Michigan Court of Appeals; Docket Nos. 58604 and 5878; Published
Judges Danhof, Kaufinan, and Riley; Unanimous
Official Michigan Reporter Citation: 121 Mich App 761; Link to Opinion 
STATUTORY INDEXING:
Obligations of Admitted Insurers to Pay PIP Benefits on Behalf of Nonresidents Injured in Michigan [§3163(1)]
Rights And Immunities Applicable to Nonresident Claimants and Foreign Insurers [§3163(3)]
When Claimants Can Receive PIP Benefits Through the Assigned Claims Facility [§3172(1)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In this unanimous Opinion by Chief Judge Danhof dealing with the foreign insurer provisions of §3163 of the Act, the Court of Appeals ruled that the insurance company of an Ohio vehicle which was stolen in Ohio and driven into Michigan, causing injury to a bicyclist in Michigan, was not obligated to pay no-fault benefits to the injured bicyclist. The liability for payment of no-fault benefits in this situation rests with the Michigan insurance company which had been assigned the claim by the Assigned Claims Facility pursuant to §3171. The Court noted that the liability of an out of state insurer is governed by §3163. Citing the Supreme Court's opinion in Mills v Auto-Owners, item number 536, the Court stated, "This section only permits the imposition of liability on the out of state resident's insurer when the accident arises out of the ownership, operation, maintenance or use of the motor vehicle by a person 'insured' by the out of state insurer." The policy in this case was issued to the Ohio resident and not to the thief. Thus, the thief was not insured under the foreign insurer's policy. Furthermore, the use of the automobile by the thief cannot be considered to be identified with the normal ownership of the vehicle by the Ohio insured. Thus, there was an insufficient causal connection between the thiefs use of the vehicle and the Ohio resident's ownership thereof to impose liability on the foreign insurer.
