Michigan Court of Appeals; Docket No 99487; Unpublished
Judges Sullivan, MacKenzie, and Schnelz; Unanimous; Per Curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Right of an Assigned Insurer to Receive Reimbursement from the Assigned Claims Facility [§3175(1)]
Interest Rate Liability for Payments Due [§3175(4)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals was called upon to interpret the interest provisions contained in the provisions of the No-Fault Act establishing the Assigned Claims Facility, §3172.
The trial court had determined that Allstate was obligated to pay plaintiff’s no-fault benefits, and ordered that Allstate also pay additional interest at the rate of 20% in accordance with §3175(4). On appeal, Allstate claimed that §3175(1) set the applicable rate of interest for reimbursement payments under the Assigned Claims Facility.
The Court held that §3175(1) was the applicable provision for establishing interest to be paid to insurers who pay benefits on behalf of the Assigned Claims Facility and who seek reimbursement for the benefits. The interest rate under §3175(1) is tied to the average 90-day T-Bill rate. The Court held that interest under §3175(4) (i.e., 20% per annum) applied only to payments "not paid by the due date," and was intended as a penalty provision to be assessed against a recalcitrant insurer that, after a circuit court determination on the matter, refuses to fulfill its obligations. Therefore, the trial court award of 20% interest was reversed.
