Michigan Automobile Insurance Placement Facility
Lawyer Commentary on No-Fault Statute: MCL 500.3171-3178
Assigned Claims Plan & Michigan Automobile Insurance Placement Facility (Formerly known as the Michigan Assigned Claims Facility)
The state of Michigan provides a safety net of insurance coverage for No-Fault (PIP) benefits in situations where a person is involved in a car accident, but there is no insurance company available to provide No-Fault benefits.
This safety net is called the “Michigan Assigned Claims Plan” (MACP). It is administered by the Michigan Automobile Insurance Placement Facility (MAIPF), which was formerly known as the Michigan Assigned Claims Facility. The Michigan Automobile Insurance Placement Facility (MAIPF) is considered the insurance company of last resort.
Among its duties in administering the Assigned Claims Plan, the Michigan Automobile Insurance Placement Facility (MAIPF) creates the procedures for ensuring that Michigan No-Fault benefits are provided to uninsured auto accident victims.
It is important to note that the Assigned Claims Plan (and, thus, the Michigan Automobile Insurance Placement Facility), does not apply to a person driving his or her own “uninsured” vehicle.
Instead, the Assigned Claims Plan helps car accident victims who don’t have No-Fault auto insurance of their own and are not otherwise covered by a No-Fault insurance policy – such as through an insurance company of higher priority and/or a policy in which a spouse or resident relative is a named insured. In those situations, the Assigned Claims Plan will “assign” a Michigan auto insurance company to pay for and provide No-Fault benefits to the “uninsured” person.
How does a person apply for No-Fault benefits through the Michigan Assigned Claims Plan?
In order to claim benefits from the MACP/MAIPF, an injured person must first complete and file an application for benefits. Because of the importance of the application and the pressing need for accuracy and completeness, it is advised that a car accident victim ask an attorney to review his or her application before filing it.
Within sixty (60) days of receiving an application for No-Fault benefits, the MACP/MAIPF or an auto insurance company assigned to handle the claim “shall specify in writing the materials” that a person claiming benefits must provide to demonstrate “a reasonable proof of loss.”
When does the Michigan Assigned Claims Plan provide No-Fault benefits?
One example of when the MACP gets involved to provide No-Fault benefits is when a pedestrian who does not own a car or have auto insurance and who lives alone is struck by a hit-and-run driver or a driver who is uninsured. Here, there is no PIP coverage that applies, as the injured pedestrian does not own a car or have auto insurance, and does not live with a resident relative who has auto insurance. Therefore, the injured pedestrian would submit an application for No-Fault benefits to the Michigan Automobile Insurance Placement Facility (MAIPF), which will assign the injured pedestrian’s claim to a No-Fault insurer for payment of PIP benefits.
Another example of when the MACP/MAIPF gets involved is when disputes arise between auto insurance companies as to which one is the highest priority and, thus, is obligated to pay No-Fault benefits on a car accident victim’s claim. The MACP/MAIPF will serve as a “mediator” of sorts in these priority disputes among insurers. While the dispute is being resolved, the victim can file a claim for No-Fault benefits with the MACP and receive immediate No-Fault coverage. Eventually, the plan and the assigned insurer will be reimbursed by the auto insurance company that is, ultimately, determined to be liable for the No-Fault claim. Importantly, those making a claim must still provide proper notice to the Michigan Automobile Insurance Placement Facility (MAIPF) and make timely submissions of proof of incurred benefits.