Michigan No-Fault Law, section by section › MCL 500.3172
Conditions to obtaining personal protection insurance benefits through assigned claims plan; collection of unpaid benefits; application and reasonable proof of loss; payment of interest; reimbursement from defaulting insurers; reduction of benefits; definitions; effect of dispute between insurers; limitation on benefits.
In plain terms
A person injured in a Michigan motor vehicle accident may claim PIP through the assigned claims plan when no PIP applies, none can be identified, insurers dispute who must pay, or the only applicable insurer is insolvent. Claimants file an application and proof of loss with the MAIPF, benefits are reduced by other available sources (not Medicaid or Medicare), and PIP medical through the plan is limited to $250,000, or $2,000,000 for people who lost coverage during a qualified-health-coverage gap.
How this section works in practice
This section states who can use the assigned claims plan. A person injured in a Michigan motor vehicle accident may claim PIP through the plan when no PIP coverage applies to the injury, when applicable coverage cannot be identified (a hit-and-run by an unknown vehicle is the classic case), when two or more insurers dispute which of them must pay, or when the only applicable insurer is financially unable to pay. The claimant files an application with the Michigan Automobile Insurance Placement Facility and provides reasonable proof of loss; the facility must say in writing within 60 days what proof it requires.
The benefits are narrower than an ordinary policy. Subsection (5) reduces them by any other source available for the same loss, health insurance included (Medicaid and Medicare are not counted), and subsection (7) caps medical benefits at the $250,000 level of section 3107c(1)(b), or $2,000,000 for people who lost PIP medical during a qualified-health-coverage gap under sections 3107d and 3109a. Insurers that dispute priority among themselves must notify the facility, which assigns the claim so the injured person is paid while the insurers litigate the question in circuit court; the loser reimburses the facility with interest and attorney fees.
Text of MCL 500.3172
Sec. 3172.
(1) A person entitled to claim because of accidental bodily injury arising out of the ownership, operation, maintenance, or use of a motor vehicle as a motor vehicle in this state may claim personal protection insurance benefits through the assigned claims plan if any of the following apply:
(a) No personal protection insurance is applicable to the injury.
(b) No personal protection insurance applicable to the injury can be identified.
(c) No personal protection insurance applicable to the injury can be ascertained because of a dispute between 2 or more automobile insurers concerning their obligation to provide coverage or the equitable distribution of the loss.
(d) The only identifiable personal protection insurance applicable to the injury is, because of financial inability of 1 or more insurers to fulfill their obligations, inadequate to provide benefits up to the maximum prescribed.
(2) Unpaid benefits due or coming due as described in subsection (1) may be collected under the assigned claims plan, and the insurer to which the claim is assigned is entitled to reimbursement from the defaulting insurers to the extent of their financial responsibility.
(3) A person entitled to claim personal protection insurance benefits through the assigned claims plan under subsection (1) shall file a completed application on a claim form provided by the Michigan automobile insurance placement facility and provide reasonable proof of loss to the Michigan automobile insurance placement facility. The Michigan automobile insurance placement facility or an insurer assigned to administer a claim on behalf of the Michigan automobile insurance placement facility under the assigned claims plan shall specify in writing the materials that constitute a reasonable proof of loss within 60 days after receipt by the Michigan automobile insurance placement facility of an application that complies with this subsection.
(4) The Michigan automobile insurance placement facility or an insurer assigned to administer a claim on behalf of the Michigan automobile insurance placement facility under the assigned claims plan is not required to pay interest in connection with a claim for any period of time during which the claim is reasonably in dispute.
(5) Except as otherwise provided in this subsection, personal protection insurance benefits, including benefits arising from accidents occurring before March 29, 1985, payable through the assigned claims plan must be reduced to the extent that benefits covering the same loss are available from other sources, regardless of the nature or number of benefit sources available and regardless of the nature or form of the benefits, to a person claiming personal protection insurance benefits through the assigned claims plan. This subsection only applies if the personal protection insurance benefits are payable through the assigned claims plan under subsection (1)(a), (b), or (d). As used in this subsection, "sources" and "benefit sources" do not include the program for medical assistance for the medically indigent under the social welfare act, 1939 PA 280, MCL 400.1 to 400.119b, or health insurance for the aged and disabled under subchapter XVIII of the social security act, 42 USC 1395 to 1395lll.
