Michigan Court of Appeals; Docket No. 77-3730; Published
Judges Cavanagh, Holbrook, and Kaufman; Per Curiam
Official Michigan Reporter Citation: 90 Mich App 687; Link to Opinion 
STATUTORY INDEXING:
Coordination with Other Health and Accident Disability Insurance [§3109a]
TOPICAL INDEXING:
Legislative Purpose and Intent
CASE SUMMARY:
In a per curiam Opinion, the Court of Appeals held that a first party no-fault insurer could not, pursuant to a "coordinated benefits" insurance policy provision, compel its insured to exhaust sick leave benefits available through the insured's employment before paying the insured PIP benefits under his no-fault policy. The plaintiff involved in this case was an employee of Wayne County who had accumulated sick time in proportion to the number of days worked. This sick leave could be accrued without limit and, if unused at retirement, death, or separation from employment, would result in a financial payment to the plaintiff.
The Court of Appeals held that even though such sick leave benefits are clearly encompassed in the contractual language used in the coordinated benefits provision of the no-fault policy, these sick leave benefits were not the type of insurance benefit contemplated by §3109a of the no-fault statute which sanctions such coordinated benefits provisions. The Court noted that this section of the statute permits coordination of benefits with respect to "other health and accident coverage on the insured." The Court stated that the use of the word "coverage" has a particular meaning in the field of insurance and is used to connote protection by an insurance policy. Accordingly, the Court felt that the Legislature intended §3109a to be limited to health and accident insurance coverage upon the insured.
