[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 625 Introduced in Senate (IS)]
105th CONGRESS
1st Session
S. 625
To provide for competition between forms of motor vehicle insurance, to
permit an owner of a motor vehicle to choose the most appropriate form
of insurance for that person, to guarantee affordable premiums, to
provide for more adequate and timely compensation for accident victims,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 22, 1997
Mr. McConnell (for himself, Mr. Moynihan, Mr. Lieberman, Mr. Gorton,
and Mr. Grams) introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To provide for competition between forms of motor vehicle insurance, to
permit an owner of a motor vehicle to choose the most appropriate form
of insurance for that person, to guarantee affordable premiums, to
provide for more adequate and timely compensation for accident victims,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Auto Choice Reform Act of 1997''.
SEC. 2. FINDINGS.
Congress finds that--
(1) the costs of operating a motor vehicle are excessive
due in substantial part to the legal and administrative costs
associated with the resolution of claims under the tort
liability insurance system;
(2) the tort liability insurance system often results in--
(A) the failure to provide compensation
commensurate with loss;
(B) an unreasonable delay in the payment of
benefits; and
(C) the expenditure of an excessive amount for
legal fees;
(3) the incentives of the tort liability insurance system
for motor vehicles are distorted, and result in--
(A) significant fraud in the claims process, which
exacerbates the level of distrust of many individuals
in the United States with respect to the legal process
and the rule of law;
(B) significant, wasteful, fraudulent, and costly
overuse and abuse of scarce health care resources and
services;
(C) unbearable cost burdens on low-income
individuals, imposing on them the Hobson's choice of
driving on an unlawful, uninsured basis or foregoing
essential needs, such as food and adequate shelter;
(D) significant reductions in, access to, and
purchases of, motor vehicles, which--
(i) damage the economic well-being of many
low-income individuals; and
(ii) cause unnecessary harm to a critical
component of the economy of the United States;
(E) significant deterioration of the economic well-
being of the majority of major cities in the United
States through the imposition of a massive tort tax
that--
(i) places a disproportionate burden on
urban residents; and
(ii) contributes to the abandonment of the
cities by many taxpayers who are able to
achieve substantial after-tax savings on
automobile insurance premiums by moving to
adjacent suburban communities; and
(F) significant inability to achieve market-based
discounts in insurance rates for owners of safer cars,
which reduces the level of safety for drivers and
passengers of motor vehicles;
(4) insurance to indemnify individuals for personal
injuries arising from motor vehicle collisions is frequently
unavailable at a reasonable cost because of the potential
liability for third-party tort claims;
(5) a system that gives consumers the opportunity to insure
themselves and that separates economic and noneconomic damages
for the purposes of purchasing insurance would provide
significant cost savings to drivers of motor vehicles;
(6) a system that enables individuals to choose the form of
motor vehicle insurance that best suits their needs would--
(A) enhance individual freedom;
(B) reduce the cost of motor vehicle insurance; and
(C) increase average compensation in the event of
an accident; and
(7) a system that targets and emphasizes the scourge of
those individuals who drive under the influence of drugs or
alcohol will further deter such dangerous and unlawful conduct.
SEC. 3. PURPOSE.
The purpose of this Act is to allow consumers of motor vehicle
insurance to choose between--
(1) an insurance system that provides substantially the
same remedies as are available under applicable State law; and
(2) a predominately first-party insurance system that
provides for--
(A) more comprehensive recovery of economic loss in
a shorter period of time; and
(B) the right to sue negligent drivers for any
uncompensated economic losses.
SEC. 4. DEFINITIONS.
In this Act:
(1) Accident.--The term ``accident'' means an unforeseen or
unplanned event that--
(A) causes loss or injury; and
(B) arises from the operation, maintenance, or use
of a motor vehicle.
(2) Add-on law.--The term ``add-on law'' means a State law
that provides that persons injured in motor vehicle accidents--
(A) are compensated without regard to fault for
economic loss; and
(B) have the right to claim without any limitation
for noneconomic loss based on fault.
(3) Economic loss.--The term ``economic loss'' means any
objectively verifiable pecuniary loss resulting from an
accident, including--
(A) reasonable and necessary medical and
rehabilitation expenses;
(B) loss of earnings;
(C) burial costs;
(D) replacement services loss;
(E) costs of making reasonable accommodations to a
personal residence to make the residence more habitable
for an injured individual; and
(F) loss of employment, and loss of business or
employment opportunities, to the extent recovery for
such losses is allowed under applicable State law.
