High Court Decision Will Impact Policyholder Premiums

A decision by the Michigan Supreme Court recently that expands the ability to sue for "pain and suffering" will open the floodgates for lawsuits under Michigan's no-fault law resulting in higher premums for motorists.

The high court's decision in McCormick v Carrier changes the verbal threshold for "pain and suffering" awards under the state's no-fault system, allowing many more lawusits for less serious injuries -- signicantly increasing costs for policyholders. 

Currently, to recover "pain and suffering" awards in Michigan, a person must have suffered "death, serious impairment of body function" or "permanent, serious disfigurement."  The high court decision rewrites the standards for "serious impairment.  It will open the courts to additional litigation and seriously undermine the viability of the state's no-fault statute.

More lawsuits translates into increased costs for policyholders, according the Insurance Institute of Michigan.