Suit Challenges Michigan Regulator Over $250,000 Benefit Cap

From the Associated Press — The administrator of a plan that covers the medical expenses of uninsured non-drivers who are injured in car crashes sued a top Michigan regulator, alleging that her recent orders conflict with an auto insurance overhaul. The lawsuit was filed Monday in the Court of Claims by the Michigan Automobile Insurance Placement Facility. The organization is run by insurers and administers the Michigan Assigned Claims Plan, which provides medical benefits for passengers and pedestrians who are injured in accidents and have no auto insurance. The suit accuses the state Department of Insurance and Financial Services and its director, Anita Fox, of forcing the plan to violate the law by not implementing a new $250,000 cap on benefits until July 2020. The suit says the limit took immediate effect this past June.