(4) Financial responsibility law.--The term ``financial
responsibility law'' means a law (including a law requiring
compulsory coverage) penalizing motorists for failing to carry
defined limits of tort liability insurance covering motor
vehicle accidents.
(5) Injury.--The term ``injury'' means bodily injury,
sickness, disease, or death.
(6) Insurer.--The term ``insurer'' means--
(A) any person who is engaged in the business of
issuing or delivering motor vehicle insurance policies
(including an insurance agent); or
(B) any person who is self-insured within the
meaning of applicable State law.
(7) Intentional misconduct.--
(A) In general.--Except as provided in subparagraph
(B), the term ``intentional misconduct'' means
conduct--
(i) with respect to which harm is
intentionally caused or attempted to be caused
by a person who acts or fails to act for the
purpose of causing harm, or with knowledge that
harm is substantially certain to result from
that action or failure to act; and
(ii) that causes or substantially
contributes to the harm that is the subject of
a claim.
(B) Clarification.--For purposes of this paragraph,
a person does not intentionally cause or attempt to
cause harm--
(i) solely because that person acts or
fails to act with the understanding that the
action or failure to act creates a grave risk
of causing harm; or
(ii) if the act or omission by that person
causing bodily harm is for the purpose of
averting bodily harm to that person or another
person.
(8) Motor vehicle.--The term ``motor vehicle'' means a
vehicle of any kind required to be registered under the
provisions of the applicable State law relating to motor
vehicles.
(9) No-fault motor vehicle law.--The term ``no-fault motor
vehicle law'' means a State law that provides that--
(A) persons injured in motor vehicle accidents are
paid compensation without regard to fault for their
economic loss that results from injury; and
(B) in return for the payment referred to in
subparagraph (A), claims based on fault including
claims for noneconomic loss, are limited to a defined
extent.
(10) Noneconomic loss.--The term ``noneconomic loss'' means
subjective, nonmonetary losses including pain, suffering,
inconvenience, mental suffering, emotional distress, loss of
society and companionship, loss of consortium, hedonic damages,
injury to reputation, and humiliation.
(11) Occupy.--The term ``occupy'' means, with respect to
the operation, maintenance, or use of a motor vehicle, to be in
or on a motor vehicle or to be engaged in the immediate act of
entering into or alighting from a motor vehicle before or after
its use for transportation.
(12) Operation, maintenance, or use of a motor vehicle.--
(A) In general.--The term ``operation, maintenance,
or use of a motor vehicle'' means occupying a motor
vehicle.
(B) Exclusions.--The term ``operation, maintenance,
or use of a motor vehicle'' does not include--
(i) conduct within the course of a business
of manufacturing, sale, repairing, servicing,
or otherwise maintaining motor vehicles, unless
the conduct occurs outside of the scope of the
business activity; or
(ii) conduct within the course of loading
or unloading a motor vehicle, unless the
conduct occurs while occupying the motor
vehicle.
(13) Person.--The term ``person'' means any individual,
corporation, company, association, firm, partnership, society,
joint stock company, or any other entity, including any
governmental entity.
(14) Personal protection insurance.--The term ``personal
protection insurance'' means insurance that provides for--
(A) benefits to an insured person for economic loss
without regard to fault for injury resulting from a
motor vehicle accident; and
(B) a waiver of tort claims in accordance with this
Act.
(15) Replacement services loss.--The term ``replacement
services loss'' means expenses reasonably incurred in obtaining
ordinary and necessary services from other persons who are not
members of the injured person's household, in lieu of the
services the injured person would have performed for the
benefit of the household.
(16) Resident relative or dependent.--The term ``resident
relative or dependent'' means a person who--
(A) is related to the owner of a motor vehicle by
blood, marriage, adoption, or otherwise (including a
dependent receiving financial services or support from
such owner); and
(B)(i) resides in the same household as the owner
of the motor vehicle at the time of the accident; or
(ii) usually makes a home in the same family unit
as that owner, even though that person may temporarily
live elsewhere.
(17) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, Guam, the United States Virgin Islands, American
Samoa, the Commonwealth of the Northern Mariana Islands, the
Trust Territories of the Pacific Islands, and any other
territory or possession of the United States.
(18) Tort liability.--The term ``tort liability'' means the
legal obligation to pay damages for an injury adjudged to have
been committed by a tort-feasor.
