or The Joint Commission. Please see Bulletin 2020-27-INS for further information.
  The following question was posted on 09/08/20.
  1. Do providers of psychotherapy need to be accredited under MCL 500.3157? No. These persons do not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) and therefore do not need to be accredited by CARF or The Joint Commission.
  The following question was posted on 09/17/20.
  1. Do stand-alone individual providers that provide post-acute brain and spinal rehabilitation care need to be accredited under MCL 500.3157? MCL 500.3157(15)(g) defines a neurological rehabilitation clinic as "a person that provides post-acute brain and spinal rehabilitation care." A "person" is defined in MCL 500.114 and includes an individual in addition to an institution, company, association, organization, or any other legal entity. However, CARF and the Joint Commission do not accredit individuals. CARF and the Joint Commission only accredit entities. Therefore, an individual provider that "provides post-acute brain and spinal rehabilitation care" is not required to be accredited by CARF or The Joint Commission.
  The following question was posted on 10/16/20.
  1. Do chiropractors need to be accredited under MCL 500.3157? Accreditation is required for any “person that provides post-acute brain and spinal rehabilitation care.” See MCL 500.3157(15)(g). Chiropractors whose services are limited to spinal rehabilitation care do not need to be accredited under MCL 500.3157.
  2. Do speech pathologists need to be accredited under MCL 500.3157? No. These entities do not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) and therefore do not need to be accredited by CARF or The Joint Commission.
  The following question was posted on 01/14/21.
  1. Do persons that provide care for post-acute brain injury only or persons that provide care for spinal rehabilitation only need to be accredited under MCL 500.3157? Section 3157(15)(g) defines a neurological rehabilitation clinic as “a person that provides post-acute brain and spinal rehabilitation care.” Accreditation is required to the extent that a person is providing both post-acute brain and spinal rehabilitation care.
  The following question was posted on 06/01/21.
  1. Do agencies that provide only attendant care need to be accredited under MCL 500.3157? No. These entities do not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g) and therefore do not need to be accredited by CARF or The Joint Commission.
  The following question was posted on 06/21/21.
  1. What documentation does a neurological rehabilitation clinic need to show to prove that it is accredited, or in the process of becoming accredited, under MCL 500.3157(12)? If a neurological rehabilitation clinic files a provider appeal under MCL 500.3157a, and if the appeal involves a dispute over whether the clinic is accredited, then DIFS will ask the clinic for proof of accreditation. DIFS will not collect or post accreditation documentation.
  The following question was posted on 07/19/21.
  1. Do post-acute patient care facilities that do not provide both post-acute brain and spinal rehabilitation care need to be accredited under MCL 500.3157? No. If a post-acute patient care facility does not “provide[] post-acute brain and spinal rehabilitation care” under MCL 500.3157(15)(g), it does not need to be accredited by CARF or The Joint Commission.
  Miscellaneous
  1. Can insurers endorse policies mid-term to add the new limits/coverages? If the insurer’s system can accommodate such changes, they are permitted to endorse a policy mid-term with the new limits/coverage if the change is effective on or after July 2, 2020 and if requested by the insured. Please note that any such endorsement must be filed and approved by DIFS and reflect all coverage and rating changes that would otherwise be available on a separately issued policy effective on or after 7/2/2020, including but not limited to the new bodily injury limit options, PIP limit options, attendant care riders, new mini-tort limit, and all rates including the new MCCA assessment. In addition, insurers must use their approved bodily injury and PIP selection forms in the same manner as if the policy were being issued or renewed after 7/2/2020. If an insured requests a PA 21/22-compliant policy and the insurer’s system cannot accommodate a mid-term change, the insurer must offer to cancel and reissue a policy. For more information, please see Bulletin 2020-31-INS.
  The following question was posted on 10/11/19.
  1. Do the reforms apply to commercial insurance? Yes. Commercial Auto risks must comply with the changes outlined in all sections modified (except Chapter 21) to the extent they are applicable to Commercial Auto.
  The following question was posted on 10/22/19.
  1. If I have questions that haven’t been answered here, who can I send them to? When new questions and responses are added to the site, notification will be sent. Should you have questions or comments about the FAQ, such as suggested content, please contact DIFS through our dedicated email address for all PA 21 and PA 22 information: DIFS-PA21-22@michigan.gov.
  The following question was posted on 12/06/19.
  
