Assigned claims insurer granted reimbursement from vehicle's insurer
American Guarantee and Liability Insurance Company [AGLIC] refused to pay medical expenses incurred by Jake Williams, after he was allegedly ejected from his scooter while being transported for medical treatment. AGLIC and its insured, ENJOI Transportation Solutions made the incredible argument that its driver had properly restrained Williams and his scooter, that Williams' injury arose out of an intent to injure himself, and therefore the injuries did not "arise out of the use, ownership or maintenance of a motor vehicle."
After it was assigned the claim, Farm Bureau rejected this "defense" and paid the medical care providers. It filed a lawsuit against AGLIC, seeking reimbursement. The trial court granted Farm Bureau summary disposition and the balking insurer appealed to the Court of Appeals. The Court held that under the express language of the No Fault Act, AGLIC sacrificed its right to dispute the benefits when it refused to provide coverage and the case was assigned to Farm Bureau under the Assigned Claims Plan. In short, the statute does not allow insurer-created priority disputes to result in multiple determinations of the same issues. Farm Bureau was entitled to reimbursement of the claims it paid under the plan.