In Episode 22, Christian Huffman and Stacey King discuss the end of the priority war.
Two of the many changes in the No-Fault Act emerging from the amendments of June 11, 2019 (2019 PA 21 and 2019 PA 22) concerned priority of PIP coverage applicable to injuries sustained by non-contracting parties under Sec. 3114(4) and Sec. 3115, and also a new "cap" on coverage applicable to claims handled through the MACP. Whether either or both of these changes were to have immediate effect (as of June 11, 2019), became the center of a lengthy and complicated dispute between the Department of Insurance and Financial Services (“DIFS”) and the Michigan Automobile Insurance Placement Facility (“MAIPF”). Caught in the middle of the dispute for nearly two years, were Michigan’s policy-issuing no-fault insurance companies, whose claims were thrown into confusion by the uncertainty. By an agreement just recently finalized by DIFS and MAIPF, the disputes now have been resolved and order restored.
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