  Attendant Care and the MCCA
  1. DIFS has received many questions about MCCA and Attendant Care reimbursement and reporting. These questions should be directed to the MCCA. DIFS has received many questions about MCCA and Attendant Care reimbursement and reporting. These questions should be directed to the MCCA.
  The following question was posted on 10/28/20.
  Fee Schedule
  1. Where can I find more information about the fee schedule?
  Utilization Review
  1. What is Utilization Review and how does it affect auto insurers?
  - Under Rule 66, establish a Utilization Review program no later than February 16, 2021, using Application for Unconditional Certification of Auto Insurance Utilization Review Program (FIS 2362) and, under Rule 67, apply for renewal of the program’s certification at least 90 days before it is set to expire.
  - Under Rule 64, when necessary, gather sufficient information to enable the insurer to identify overutilized or otherwise inappropriate treatment, product, training, service, or accommodation provided after July 1, 2020 to an injured person who is insured under a policy of no-fault automobile insurance issued under chapter 31 or chapter 31A of the act, MCL 500.3101 to 500.3179 and 500.3181 to 500.3189. Under Rule 69, all information gathered under these reviews must be retained for at least two years after the request.
  - Under Rule 63, submit any request for additional information or explanation to the provider within 30 days of the receipt of a disputed bill.
  - Under Rule 64, issue a written notice of the determination to the provider within 30 days when a determination is made that a treatment, product, training, service, or accommodation is not medically appropriate.
  - Under Rule 65, if the insurer wishes to reply to a provider appeal, the insurer must respond within 21 days after the date of the notice.
  - Under Rule 68, submit an annual report to the Department no later than March 31 of each year. This report shall consist of a form prescribed by the department and will include utilization review data and activities.
  Yes, but only if the following is true: (1) the contact information noted on the application form is the same for all included companies; (2) the utilization review program must be same for all included companies. When completing one application for multiple companies and NAIC numbers, please attach all company names and NAIC numbers on a separate document with the application.
  2111f(8) Filings
  1. Our insurer just filed a new personal auto program recently. Are we required to submit a rate filing to demonstrate that the savings from the fee schedule have been passed along to our insureds?
  Any insurer that has a filed product effective prior to July 2, 2021 must submit a filing demonstrating compliance with the statute. New insurers without affiliates that do not have realized savings on accidents that occurred prior to July 2, 2021 must demonstrate that there are no savings by completing the required exhibit and providing an explanation of why there are no savings realized.
  Insurers that consolidate insurers or introduce new affiliated insurers are required to demonstrate compliance with passing along savings realized pursuant to MCL 500.2111f(8) for individuals who suffered accidental bodily injury from motor vehicle accidents that occurred before July 2, 2021, regardless of which affiliate or new insurer the individual is insured with."
  
  The requirements shared regarding section 2111f(8) do not apply to motorcycle programs.
  
  DIFS is requiring all insurers to submit a filing between the dates of 7/2/2022 and 9/9/2022 to demonstrate compliance with MCL 500.2111f(8).
  
  Insurers do not have to file a copy of their Michigan Appendix unless specifically requested in an objection. Any information that meets the definition of Trade Secret in accordance with MCL 445.1902 may request to have this information kept as confidential in the filing. If DIFS does not feel the materials meet the definition of trade secret, an objection will be issued to address with the insurer.
  
  This requirement will apply to both domestic and foreign insurers.
  
  In accordance with MCL 500.2111f(8), insurers will be required demonstrate compliance with MCL 500.2111f(8) with all rate filings.
  
  Filing requirements for future periods will be published at a later date.
  
  Any overstated savings would be reported and adjusted in a future filing.
  
  If insurers are not filing to revise rates at this time, a full indication is not required with this filing.
  
  The PIP Rate Reduction exhibit is intended to demonstrate compliance with the reduction in rates from MCL 500.2111f(2). The Savings Realized Exhibit is intended to demonstrate compliance with the savings realized from the implementation of the fee schedule from MCL 500.2111f(8). The insurer must determine the amount of savings they have realized from the application of the fee schedule in MCL 500. 3157(2) - (12) and report on the new exhibit.