National No-Fault Motor Vehicle Insurance Act

(LATEST SUMMARY)

National No-Fault Motor Vehicle Insurance Act - =Title I: General Provisions= - Sets forth definitions of terms used in the Act. Requires every owner of a motor vehicle in a State to continuously provide in accordance with this Act with respect to that motor vehicle, while it is either present or registered in the State, security for the payment of basic restoration benefits and, at the option of the State, security for the payment of tort liabilities arising from maintenance or use of the motor vehicle. Specifies that security may be provided by a contract of insurance or by qualifying as a self-insurer.

Provides that the State commissioner of insurance shall establish or approve a plan assuring that liability insurance and basic reparation shall be available to each applicant for insurance who cannot obtain insurance through ordinary methods at rates not in excess of those applicable to applicants under the plan. Permits the plan to be by assignment of applicants among insurers, pooling, or other joint insuring or reinsuring arrangement.

Makes provisions for cancellation, refusal to renew, or other termination of insurance by an insurer.

States that basic and added reparation benefits are payable monthly as work loss, survivor's economic loss, or allowable expense is incurred. Allows a claim for basic or added benefits to be discharged by a settlement agreement for an agreed amount payable in installments or in a lump sum, if the reasonably anticipated net loss does not exceed $2,500.

Establishes a statute of limitations of two years from the time the loss occurred, or four years from the time of the accident, whichever is earlier. Provides for a statute of limitations for survivor's benefits of one year from the date of death or four years from the time of the accident, whichever is earlier.

Prohibits the assignment of rights for loss accruing in the future, as well as garnishment or execution. Provides for reasonable attorney's fees.

Allows restoration obligors providing basic restoration insurance in a State, or the State insurance commissioner in their absence, to organize an assigned claims bureau and an assigned claims plan, and adopt rules for their operation and for assessment of costs on a fair and equitable basis consistent with this Act.

Authorizes the commissioner to regulate reparation obligors, and to provide information to consumers about insurer's rates so that they may be able to compare them.

Establishes minimum liability insurance coverage required. Sets forth subrogation and indemnity rights of a restoration obligor.

Limits Federal jurisdiction in insurance claim proceedings to cases in which the United States is a party. Sets forth provisions governing injuries arising out of the use of a Federal motor vehicle where the claim is against the United States as a restoration obligor.

=Title II: National Standards for State No-Fault Motor Vehicle Insurance Plan= - Provides that by the completion of the first general legislative session commencing after the enactment of this Act, a State may establish a plan for no-fault motor vehicle insurance designed to meet or exceed the requirements established by this title. Authorizes the Secretary of Transportation to periodically review the laws and regulations of each State pertaining to no-fault motor vehicle insurance to determine whether or not they meet or exceed the requirements established by this title. Makes title III of this Act applicable if a State fails to adopt a plan for no-fault motor vehicle insurance within the time specified.

Authorizes the Secretary to provide grants to any State for the purpose of reimbursing such State for any governmental cost increases resulting from the implementation or administration of a no-fault plan in accordance with this Act. Authorizes the appropriation of not in excess of $10,000,000 for the Secretary to carry out his functions under this Act.

Sets forth requirements for State no-fault plans, and specifies the right of any person injured to basic restoration benefits in accordance with this Act.

Provides that, under any State no-fault motor vehicle insurance plan, tort liability arising out of the operation, maintenance, or use of a motor vehicle is abolished except as follows: (1) the liability of an owner of a motor vehicle involved in an accident who has not provided insurance or self-insurance covering the vehicle at the time of the accident: (2) the liability of a person in the business of designing, manufacturing, or repairing motor vehicles arising from a defect in a motor vehicle caused by an act or omission; (3) liability of a person for intentionally caused injury; (4) liability for damages for physical damage to property other than motor vehicles in use; and (5) intangible damages if the injured person dies or sustains permanent, significantly, incapacitating, loss of body function, permanent serious disfigurement, or an injury resulting in more than six months of complete inability of an injured person to work in his occupation.

Sets forth requirements of tort liability coverage and territorial coverage which an insurance policy must meet. Provides means of computing loss from an accident, and sets limits on amounts recoverable under a no-fault plan.

Specifies benefits that may be offered by insurers as optional added restoration coverages.

Disqualifies from receiving benefits the converter of a motor vehicle or a person intentionally causing injury to himself or another person.

=Title III: Alternative State No-Fault Motor Vehicle Insurance Plan= - Sets forth the requirements of a Federal alternative no-fault plan, to be applicable in a State not enacting a no-fault plan.

Provides that basic restoration benefits payable for work loss may not exceed $1,000 per month, and survivor's replacement services loss, and survivor's losses arising from injury to one person and attributable to the calendar week during which the accident causing injury occurs and to each calendar week thereafter may not exceed $200.

Makes similar provisions to those of title II with respect to the partial abolition of tort liability.

Allows optional added restoration coverage by insurers.