Citizens allowed to reduce PIP wage loss by amount of injured motorist's employer-funded long-term disability
Jack Darmer was badly hurt in a car wreck while working for General Motors. One of his employment benefits was a long-term disability policy, and his auto insurer, Citizens, claimed the right to deduct his LTD payments from his PIP wage loss payments. Darmer objected, claiming that Citizens did not give him the statutorily-required reduction in premiums that must be offered when a no fault insurer coordinates benefits.
This all happened between 2002 and 2005, when Citizens owed PIP wage loss benefits. After two decisions by the trial court denying Citizens the right to deduct, and two reversals by the Court of Appeals, the case is back before the lower court to determine whether "an appropriately reduced premium" was offered by Citizens to Mr. Darmer. The Court of Appeals held that the lower court judge did not have the right to consider whether Citizens had secured proper authorization for an appropriate reduction in premiums--the judge was limited, essentially, to confirming there was some reduction in premium.