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Old Law, New Precedent: Court of Appeals Invalidates Non-Assignment Clauses and Clarifies the "One-Year-Back Rule"

May, 2018

The Michigan Court of Appeals ruled in favor of providers seeking payment of medical expenses under the No-Fault Act.  The Court cited precedent from 1880 in holding that non-assignability clauses are invalidated once a loss has been incurred.  A silver lining for insurers is that the Court also tied the “one-year-back” rule found in MCL 500.3145(1) to the date of the assignment, and any costs incurred more than one year before that date are barred from recovery.

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