What is An Assignment?

In Michigan, auto no-fault assignment refers to the process of assigning a patient’s right to receive no-fault insurance benefits to another party, such as a medical provider, like M & M Home Care. This allows M & M Home Care to directly bill the insurance company for the services provided to the injured person, without requiring the injured person to pay out-of-pocket or waiting for reimbursement from the insurance company.

Auto no-fault assignment can be made either by the patient or by the medical provider. However, the assignment must be in writing and signed by the assignor (the patient), and it must meet certain requirements under Michigan law.

Once an auto no-fault assignment has been made, the insurance company must pay the assigned benefits directly to the medical provider, up to the limits of the policy. The patient still has certain rights under the policy, such as the right to dispute a denial of benefits, but the insurance company will only communicate with the assignee (the medical provider) regarding the payment of benefits.

It is important to note that auto no-fault assignment is not the same as a release of liability. The claimant is still responsible for any outstanding balances owed to the medical provider, even if the insurance company has already paid the assigned benefits. Additionally, the assignor retains the right to sue the insurance company if they believe that they have been improperly denied benefits.