(19) Tort liability insurance.--The term ``tort liability
insurance'' means a contract of insurance under which an
insurer agrees to pay, on behalf of an insured, damages that
the insured is obligated to pay to a third person because of
the liability of the insured to that person.
(20) Tort maintenance coverage.--
(A) In general.--The term ``tort maintenance
coverage'' means insurance coverage under which a
person described in subparagraph (B), if involved in an
accident with a person covered by personal protection
insurance, retains a right to claim for injury based on
fault for economic and noneconomic losses under
applicable State law, without modification by any other
provision of this Act.
(B) Tort maintenance insured.--A person described
in this subparagraph is a person covered by the form of
insurance described in section 5(a)(2).
(C) Responsibility for payment.--The responsibility
for payment for any claim under subparagraph (A) is
assumed by the insurer of the person with tort
maintenance coverage to the extent of such coverage.
(21) Uncompensated economic loss.--
(A) In general.--The term ``uncompensated economic
loss'' means economic loss payable based on fault.
(B) Attorneys' fees.--The term includes a
reasonable attorney's fee calculated on the basis of
the value of the attorney's efforts as reflected in
payment to the attorney's client.
(C) Exclusions.--The term does not include amounts
paid under--
(i) personal protection insurance;
(ii) tort maintenance coverage;
(iii) no-fault or add-on motor vehicle
insurance;
(iv) Federal, State, or private disability
or sickness programs;
(v) Federal, State, or private health
insurance programs;
(vi) employer wage continuation programs;
or
(vii) workers' compensation or similar
occupational compensation laws.
(22) Uninsured motorist.--The term ``uninsured motorist''
means the owner of a motor vehicle, including the resident
relatives or dependents of the owner, who is uninsured under
either the personal protection system or the tort maintenance
system described in section 5(a)--
(A) at the limits prescribed by the applicable
State financial responsibility law; or
(B) an amount prescribed under section 5(b)(1)(A).
SEC. 5. AUTO CHOICE INSURANCE SYSTEM.
(a) Operation of the Right To Choose.--Under this Act, a person
shall have the right to choose between the following insurance systems:
(1) Personal protection system.--A person may choose
insurance under a system that provides for personal protection
insurance for that person and any resident relative or
dependent of that person.
(2) Tort maintenance system.--A person may choose insurance
under a system that provides for the form of motor vehicle
insurance (including tort liability, no-fault, add-on, or
uninsured motor vehicle insurance) that is otherwise required
in the State in which the person is insured.
(b) Personal Protection System.--
(1) Minimum policy requirements.--In order for a personal
protection insurance policy to be covered by this Act, a motor
vehicle insurance policy issued by an insurer shall, at a
minimum--
(A) provide personal protection insurance
coverage--
(i) with no per accident limit; and
(ii) in coverage amounts equal to the
greater of--
(I) the minimum per person limits
of liability insurance for personal
injury under the applicable State
financial responsibility law; or
(II) in a State covered by a no-
fault motor vehicle insurance law, the
minimum level of insurance required for
no-fault benefits;
(B) contain provisions for a waiver of certain tort
rights in accordance with this Act; and
(C) contain provisions under the applicable State
financial responsibility law relating to liability
for--
(i) property damage; and
(ii) bodily injury to protect third parties
whose rights to recover both economic and
noneconomic loss are not affected by the
immunities provided under this Act for those
persons choosing personal protection insurance
coverage.
(2) Superseding provision.--This Act supersedes a State law
to the extent that, with respect to the issuance of a personal
protection insurance policy, the State law--
(A) would otherwise bar a provision that provides
for the personal protection authorizations and
accompanying immunities set forth in this Act; or
(B) is otherwise inconsistent with the requirements
of this Act.
(3) Primacy of payment.--
(A) In general.--Personal protection insurance
benefits shall be reduced by an amount equal to any
benefits provided or required to be provided under an
applicable Federal or State law for workers'
compensation or any State-required nonoccupational
disability insurance.
(B) Reimbursement of payors.--
(i) In general.--A personal protection
insurer may take appropriate measures to ensure
that any person otherwise eligible for personal
protection benefits who has been paid or is
being paid for losses payable by personal
protection insurance from a source other than
the applicable personal protection insurer
shall not receive multiple payment for those
losses.
(ii) Accrual of rights.--Any right to
payment for losses referred to in clause (i)
from a personal protection insurer accrues only
to that payor. Payments by a payor referred to
in clause (i) shall not be counted against
personal protection limits for personal
protection insurance until such time as the
payor is reimbursed under this subparagraph.
