Insurer Moves For Summary Judgment Against Michigan Association

DETROIT - An automobile insurer has moved for summary judgment against the Michigan Catastrophic Claims Association, asserting that MCCA is obligated under Michigan's no-fault statute to pay personal injury protection losses paid in excess of the statutory limit. Old Republic Insurance Co. v. Michigan Catastrophic Claims Association, No. 2:08-cv-12533 (E.D. Mich.).

In its Jan. 20 motion filed in the U.S. District Court for the Eastern District of Michigan, Old Republic argues that MCCA may not exclude "fronting" policies from Michigan's reinsurance pool. If true fronting policies will never trigger MCCA indemnity, MCCA should not be allowed to collect premiums for …