Auto-Owners hit with nearly $20,000 in penalty interest and attorney fees for dragging its feet on no-fault claim payments.
The Michigan Court of Appeals handed down the decision on February 18, affirming a lower court ruling that the insurer unreasonably delayed payments on medical bills from a motorcycle accident victim’s treatment at Spectrum Health facilities.
The case offers a pointed reminder to claims adjusters about the strict timelines governing Michigan’s no-fault system. Insurers get 30 days to pay after receiving reasonable proof of loss. No extensions for additional investigation, no matter how thorough the company wants to be…