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Catastrophic Claims Fund loses dispute with Farm Bureau

Farm Bureau, one of Michigan's more litigious insurers, won a round today in its dispute with the No Fault Catastrophic Claims Association.  Farm Bureau insured a vehicle owned and operated by  Sally Ross when she suffered catastrophic injuries.  Ross's husband had coverage on a second vehicle through American International, and that coverage also applied to the spouse, but was secondary to her own coverage. Farm Bureau paid the first $250,000.00 of Ross's PIP benefits (essentially medical expenses) and then tendered the balance to the CAT fund.  The CAT fund argued that its obligation to pay did not commence until  Farm Bureau and American International had each paid $250,000.00 in PIP benefits.  Farm Bureau sued and the Court interpreted the language of the No Fault law to require the CAT fund to commence payment after Ross's policy had met the $250,000.00 threshold, without regard to the AI policy.

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