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Recent Appellate Decisions Dismantle Weapon Used by Insurers to Take Away No-Fault Benefits

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Since 2014, no-fault insurers have been using ruthless claim-denial tactics against people injured in motor vehicle accidents. One of those tactics commonly involves identifying statements that an insurer can acuse an insured of falsely making in the processing of a PIP claim. Insurers then use that allegedly-false statement to void the claimant’s entire underlying insurance policy. When successful, this tactic results in the termination of all auto no-fault PIP benefits, and for some, it also impairs the ability to pursue a liability claim. This tactic was widely used at unprecedented levels following the Michigan Court of Appeals decision of Bahri v. IDS...

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New Auto Liability Insurance Limits, New Complexities

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2020 was so dizzying that it is hard to keep track of the many changes in our lives. You are thus in good company if you did not notice that automobile liability insurance limits underwent a historic change, courtesy of the auto no-fault overhaul known as Public Acts 21 and 22. The Acts became law in 2019, but the most significant phase took effect on July 1, 2020. On that day, auto no-fault insurers could start issuing policies with limited no-fault PIP benefits. On that same day, auto insurers were required to issue new policies with substantially increased minimum liability requirements. New...

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