STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 5479

April 5, 1979

NO FAULT AUTOMOBILE INSURANCE LAW:

Pro rata contribution from insurers of owners and operators in a multi-automobile accident

INSURANCE:

Pro rata contribution from insurers of owners and operators in a multi-automobile accident

MOTOR VEHICLES:

Pro rata contribution from insurers of owners and operators in a mult-automobile accident

Where, as a result of a mult-automobile accident, state property is damaged, the state may obtain compensation from the insurers of all of the owners or operators of vehicles involved in the accident or, in the alternative, file a claim with the insurer of the owner of the vehicle most conspicuously involved; that is, the vehicle causing the damage. However, if the owner of the vehicle is uninsured, the claim may be filed against the insurer of the operator of the vehicle.

John P. Woodford

Director

Department of Transportation

P.O. Box 30050

Lansing, Michigan 48909

You have requested my opinion as to the method of collection for damage to state property caused by vehicles insured under Michigan's no fault automobile insurance law. Your question is:

You indicate that in single automobile accident situations you have no difficulty obtaining payment of the damages. However, in the case of multi-automobile accidents where only one of the automobiles strikes the highway facility, some insurance carriers maintain that the Department of Transportation must seek damage adjustments from each carrier.

Briefly, the Michigan no fault automobile insurance law constitutes Chapter 31 of the Insurance Code of 1956, 1956 PA 218, Sec. 301 et seq, as added by 1972 PA 294, MCLA 500.3101 et seq; MSA 24.13101 et seq. Section 3121 of the Code, MCLA 500.3121; MSA 24.13121, provides that, under property protection insurance, '. . . an insurer is liable to pay benefits for accidental damage to tangible property arising out of the ownership, operation, maintenance or use of a motor vehicle . . .' The section also provides that property protection insurance benefits consist of the lesser of reasonable repair costs or replacement costs less depreciation and, where applicable, the value of loss of use. Section 3125 of the Code, MCLA 500.3125; MSA 24.13125, provides:

Section 3127 of the Code, MCLA 500.3127; MSA 24.13127, provides:

Section 3115(2) of the Code, MCLA 500.3115(2); MSA 24.13115(2), is pertinent to your question and provides:

Your specific question is whether the responsibility for collecting a pro rata from the insurers of other vehicles involved in the accident falls upon the Department of Transportation or upon the insurer of the vehicle which damages state property. Section 3115(2), supra, provides a statutory remedy for partial recoupment by an insurer from other insurers. Reading section 3125 in conjunction with section 3127 and section 3115(2) leads me to the conclusion that the party suffering property damage as a result of the accident may obtain compensation from the insurers of all of the owners or operators of vehicles involved in the accident or, in the alternative, file a claim with the insurer of the owner of the vehicle most conspicuously involved; that is, the vehicle causing the damage. However, if the owner of the vehicle is uninsured, the claim may be filed against the insurer of the operator of the vehicle.

The Michigan no fault insurance law does not contemplate that the person suffering the accidental property damage is required to untangle disputes between the various insurers. Section 3115(2) contains specific language which manifests the intent of the legislature that the insurer who processes the claim and pays the same be reimbursed by all other insurers liable under the law. If the person suffering the accidental property damage chooses to make claim upon the insurer of the vehicle causing the damage, it is incumbent upon that insurer to seek partial recoupment from the other insurers in the same order of priority. The statute grants an entitlement to recovery and further provides that this right includes a reasonable amount for partial recoupment for the expenses of processing the claim.

Moreover, the primary purposes of no fault auto insurance are to reduce litigation and to ease recovery. The statute provides absolute liability without regard to fault for damage to property such as the highway facilities in question. The statute also provides an appropriate division of that absolute liability and the means, as well as the right, to partial recoupment to assure an equitable distribution of the loss among the insurers of all involved vehicles.

Therefore, in response to your question, the Department of Transportation is not required to seek pro rata contribution for damages to state property from each of the insurance carriers involved. That responsibility falls upon the insurer with whom the original claim is filed by the Department.

Frank J. Kelley