STORY FROM: Reinsurance & Arbitration
Michigan Association Not Obligated To Pay Insurer, Judge Rules
October 7, 2009
DETROIT - The Michigan Catastrophic Claims Association is not obligated under Michigan's no-fault statute to reimburse an insurer for injury protection losses because the insurer did not pay a premium to the association, a Michigan federal judge has ruled. Old Republic Insurance Co. v. Michigan Catastrophic Claims Association, No. 2:08-cv-12533 (E.D. Mich.).
In a Sept. 29 order, Judge Denise P. Hood of the U.S. District Court for the Eastern District of Michigan did not reach the issue of first impression of whether MCCA is obligated to reimburse Old Republic for PIP benefits paid in excess of the statutory limit when ...