Motor Vehicle Personal and Property Protection, the Michigan no-fault act

What this document is

Michigan Insurance Code of 1956, Chapter 31 - Motor Vehicle Personal and Property Protection, the Michigan no-fault act (MCL 500.3101 to 500.3179, 58 sections) is a state statute published by Michigan Legislature (www.legislature.mi.gov). It is one of the Michigan documents that insurance license exam questions are written from, including michigan property & casualty, michigan personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• MCL 500.3123(1) (Exclusions from property protection insurance benefits)

  “(1) Damage to the following kinds of property is excluded from property protection insurance benefits: (a) Vehicles and their contents, including trailers, operated or designed for operation upon a public highway by power other than muscular power, unless the vehicle is parked in a manner as not to...”

• MCL 500.3114(3) (Persons entitled to personal protection insurance benefits; employer furnished vehicle)

  “(3) An employee, his or her spouse, or a relative of either domiciled in the same household, who suffers accidental bodily injury while an occupant of a motor vehicle owned or registered by the employer, shall receive personal protection insurance benefits to which the employee is entitled from the...”

• MCL 500.3131(1) (Residual liability insurance; coverage)

  “Residual liability insurance shall cover bodily injury and property damage which occurs within the United States, its territories and possessions, or in Canada. This insurance shall afford coverage equivalent to that required as evidence of automobile liability insurance under the financial...”

• MCL 500.3113(a) (Person not entitled to personal protection insurance benefits)

  “A person is not entitled to be paid personal protection insurance benefits for accidental bodily injury if at the time of the accident any of the following circumstances existed: (a) The person was willingly operating or willingly using a motor vehicle or motorcycle that was taken unlawfully, and...”

• MCL 500.3106(1) (Accidental bodily injury; parked vehicle; conditions)

  “(1) Accidental bodily injury does not arise out of the ownership, operation, maintenance, or use of a parked vehicle as a motor vehicle unless any of the following occur: (a) The vehicle was parked in such a way as to cause unreasonable risk of the bodily injury which occurred. (b) Except as...”

• MCL 500.3121(5) (Property protection insurance benefits; measure and limit)

  “(5) Property protection insurance benefits consist of the lesser of reasonable repair costs or replacement costs less depreciation and, if applicable, the value of loss of use. However, property protection insurance benefits paid under 1 policy for damage to all tangible property arising from 1...”

• MCL 500.3131(1) and (2) (Residual liability insurance; coverage)

  “(1) Residual liability insurance shall cover bodily injury and property damage which occurs within the United States, its territories and possessions, or in Canada. This insurance shall afford coverage equivalent to that required as evidence of automobile liability insurance under the financial...”

• MCL 500.3113(c) (Person not entitled to personal protection insurance benefits)

  “A person is not entitled to be paid personal protection insurance benefits for accidental bodily injury if at the time of the accident any of the following circumstances existed: (a) The person was willingly operating or willingly using a motor vehicle or motorcycle that was taken unlawfully, and...”

• MCL 500.3112 (Persons to whom personal protection insurance benefits payable; discharge of insurer's liability)

  “Payment by an insurer in good faith of personal protection insurance benefits, to or for the benefit of a person who it believes is entitled to the benefits, discharges the insurer's liability to the extent of the payments unless the insurer has been notified in writing of the claim of some other person.”

• MCL 500.3114(3) (Persons entitled to personal protection insurance benefits; order of priority)

  “(3) An employee, his or her spouse, or a relative of either domiciled in the same household, who suffers accidental bodily injury while an occupant of a motor vehicle owned or registered by the employer, shall receive personal protection insurance benefits to which the employee is entitled from the...”

• MCL 500.3123(1)(b) (Exclusions from property protection insurance benefits)

  “(b) Property owned by a person named in a property protection insurance policy, the person's spouse or a relative of either domiciled in the same household, if the person named, the person's spouse, or the relative was the owner, registrant, or operator of a vehicle involved in the motor vehicle...”

• MCL 500.3107(1)(c) (Expenses and work loss for which personal protection insurance benefits payable)

  “(c) Expenses not exceeding $20.00 per day, reasonably incurred in obtaining ordinary and necessary services in lieu of those that, if he or she had not been injured, an injured person would have performed during the first 3 years after the date of the accident, not for income but for the benefit of...”

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