Michigan Court Imperils $3 Billion in Rebates, Insurers Say (1)

Michigan insurers are stuck with the state’s high reimbursement costs because benefit caps passed through Michigan’s 2019 auto insurance overhaul are illegal when applied to existing injuries, the state’s high court ruled Monday.

Drivers and passengers injured prior to the overhaul’s enactment can’t have their lifetime guarantee for therapy truncated or ended by the new insurance scheme retroactively because that would violate the prior contracts, a divided court ruled.

The plaintiffs in the case were left permanantly disabled due to brain injuries received in crashes, and they received uncapped lifetime medical care covered by personal protection insurance. ...