(4) Prompt and periodic payment.--
(A) In general.--A personal protection insurer may
pay personal protection benefits periodically as losses
accrue.
(B) Late payment.--Unless the treatment or expenses
related to the treatment are in reasonable dispute, a
personal protection insurer who does not pay a claim
for economic loss covered by a personal protection
insurance policy issued under this Act within 30 days
after payment is due, shall pay--
(i) the loss compounded at a rate of 24
percent per annum, as liquidated damages and in
lieu of any penalty or exemplary damages; and
(ii) a reasonable attorney's fee calculated
on the basis of the value of the attorney's
efforts as reflected in payment to the
attorney's client.
(C) Administration of personal protection
benefits.--To the extent consistent with this Act, any
applicable provision of a State no-fault motor vehicle
law or add-on law governing the administration of
payment of benefits without reference to fault shall
apply to the payment of benefits under personal
protection insurance under this subsection.
(5) Motor vehicles with fewer than 4 load-bearing wheels.--
A personal protection insurer may offer, but shall not require,
personal protection coverage of any motor vehicle that has
fewer than 4 load-bearing wheels, not including the wheels of
an attachment to the motor vehicle.
(6) Authorizations for personal protection insurers.--A
personal protection insurer may write personal protection
coverage--
(A)(i) without any deductible; or
(ii) subject to a reasonable deductible, applicable
in an amount not to exceed $1,000 per person per
accident;
(B) with an exclusion of coverage for persons whose
losses are caused by driving under the influence of
alcohol or illegal drugs;
(C) at appropriately reduced premium rates,
deductibles and exclusions reasonably related to
health, disability, and accident coverage on an insured
person; and
(D) the deductibles and exclusions described in
subparagraphs (A) and (C) shall apply only to--
(i) the person named in the applicable
insurance policy; and
(ii) the resident relatives or dependents
of the person described in clause (i).
(c) Tort Maintenance System.--
(1) Required tort maintenance coverage.--The coverage for a
person who chooses insurance under subsection (a)(2) shall
include tort maintenance coverage at a level that is at least
equivalent to the level of insurance required under the
applicable State financial responsibility law for bodily injury
liability.
(2) Administration of tort maintenance coverage benefits.--
To the extent consistent with this Act, any applicable
provision of a State law governing the administration of
payment of benefits under uninsured or underinsured motorist
coverage applies to the payment of benefits under tort
maintenance coverage under section 5(c).
(d) Effect of Choice on Resident Relatives and Dependents.--
(1) In general.--Except as provided in paragraph (2), a
person who chooses either personal protection insurance or tort
maintenance coverage also binds the resident relatives and
dependents of that person.
(2) Exception.--An adult resident relative or a dependent
of a person described in paragraph (1) may select the form of
insurance that that person does not select if the adult
relative makes that selection expressly in writing.
(3) Implied consent.--In any case in which the resident
relative or dependent is injured in a motor vehicle accident,
the coverage of such person shall be the same as the person
described in paragraph (1).
(4) Terms and conditions.--Insurers may specify reasonable
terms and conditions governing the commencement, duration, and
application of the chosen coverage depending on the number of
motor vehicles and owners thereof in a household.
(e) Rules To Encourage Uniformity of Choice.--In order to minimize
conflict between the 2 options described in subsection (d), insurers
may maintain and apply underwriting rules that encourage uniformity
within a household.
(f) Failure To Elect Type of Insurance.--
(1) In general.--Any person who fails to elect a type of
insurance under this section shall be deemed to have elected
insurance under the tort maintenance system in effect in that
State.
(2) Rule of construction.--This subsection shall not be
construed to prevent a State from enacting a law that deems a
person who fails to elect a type of insurance under this
section to have elected insurance under the personal protection
system.
(g) Consumer Information Program.--The State official charged with
jurisdiction over insurance rates for motor vehicles shall establish
and maintain a program designed to ensure that consumers are adequately
informed about--
(1) the comparative cost of insurance under the personal
protection system and the tort maintenance system; and
(2) the benefits, rights, and obligations of insurers and
insureds under each system.
SEC. 6. SOURCE OF COMPENSATION IN CASES OF ACCIDENTAL INJURY.
