I Saw The (As)Sign(ment): Michigan Court of Appeals Rules Anti-Assignment Provision in No Fault Policy is Unenforceable

The Michigan Court of Appeals tackled the hotly contested issue of the enforceability of anti-assignment clauses in insurance policies in the recently published opinion of Jawad Shah, M.D. P.C, et al v State Farm Mut Auto Ins Co, ____ Mich App ____ (2018), issued May 8, 2018. The ultimate holding in the case was that anti-assignment clauses are unenforceable with respect to medical providers once the services have been rendered.  Importantly, the Court also held that the one-year back rule would apply from the date of the execution of the assignment and any amended pleading to add a claim based on an assignment would not relate back to the date of filing the original Complaint.

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