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Proof is in the Pudding: Court of Appeals Rules to Recover Payment for PIP Benefits, Provider Plaintiff Must Show Proof Defendant Notified in Writing of Claim or Assignment Prior to “Futures” Settlement

Motor Vehicle Litigation / July 27, 2020

Pursuant to MCL 500.3112, payment by an insurer in good faith of personal protection insurance benefits, to or for the benefit of a person who it believes is entitled to the benefits, discharges the insurer’s liability to the extent of the payments unless the insurer has been notified in writing of the claim of some other person.

In Physiatry and Rehab Associates v Mohammed Alhalemi and Westfield Ins Co, a published opinion of the COA, there was no proof that Plaintiff provided Defendant with a copy of the assignment of benefits before Defendant entered into the settlement agreement with underlying claimant Alhalemi. As such, Plaintiff provider could not file suit to recover no-fault benefits.

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