Michigan Court of Appeals; Docket No. 48313; Published
Judges Cynar, Bashara, and Beasley; Unanimous
Official Michigan Reporter Citation: 105 Mich App 132; Link to Opinion 
STATUTORY INDEXING:
Organization and Maintenance of an Assigned Claims Facility and Plan [§3171]
Obligation of the Assigned Claims Facility to Make an Initial Determination of Claimant’s Eligibility [§3173a]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In a unanimous Opinion which affirms item number 248, the Court of Appeals, per Judge Cynar, held that the Secretary of State, in its capacity as administrator of the Assigned Claims Plan established under the No-Fault Act is not properly vested with the authority, pursuant to the rule making power granted under §3171, to promulgate a rule which empowers the Secretary of State to determine in the first instance the eligibility of claimants for basic PIP benefits under the Plan and to deny summarily obviously ineligible claims. Pursuant to §3171 the Secretary of State enacted Administrative Rule 8(2) which provides "An obviously ineligible claim received by the Assigned Claims Facility shall be denied summarily. The claimant shall be notified promptly in writing of the denial and the reasons therefore."
The Court held that Rule 8 is invalid. Under the guise of its rule making power, the Secretary of State had enlarged its authority regarding the Assigned Claims Facility and exceeded the scope of the powers granted it. By enacting Rule 8, the Secretary of State had "given itself a power different in character from that delegated to it by the legislature, by taking a grant of the legislative power and using it to give itself judicial power."
Under §3171 the Secretary of State has a duty to promptly assign claims. It does not have the power to evaluate claims. As a result, the defense of the statute of limitations or any other defense relating to the eligibility for PIP benefits is one for assertion by the no-fault inquirer to whom the claim is assigned, not by the Secretary of State.
