Great Lakes American Life Insurance v. Citizens Insurance

This case raises the following important issue: Does § 3116 of the no-fault act, MCL 500.3116; MSA 24.13116, preclude a health or disability insurer who has paid no-fault personal protection insurance benefits (pip) on behalf of its insured from enforcing its contractual subrogation rights to such no-fault pip benefits against its insured’s nonduplicative, third-party tort recovery?

We answer in the affirmative and hold that under those circumstances, § 3116 of the no-fault act bars enforcement of such subrogation clauses.

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On May 2, 1989, defendant Cruz Paiz was involved in a serious accident…