Michigan Attorney General may join Detroit mayor in no-fault insurance lawsuit

No-fault insurance - car crash

AG Bill Schuette may back Mayor Mike Duggan in having the state system declared unconstitutional.

Michigan Attorney General Bill Schuette may step in to support Detroit Mayor Mike Duggan in the lawsuit to declare the no-fault insurance system in the state to be unconstitutional.

The Detroit Mayor filed the lawsuit about the auto insurance system in the state back in August.

Insurance Commissioner Patrick McPharlin said in a court filing earlier this week, that Schuette may build a “conflict wall” to other lawyers in his office to represent the state agency in Duggan’s lawsuit.

“While a final decision has not yet been made, the Attorney General may take a position supporting the Plaintiffs’ position in this case,” said the Attorney General in the auto insurance system lawsuit filing.

The mayor of Detroit filed his lawsuit against the Michigan Department of Insurance and Financial Services. The suit is seeking to declare the state’s no-fault insurance system to be unconstitutional. The reason is that the current system is forcing drivers to head out behind the wheel without auto insurance because they’re incapable of affording it.

Attorney General Schuette didn’t directly address the no-fault insurance system in the lawsuit.

The no-fault auto insurance system was not directly addressed by the attorney general. That said, Schuette that the Legislation would be wise to form an insurance fraud prevention authority, said an Insurance Business Mag report. This authority would help to address the high insurance costs in Massachusetts.

“The mayor of Detroit is right — auto insurance in Michigan has become unaffordable,” said the Attorney General. “It’s driving people away, it’s keeping businesses from wanting to locate here, it’s slowing the growth that we have had over the last eight years.”

Earlier last week, the Liss, Seder & Andrews PC law firm also filed a motion to have the lawsuit dismissed. That firm is currently representing six vehicle accident victims that have No-fault insurance - car crashbeen “catastrophically” injured, according to the media report. Moreover, that law firm feels that if the no-fault insurance law is eliminated, it would threaten their clients capability “to live in their family home as opposed to being institutionalized.”

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