(6) If the obligation to provide personal protection insurance benefits cannot be ascertained because of a dispute between 2 or more automobile insurers concerning their obligation to provide coverage or the equitable distribution of the loss, and if a method of voluntary payment of benefits cannot be agreed upon among or between the disputing insurers, all of the following apply:
(a) The insurers who are parties to the dispute shall, or the claimant may, immediately notify the Michigan automobile insurance placement facility of their inability to determine their statutory obligations.
(b) The Michigan automobile insurance placement facility shall assign the claim to an insurer and the insurer shall immediately provide personal protection insurance benefits to the claimant or claimants entitled to benefits.
(c) The insurer assigned the claim by the Michigan automobile insurance placement facility shall immediately commence an action on behalf of the Michigan automobile insurance placement facility in circuit court to declare the rights and duties of any interested party.
(d) The insurer to whom the claim is assigned shall join as parties defendant to the action commenced under subdivision (c) each insurer disputing either the obligation to provide personal protection insurance benefits or the equitable distribution of the loss among the insurers.
(e) The circuit court shall declare the rights and duties of any interested party whether or not other relief is sought or could be granted.
(f) After hearing the action, the circuit court shall determine the insurer or insurers, if any, obligated to provide the applicable personal protection insurance benefits and the equitable distribution, if any, among the insurers obligated, and shall order reimbursement to the Michigan automobile insurance placement facility from the insurer or insurers to the extent of the responsibility as determined by the court. The reimbursement ordered under this subdivision must include all benefits and costs paid or incurred by the Michigan automobile insurance placement facility and all benefits and costs paid or incurred by insurers determined not to be obligated to provide applicable personal protection insurance benefits, including incurred attorney fees and interest at the rate prescribed in section 3175 applicable on December 31 of the year preceding the determination of the circuit court.
(7) The Michigan automobile insurance placement facility and the insurer to whom a claim is assigned by the Michigan automobile insurance placement facility are only required to provide personal protection insurance benefits under section 3107(1)(a) up to whichever of the following is applicable:
(a) Unless subdivision (b) applies, the limit provided in section 3107c(1)(b).
(b) If the person is entitled to claim benefits under the assigned claims plan under section 3107d(6)(c) or 3109a(2)(d)(ii), $2,000,000.00.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 1972, Act 345, Imd. Eff. Jan. 9, 1973 ;-- Am. 1984, Act 426, Eff. Mar. 29, 1985 ;-- Am. 2012, Act 204, Eff. Sept. 1, 2012 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019
Source: MCL 500.3172 at legislature.mi.gov (official text). Text as published in the 2025 Michigan Compiled Laws; reviewed by Koussan Law on September 15, 2026.
Sections this one refers to
- MCL 500.3175: Assignment, Reimbursement and Recovery
- MCL 500.3107: What PIP Pays: Medical, Wage Loss, Services
- MCL 500.3107c: Choosing a PIP Medical Coverage Level
- MCL 500.3107d: Opting Out of PIP Medical With Medicare
- MCL 500.3109a: Coordinated PIP and Health Insurance
Sections that refer to this one
- MCL 500.3171: The Assigned Claims Plan and the MAIPF
- MCL 500.3173a: MAIPF Eligibility, Cooperation and Fraud
Practice pages
Important: This is not legal advice
This article is general information about Michigan personal injury law. It is not legal advice and should not be relied on as a substitute for consultation with a licensed Michigan attorney about your specific situation. The laws, deadlines, procedures, and frameworks here are general guidelines that may or may not apply to your case.
Every personal injury case turns on its own unique facts. The timing, the parties, the evidence, the jurisdiction, the insurance available, and dozens of other variables can change the legal analysis. Do not rely on anything written on this website to make decisions about your case.
If you have been injured in Michigan, the only responsible step is to speak with a licensed Michigan attorney about your specific facts. Call Koussan Law at (313) 800-0000 for a free consultation, or contact a different Michigan personal injury attorney of your choosing.
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