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No-Fault Act and Statutes

Michigan No-Fault Insurance Payees of Personal Injury Protection Benefits (PIP)

Lawyer Commentary on No-Fault Statute: MCL 500.3112

Payees of personal protection benefits; medical providers’ cause of action; payments as a discharge of insurer’s liability

No-Fault PIP benefits: Payees

This No-Fault statute provides that the people or “payees” to whom personal protection insurance or PIP benefits “are payable” may include:

  • The “injured person”
  • Someone who will accept the benefits payments “for the benefit of [the] injured person.”
  • A deceased person’s dependents.
  • Someone who will accept the benefits payments “for the benefit of [a deceased person’s] dependents.

Resolving doubt over No-Fault payees

If there is doubt and/or if there is dispute over whom the proper “payee” should be of the No-Fault benefits in question, then any or all of the following parties can “apply to the circuit court for an appropriate order”:

  • The person injured in the automobile accident who is claiming No-Fault insurance benefits.
  • The auto insurance company that is being asked to provide the claimed benefits.
  • Any dependents of a person who has been killed or suffered wrongful death in an accident.
  • “[A]ny other interested person.”

The court will designate “the proper person to receive the benefits” and/or “make an equitable apportionment . . . among the persons entitled to the benefits.”

Medical providers’ cause of action to recover No-Fault benefits

Significantly, this No-Fault statute permits a “health care provider” such as a hospital and/or doctor to “make a claim and assert a direct cause of action against an insurer” – through the Michigan Assigned Claims Plan – “to recover overdue benefits payable for charges for products, services, or accommodations provided to an injured person.”

Payment of No-Fault benefits is discharge of insurer’s liability

This statute defines when an insurance company’s payment of No-Fault benefits will allow the insurer to avoid future liability.

Specifically, the statute states:

“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 . . .”

The only exception to this rule that discharges an auto insurance company’s future liability to pay No-Fault benefits is if “the insurer has been notified in writing” that it must pay the benefits to “some other person.”

No-Fault Lawyers of Michigan Auto Law

The lawyers of Michigan Auto Law have been specializing in automobile No-Fault litigation for more than 50 years. If you have been injured in a car accident, truck accident or motorcycle accident and need help with your No-Fault insurance, please call one of our experienced 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.

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