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SB 282

Insurance: no-fault; penalties for lapse of insurance policy; provide waiver for certain individuals. Amends secs. 2118 & 2120 of 1956 PA 218 (MCL 500.2118 & 500.2120) & adds sec. 2116c.

2023-2024 Regular Session Introduced by Rosemary Bayer and 7 co-sponsors

SB 282 establishes penalties for no-fault auto insurance policy lapses in Michigan while creating waivers for certain individuals unable to maintain continuous coverage.

referred to second reading
#corrections:parole #insurance:no-fault
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Bill Summary · SB 282

Legislative bill overview

SB 282 modifies Michigan's no-fault auto insurance law by establishing penalties for allowing insurance policies to lapse and creates a waiver mechanism for certain individuals who may be unable to maintain continuous coverage. The bill amends existing insurance code sections and adds new provisions addressing policy lapse consequences and exemptions.

Why is this important

Continuous auto insurance coverage is a legal requirement in Michigan, and lapses can result in driver license suspension, fines, and other penalties. This bill addresses the practical challenge that some individuals—potentially those with financial hardship or administrative barriers—struggle to maintain uninterrupted coverage, while also clarifying penalty structures for non-compliance.

Potential points of contention

  • Waiver eligibility criteria: The specific grounds for obtaining a waiver and whether they adequately balance consumer protection with insurance coverage requirements remain unclear from the bill title alone
  • Penalty proportionality: Questions about whether new penalties are appropriately scaled and whether they might disproportionately affect low-income drivers who cannot maintain continuous coverage
  • Administrative burden: Implementation questions about how waivers will be processed, who determines eligibility, and whether the system creates gaps in required insurance coverage

Compiled from official sources — confirm details with the bill’s official record.

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