Assignment of rights void
A right to future no-fault benefits cannot be transferred to another individual for any reason. For example, a person who is injured in a motor vehicle accident cannot promise to give his future no-fault benefits to another person because these future rights cannot be sold or transferred. A person is not prohibited, however, from assigning no-fault benefits received in the past.
For example, in one Michigan case, it was held that when a car accident victim signs a document promising to turn over no-fault benefits that have not yet been received, the document is void. Aetna Casualty v. Starkey (1998). However, in another case, a court explained that it is acceptable for an injured individual to assign no-fault benefits that were previously owed to a medical provider. Professional Rehabilitation Associates, as Assignee of Clifford Lay v. State Farm (1998).
This statute does not prevent a lawyer for a no-fault claimant to negotiate an amount for no-fault benefits that may be owed into the future with the insurance company responsible for payment. Insurance companies in Michigan may sometimes seek to pay a present lump sum amount of no-fault benefits, at a discount to what those no fault benefits might otherwise accrue to be over time.
The lawyers at Michigan Auto Law strongly discourage that any such “futures” be negotiated or settled with a no-fault insurance company for an auto accident victim who has suffered traumatic brain injuries or spinal cord injuries.
The lawyers of Michigan Auto Law have been specializing in auto no-fault litigation for more than 50 years. If you have been injured in a car, truck or motorcycle accident and are having trouble with your no-fault insurance company, please call one of our expert attorneys for a free case evaluation at (800) 777-0028 or fill out our consultation form. There is no fee or obligation.
We are here to help you.