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You Only Give What You Get: COA Affirms That Provider with Assignment Only has Rights Held by Assignor in PIP Claim (Pre-2019 No-Fault Reform)

Motor Vehicle Litigation / March 17, 2021

The Michigan Court of Appeals affirmed that a PIP medical provider with an assignment of rights executed by a PIP claimant lacks standing to bring a claim against the insurer after an arbitration agreement and/or dismissal with prejudice is entered into between the underlying parties.

In the context of no-fault law (pre-2019 amendments), a healthcare provider who obtains an assignment from an insured possesses whatever right the insured would have had to collect past due or presently due benefits from the insurer, and no more.

Insurers should note that amendments to the No-Fault Act enacted in 2019 gave providers an independent, statutory right to a cause of action against an insurer without the need for an assignment of rights from the insured.

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