Michigan No Fault Law: Persons Not Motor Vehicles Determine Which Insurer Owes PIP Coverage

The only thing worse than having no insurance to cover a motor vehicle loss is when you have competing insurance policies potentially covering the same claim. This litigation involved an order of priority dispute between two Michigan no fault insurers. One of the insurers wanted to negate coverage by arguing that its policy was a “commercial” policy. The commercial policy purported to be applicable only for accidents arising from the ownership, operation, or maintenance of the vehicles insured by the policy; i.e., covered autos. The vehicle involved in the accident was not a covered auto under the commercial policy.

The Michigan Court of Appeals decision in MemberSelect Ins. Co. v Hartford Accident & Indemnity Co deemed Hartford’s labeling of its policy as a “commercial” policy to be legally insignificant in determining whether it owed Michigan no-fault PIP benefits to the injured party (McGilligan) because he was a named insured under Hartford’s “commercial” auto policy. MemberSelect insured the owner of the vehicle occupied by McGilligan at the time of the MVA. MemberSelect would not ordinarily have been first in the order of priority for payment of PIP. MemberSelect paid the PIP claims and sought to be reimbursed by Hartford.

MCL §500.3114 provides that a PIP policy “applies to accidental bodily injury to the person named in the policy.” The no-fault law does not carve out a “commercial” policy exception to this rule. McGilligan was the named insured under Hartford’s “commercial” no-fault policy. Thus, Hartford was deemed to be responsible for reimbursing MemberSelect for the PIP benefits paid to the claimant.

Click on the link to read the Michigan Court of Appeals opinion in the case MemberSelect Ins. Co. v Hartford Accident & Indemnity Co.

About Alexander & Angelas, P.C.

Alexander & Angelas, P.C. represents defendants in civil liability litigation across Michigan and Northern Ohio. The firm’s practice areas include insurance defense litigation, premises liability, motor carrier (trucking) defense, corporate and commercial litigation, construction defect litigation, auto negligence, insurance coverage disputes, emergency casualty response services, alternative dispute resolution, subrogation claims, workers’ compensation, employment law, and liquor liability.

Attorneys practice in all state and federal courts in Michigan, including Wayne County (Detroit), Macomb County (Mount Clemens), Oakland County (Pontiac), Washtenaw County (Ann Arbor), and Genesee County (Flint). Legal services are also provided in Northern Ohio. Since its founding in 1992, the firm has litigated over 4,000 civil cases.

A 24/7 Emergency Hotline is available (800-219-0007) for trucking and insurance company clients. When an accident requires an immediate response to protect evidence, members of the firm quickly launch an investigation with the assistance of well-qualified accident investigators, crash re-constructionists, mechanical engineers, civil evidence photographers, and independent adjusters positioned throughout Michigan and Northern Ohio. 

Contact partner Peter Angelas to discuss a potential matter.