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WOOD Radio Local News

 

Lawsuit challenges 'unconstitutional' no fault auto insurance reform law

Mason— A brain injury rehabilitation clinic and the guardians of two people injured in catastrophic crashes have filed suit against two insurance companies in an effort to declare unconstitutional the no-fault auto insurance reform that became law four months ago.

The lawsuit challenges two main parts of the reform that opponents argue are unconstitutional: the limitations on reimbursement for in-home attendant care services provided by family members and the fee schedule for reimbursement from auto insurance companies to medical providers, according to a statement from the Coalition Protecting Auto No-Fault, a prominent interest group involved in the no-fault auto insurance debate.

The suit contends the new law's limitations violate the plaintiffs' due process, equal protection and contract rights and asks the judge to prohibit the insurance companies from enforcing them. 

Filed Thursday against USAA Casualty Insurance Company and Citizens Insurance Company of America, the Ingham County lawsuit was assigned to Circuit Judge Wanda Stokes in Mason.

Calls to USAA and Citizens were not immediately returned. 

Stokes, a December appointee of Republican former Gov. Rick Snyder, initially was brought in by Snyder to oversee the cleanup of issues with Michigan's Unemployment Insurance Agency, which falsely accused thousands of people of fraud. 

Stokes also is a former general counsel at Ford Motor Co. and an attorney and director at Auto Owners Insurance Co., according to her biography on the Ingham County website. 

More information at DetroitNews.com.


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