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Assignments in a Post-Covenant Era: Shah and Henry Ford Health Sys Reaffirmed

Motor Vehicle Litigation / February 28, 2019

While Omega Rehab Services, LLC is an unpublished opinion and therefore not binding authority, it further reaffirms the Court’s decisions in Shah and Henry Ford Health as to how the Court views the validity of assignments in a post-Covenant era. Anti-assignment clauses contained within an insurance policy will be deemed unenforceable and contrary to public policy to the extent that the language prohibits the right of a claimant to assign benefits after a loss of an accrued claim to payment. Furthermore, the Court affirmed that assignments do not violate the rule against splitting a cause of action.

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