Who Has to Buy Auto Insurance Under Michigan's No-Fault Act?
MCL 500.3101(1): “The owner or registrant of a motor vehicle required to be registered in this state shall maintain….”
How is "Motor Vehicle" Defined Under Michigan's No-Fault Act?
MCL 500.3101(2)(e): “”Motor vehicle means a vehicle, including a trailer, operated or designed for operation upon a public highway by power other than muscular power which has more than 2 wheels”
Who is Considered an "Owner" Under Michigan's No-Fault Act?
MCL 500.3101(2)(h) provides for 3 classes of owners:
Constructive Owners
Having use of vehicle for period of more than 30 days
Nature of use has to be proprietary, consistent with ownership
Title Holders
Lessees
MOTORCYCLES - titleholders only!
What is Covered Under Michigan's No-Fault Act?
MCL 500.3105: “accidental bodily injury arising out of the ownership, operation, maintenance or use of a motor vehicle as a motor vehicle”
Must be accidental - CANNOT be intentional act
Must have suffered "Bodily Injury" - "sustained in a single accident having a temporal and spatial location"
Must be "as a motor vehicle" - Must be more than "but for, incidental or fortuitous"
Can You Be Disqualified From Coverage Under Michigan's No-Fault Act?
You can be disqualified from coverage for any of the following reasons:
Unlawfully taken/stolen vehicle
Owned uninsured vehicle
WARNING: SEE CONSTRUCTIVE OWNERSHIP!
Non-Resident occupant of unregistered vehicle
How to Determine Who is the "Highest Priority" Insurer?
GENERAL RULE:
(1) CLAIM FROM OWN INSURER OR SPOUSE OR RESIDENT RELATIVE;
(2) Owners or registrants of motor vehicles involved in accident;
(3) Insurers of operators of motor vehicles involved in accident;
MOTORCYCLES:
First look to owner of motor vehicle involved;
Then to operator of motor vehicle
Non Occupant/Pedestrian?
First look to their own or spouse or resident relative;
Only if none available do they look to operator of vehicle
ONLY TIME YOU CLAIM FROM CAR THAT HIT YOU: IF YOU DON'T HAVE INSURANCE, OR IF ON MOTORCYCLE
Occupants NEVER claim from insurers of other vehicles
Motorcycles ALWAYS claim from insurers of other vehicles
Non occupants MAY claim from insurers of other vehicles
Who is a Resident Relative?
Domicile vs. Residence
Factors:
Subjective Intent
Relationship to Others in House
Etc.
Common Issues:
Roommates
College
Divorced Parents
Military Personnel
What is Michigan's Assigned Claims Facility (ACF)?
MCL 500.3172(1): "If there is no identifiable insurance"
Ex. Homeless person, no car/no insurance, hit and run and can't identify insurer - go to assigned claim facility
Ex. Pedestrian doesn't own car, lives in house without insured car, hit and run driver
Ex. Uninsured pedestrian hit by 2 cars - one insured by aaa, one uninsured - who pays? AAA
If you Qualify for Michigan's Assigned Claims Facility:
Must sue the ACF
Pursuant to MCL 500.3172(3) you have two (2) years to bring the claim
What Benefits are Available Under Michigan's No-Fault Act?
MCL 500.3107 provides for: “all reasonable charges incurred for reasonably necessary products, services, & accommodations for an injured person’s care, recovery, or rehabilitation”
Allowable Expenses
Medical Expenses
Attendant Care
Wage Loss
What does that mean?
Obvious things: ambulance, hospital bills, etc.
BUT ALSO:
Modification to Van
Home Modifications
Family Provided Attendant Care
WATCH OUT!
Must be "incurred"
So it can't be just a favor
So make sure you make a deal to pay the person, it's YOUR RIGHT in Michigan!
What is Covered By Work Loss in Michigan's No-Fault Act?
3 year limit
Taxes are not deducted
No-Fault only pays 85%
Income earned during period of disability will be subtracted
Does not cover lost earning capacity, only if you would have earned that amount actually
Temporary Unemployment
Must prove active search for work - proof not permanent unemployment
What is Covered by Replacement Services in Michigan's No-Fault Act?
Limited to $20 a day for three (3) years
"Incurred" requirement
Can't just be a friendly gift
What is Covered by Survivor's Loss in Michigan's No-Fault Act?
Much broader than work loss
Taxes must be deducted
Personal consumption factor not deducted
What is the Statute of Limitations Under Michigan's No-Fault Act?
One Year Notice Requirement
Must notify insurer within one-year of accident of claim
Then you have right to make claim forever!!!
One year back rule
"...the claimant may not recover benefits for any portion of the loss incurred more than one year before the date of on which the action was commenced."
KEY - MATTERS WHEN SUIT WAS FILED, NOT WHEN NOTICE GIVEN TO INSURER
So first, you notify the insurer of the claim and hopefully they pay, and you can keep submitting forever until they decline -- then if they decline at any point in your life, while you are still injured from the motor vehicle accident, you have one year from that date to file suit to contest their decision.
Pain and Suffering and Excess Economic Damages Under Michigan's No-Fault Act:
Need to have suffered:
Death
Permanent serious disfigurement
Serious impairment of important body function
Typically a jury question, but gate-keeping function by court
Excess economic includes damages beyond three (3) years for work loss, and other limits under regular no-fault
But to get these extra benefits you must be less than 50% at fault!