Court addresses priority issue where cab companies don't insure entire fleet
Titan Insurance Company sued American Country Insurance after Titan was tabbed to pay the PIP benefits for two different employee drivers who were injured while operating uninsured vehicles owned by limousine services that insured part of their fleet with American Country. Titan had been assigned both claims through the Assigned Claims Plan: it argued that as the insurer of other vehicles "owned" by the owner of the uninsured taxis, American Country should be the priority insurer under the no fault scheme.
American Country argued that the statute should be interpreted in a way that placed the burden of the illegally uninsured vehicles on the entire insurance industry (through the Assigned Claims Plan) rather than on a single insurer. Noting that to hold otherwise would read one section out of the statute, the Court of Appeals interpreted the poorly-designed statute to require the insurer of the owner's other vehicles to bear the normal PIP expenses of an uninsured vehicle.