No Obligation to Pay PIP Benefits Prior to Application Or Direction By Insured

October 30, 2006

Michael Stevens of the Kentucky Law Blog recently posted an insightful look at the Court of Appeals recent unpublished decision in Neurodiagnostics, PSC v. Kentucky Farm Bureau Mutual Ins. Co., which clarified some of the confusion surrounding the assignment of PIP benefits. Michael begins by noting the “value” of PIP benefits and the “incentive” of health care providers to “race” to payment before discussing some “salient” points for the practitioner. He ends with a summary of the Court’s ruling, which holds that “reasonable proof of the fact and amount of loss realized” is not provided until a PIP application is submitted. Absent an application or direction by the insured, there is no obligation nor authority to pay PIP claims. Click on the headings for the link to Michael’s post and a PDF file of the case.

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