(a) Accidents Involving Persons Choosing the Tort Maintenance
System.--A person described in section 5(a)(2) who is involved in an
accident with another person shall be subject to applicable tort law
for injury except that, based on fault, that person--
(1) may claim against any person covered by personal
protection insurance only for uncompensated economic loss; and
(2) may be claimed against by a person covered by personal
protection insurance only for uncompensated economic loss.
(b) Accidents Involving Persons With Personal Protection
Insurance.--
(1) Right to recover economic loss.--A person covered by a
personal protection insurance policy who is injured in an
accident is compensated under that policy only for economic
loss, without regard to fault.
(2) Right to sue for uncompensated economic loss based on
fault.--If a person who chooses personal protection insurance
is--
(A) involved in an accident with a person insured
under either the personal protection system or tort
maintenance system under section 5(a); and
(B) sustains uncompensated economic loss,
that person shall have the right to claim against the other
person involved in the accident for that loss based on fault.
(c) Accidents Involving Persons With Personal Protection Insurance
and Persons Who Are Unlawfully Uninsured.--
(1) In general.--A person covered by personal protection
insurance who is involved in an accident with an uninsured
motorist shall--
(A) be compensated under that insured person's
insurance policy for economic loss without regard to
fault; and
(B) have the right to claim against the uninsured
motorist for economic loss and for noneconomic loss
based on fault.
(2) Forfeiture of rights.--An uninsured motorist forfeits
the right to claim against a motorist who has chosen personal
protection insurance for--
(A) noneconomic loss; and
(B) economic loss in an amount up to the amount of
per-person bodily injury limits mandated by the
applicable State financial responsibility law.
(d) Accidents Involving Motorists Under the Influence of Alcohol or
Illegal Drugs or Engaging in Intentional Misconduct.--A person who is
insured under personal protection insurance shall have the right to
claim, and be subject to a claim, for--
(1) driving under the influence of alcohol or illegal drugs
(as those terms are defined under applicable State law); or
(2) intentional misconduct.
(e) Priority of Benefits.--A person who is insured under the
personal protection system or tort maintenance system under section
5(a) may only claim benefits under such coverage up to the limits
selected by or on behalf of such person in the following priority:
(1) The coverage under which the injured person was an
insured at the time of the accident.
(2) The coverage of a motor vehicle involved in the
accident, if the person injured was an occupant of, or was
struck as a pedestrian by, such motor vehicle at the time of
the accident, except that such person shall not recover under
the coverage of both paragraph (1) and this paragraph.
(f) Subrogation Rights.--A personal protection insurer is
subrogated, to the extent of the obligations of that insurer, to all of
the rights of the persons insured with personal protection insurance
issued by the insurer with respect to an accident caused in whole or in
part, as determined by applicable State law, by--
(1) the negligence of an uninsured motorist;
(2) operating a motor vehicle under the influence of
alcohol or illegal drugs;
(3) intentional misconduct; or
(4) any other person who is not affected by the limitations
on tort rights and liabilities under this Act.
(g) Rights of Lawfully Uninsured Persons.--Nothing in this Act
shall be construed to affect the tort rights of any person lawfully
uninsured under the terms of an applicable State law for insurance
under either the personal protection system or tort maintenance system
under section 5(a).
(h) Rights of Persons Occupying Motor Vehicles With Fewer Than 4
Load-Bearing Wheels.--Nothing in this Act shall be construed to affect
the tort rights of a person who occupies a motor vehicle with
fewer than 4 load-bearing wheels or an attachment thereto, unless an
applicable contract for personal protection insurance under which that
person is insured specifies otherwise. The preceding sentence applies
without regard to whether the person is otherwise legally insured for
personal protection insurance or tort maintenance coverage.
(i) Renewal or Cancellation.--An insurer shall not cancel, fail to
renew, or increase the premium of a person insured by the insurer
solely because that insured person or any other injured person made a
claim--
(1) for personal protection insurance benefits; or
(2) if there is no basis for ascribing fault to the insured
or one for whom the insured is vicariously liable, for tort
maintenance coverage.
(j) Immunity.--Unless an insurer or an insurance agent willfully
misrepresents the available choices or fraudulently induces the
election of one motor vehicle insurance system described in paragraph
(1) over the other, no insurer or insurance agent, employee of such
insurer or agent, insurance producer representing a motor vehicle
insurer, automobile residual market plan, or attorney licensed to
practice law within a State, shall be liable in an action for damages
on account of--
(1) an election of--
(A) the tort maintenance system under section 5(a);
or
(B) the personal protection system under section
5(a); or
(2) a failure to make a required election.
