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Put it in Reverse: MAIPF Agrees That 2019 Changes to Order of Priority Took Immediate Effect

Motor Vehicle Litigation / January 6, 2021

The amendments to the No-Fault Act, brought about by 2019 PA 21, changed the order of priority for pedestrians and certain occupants of non-commercial motor vehicles.

Specifically, changes to MCL 500.3114(4) and MCL 500.3115 direct certain claimants to the “assigned claims plan” who would have previously looked to the insurer of the involved motor vehicle for their PIP benefits.

 Although 2019 PA 21 states that it has “immediate effect,” on September 20, 2019 the Department of Insurance and Financial Services (“DIFS”) announced, through Order 19-048M, that insurers could not rely upon the new order of priority until they revised their policy forms.

 The MAIPF initially adopted DIFS’s position. However, last month the MAIPF reversed course and formally acknowledged that the new statutory order of priority took effect immediately.

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