Bronson Hospital denied PIP benefits from Progressive after treated "Named Excluded Driver."
Danielle Pillars owned a car but must have had a driving record so poor that she couldn't insure it at a reasonable price. Her fiance, Nicholas Owsiany insured the vehicle with Progressive Michigan Insurance Company. Apparently recognizing the manipulative behavior by PIllars and Owsiany, but eager to earn premiums without much risk, Progressive wrote the policy to exclude coverage whenever Pillars was the driver. As anticipated, Pillars then wrecked the car, suffered serious injuries, and was treated at Bronson Hospital.
Bronson sued to collect for the cost of Pillars' medical care, but the case was dismissed. Bronson argued that the situation created by Progressive--where it put an "insured" vehicle on the road legally with factually illusory insurance--was against public policy and that Progressive should owe PIP benefits. The Court examined various precedents and determined that it was not illegal for Progressive to insure Pillars' car, while excluding coverage if she operated it.