SEC. 7. RULES OF CONSTRUCTION.
Nothing in this Act shall be construed--
(1) to waive or affect any defense of sovereign immunity
asserted by any State under any law or by the United States;
(2) to affect the awarding of punitive damages under any
State law;
(3) to preempt State choice-of-law rules with respect to
claims brought by a foreign nation or a citizen of a foreign
nation;
(4) to affect the right of any court to transfer venue, to
apply the law of a foreign nation, or to dismiss a claim of a
foreign nation or of a citizen of a foreign nation on the
ground of inconvenient forum;
(5) subject to paragraph (1), to create or vest
jurisdiction in the district courts of the United States over
any motor vehicle accident liability or damages action subject
to this Act which is not otherwise properly in the United
States District Court;
(6) to prevent insurers and insureds from contracting to
limit recovery for lost wages and income under personal
protection coverage in such manner that only 60 percent or more
of lost wages or income is covered;
(7) to prevent an insurer from contracting with personal
protection insureds, as permitted by applicable State law, to
have submitted to arbitration any dispute with respect to
payment of personal protection benefits;
(8) to relieve a motorist of the obligations imposed by
applicable State law to purchase tort liability insurance for
bodily injury to protect third parties who are not affected by
the immunities under this Act;
(9) to preclude a State from enacting, for all motor
vehicle accident cases including cases covered by this Act, a
minimum dollar value for defined classes of cases involving
death or serious bodily injury;
(10) to preclude a State from providing that forms of
insurance other than those listed in section 5(b)(3) shall be
subtracted from personal protection insurance benefits
otherwise payable for injury;
(11) to preclude a State from enacting a law that--
(A) allows litigation by tort maintenance insureds
against personal protection insureds for economic and
noneconomic loss; and
(B) assures through a reallocation device that the
advantage of tort claim waivers by personal protection
insureds against tort maintenance insureds is reflected
in the premiums of personal protection insureds; or
(12) to alter or diminish the authority or obligation of
the Federal courts to construe the terms of this Act.
SEC. 8. APPLICABILITY TO STATES; CHOICE OF LAW; AND JURISDICTION.
(a) Election of Nonapplicability by States.--This Act shall not
apply with respect to a State if such State enacts a statute that--
(1) cites the authority of this subsection;
(2) declares the election of such State that this Act shall
not apply; and
(3) contains no other provision.
(b) Nonapplicability Based on State Finding.--
(1) In general.--This Act shall not apply with respect to a
State, if--
(A) the State official charged with jurisdiction
over insurance rates for motor vehicles makes a finding
that the statewide average motor vehicle premiums for
bodily injury insurance in effect immediately before
the effective date of this Act will not be reduced by
an average of at least 30 percent for persons choosing
personal protection insurance (without including in the
calculation for personal protection insureds any cost
for uninsured, underinsured, or medical payments
coverages);
(B) a finding described under subparagraph (A) is
supported by evidence adduced in a public hearing and
reviewable under the applicable State administrative
procedure law; and
(C) a finding described under subparagraph (A) and
any review of such finding under subparagraph (B)
occurs not later than 90 days after the date of
enactment of this Act.
(2) Comparison of bodily injury premiums.--For purposes of
making a comparison under paragraph (1)(A) of premiums for
personal protection insurance with preexisting premiums for
bodily injury insurance (in effect immediately before the date
of enactment of this Act), the preexisting bodily injury
insurance premiums shall include premiums for--
(A) bodily injury liability, uninsured and
underinsured motorists' liability, and medical payments
coverage; and
(B) if applicable, no-fault benefits under a no-
fault motor vehicle law or add-on law.
(c) Choice of Law.--In disputes between citizens of States that
elect nonapplicability under subsection (a) and citizens of States that
do not make such an election, ordinary choice of law principles shall
apply.
(d) Jurisdiction.--This Act shall not confer jurisdiction on the
district courts of the United States under section 1331 or 1337 of
title 28, United States Code.
(e) Statutes of Limitations.--Nothing in this Act shall supersede
an applicable State law that imposes a statute of limitations for
claims related to an injury caused by an accident, except that such
statute shall be tolled during the period wherein any personal
protection or tort maintenance benefits are paid.
SEC. 9. EFFECTIVE DATE.
This Act shall take effect 90 days after the date of enactment of
this Act.
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