Oakland County Circuit Court; Docket No. 77-156-693-CK; Unpublished
Judge Robert B. Webster; Written Opinion
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Reasonable Proof Standard [§3142(1)]
12% Interest Penalty on Overdue Benefits – Nature and Scope [§3142(2), (3)]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
In a written opinion, Judge Webster held that under the terms of §3142 of the No-Fault Act, a first party insurer is not liable to pay 12 percent interest on overdue benefits unless the insurer actually receives reasonable proof of the fact and the amount of the loss sustained. This is so, even in situations where the insurer denies all liability on the basis of a legal position. However, the issue of unreasonable refusal or delay of payment is not pertinent to requirements of §3142 relative to 12 percent interest.
