Bus(ted)! Government Vehicle Not Exempt Under MCL 500.3114(2)

In MIC General Ins Co v Michigan Municipal Risk Management Authority (MMRMA), unpublished opinion per curiam of the Court of Appeals, issued October 18, 2018 (Docket No. 341766), the Michigan Court of Appeals reversed the trial court by holding MMRMA was first in priority for payment of first party benefits and not exempt under MCL 500.3114(2)(c).

Government transportation providers, whose primary purpose is to transport passengers, are only exempt from liability to passengers for first party benefits if they are transporting individuals in buses. Transportation of passengers in non-bus vehicles would not trigger the exemption under 2(c) or (d) and the no-fault insurer for the non-bus vehicle would be in the highest order of priority.

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