In an article published in Oakland County Legal News, Segal McCambridge Shareholder Stephanie Strycharz and Senior Associate Christopher Best explain the impact of the recent Michigan Court decisions have on the No-Fault Act. Despite revisions to state statutes, the No-Fault Act in effect at the time of an accident governs procedures an injured party may take against an insurance company. This recent ruling applies to automobile accidents that took place before 2019 when the No-Fault Act was amended.
“In Covenant, the Michigan Supreme Court held that a medical provider did not have an independent cause of action against an insurance company for no-fault benefits it provided to its underlying patient," the authors wrote. "Therefore, under the prior no-fault act that was in place before the June 11, 2019 amendments, the only way a medical provider had standing to maintain an independent cause of action against an insurance company was if they received an assignment of rights from its patient."
"For automobile accidents that occurred prior to the no-fault amendments taking effect on June 11, 2019, providers must obtain an assignment and without it they have no standing to sue an insurance company under Covenant," share Best and Strycharz. "For automobile accidents that occurred prior to June 11, 2019, insurance companies should always ask for an assignment from a medical provider when they submit a bill and medical providers should always obtain an assignment."
Read the story in full, click here.