McKelvie v. Auto Club Ins. Ass'n

The majority’s holding effectively permits defendant to circumvent the Legislature’s intent in enacting MCL 500.3148(1); MSA 24.13148(1). That intent was to discourage insurance companies, so disposed, from unreasonably withholding personal protection insurance (pip) benefits from their insureds until ordered to pay them by a court. The discouragement was in the form of an award of attorney fees to insureds obliged to sue to recover pip benefits to which they were entitled. The penalty provision sought to force insurers to promptly pay their insureds. Beach v State Farm Mut Automobile Ins Co,…