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Ordinary Allowable Expenses Redefined

Motor Vehicle Litigation / August 17, 2020

Loiola provides necessary guidance into what is deemed to be an ordinary “allowable expense” under the No-Fault Act.

Admire’s distinction of a “combined” product or accommodation and an “integrated” product or accommodation makes it easier for insurance companies to assess the potential for compensation of these expenses.

When analyzing whether something is an allowable expense, courts will look to whether a factfinder can “easily identify which costs are of a new character and are thus for the injured person’s care, recovery, or rehabilitation and which costs are ordinary, everyday expenses that are unchanged after the accident.” This will assist insurance companies in combatting any non-traditional expenses.

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