M Civ JI 35.04 No-Fault First-Party Benefits Action: Statutory Interest

Plaintiff is entitled to 12 percent interest on any benefit you find overdue. Benefits are overdue if not paid within thirty days after reasonable proof of the fact and amount of the loss has been provided to the insurance company.* Plaintiff has the burden of proving that [ he / she ] provided reasonable proof of loss and that the defendant failed to pay the claim within thirty days. If reasonable proof is not supplied as to the entire claim, you shall award interest as to all benefits for which reasonable proof was supplied. Your verdict will be for plaintiff as to interest on those benefits for which [ he / she ] has met [ his / her ] burden of proof. Your verdict will be for the defendant as to interest on those benefits for which plaintiff failed to meet [ his / her ] burden of proof.

Note on Use

* MCL 500.3142(3) was added by 2019 PA 22. It provides that if a bill for the product, service, accommodations, or training was not provided to the insured within 90 days after the product, service, accommodations, or training is provided, the insurer has an additional 60 days to pay before the bill is considered overdue. In that situation, the instruction will need to be modified accordingly.

Comment

MCL 500.3142.

An award of interest on the judgment under MCL 600.6013 and 12 percent interest on overdue benefits is proper. Wood v Detroit Automobile Inter-Insurance Exchange, 413 Mich 573; 321 NW2d 653 (1982). An award of interest does not require proof of unreasonable conduct or bad faith on the part of the insurer. E.g., Cook v Detroit Automobile Inter-Insurance Exchange, 114 Mich App 53; 318 NW2d 476 (1981); Bach v State Farm Mutual Automobile Insurance Co, 137 Mich App 128; 357 NW2d 325 (1984), lv den, 421 Mich 862 (1985); Nash v Detroit Automobile Inter-Insurance Exchange, 120 Mich App 568; 327 NW2d 521 (1982), lv den, 417 Mich 1088 (1983).

Exemplary damages or damages for mental or emotional distress are not recoverable from a no-fault insurer if the claim is based solely on breach of contract for nonpayment of benefits. Liddell v Detroit Automobile Inter-Insurance Exchange, 102 Mich App 636; 302 NW2d 260 (1981); Jerome v Michigan Mutual Auto Insurance Co, 100 Mich App 685; 300 NW2d 371 (1980). See also Kewin v Massachusetts Mutual Life Insurance Co, 409 Mich 401; 295 NW2d 50 (1980).

History

M Civ JI 35.04 was added November 1980. Amended January 2020, October 2022.