Geico Insurance Company is our clients no-fault insurance company and insured her motorcycle at the time she was involved in a motorcycle with car accident in Muskegon. She suffered multiple injuries in the accident and is entitled to receive no-fault insurance benefits through Geico. These include payment of medical expenses, lost wages, attendant care services, and other benfits.
Geico improperly terminated some of her benefits and refused to pay them. We filed a lawsuit on her behalf in the Wayne County Circuit to compel payment of those benefits. Geico then wrote a letter to her medical providers advising them that it would no longer pay her medical benefits because a lawsuit had been filed. This action is improper and violates the Michigan no-fault insurance statute because the insurance company has cut off benefits that were not in dispute. Essentially, Geico has terminated our client's medical expenses because she filed suit seeking payment of other expenses.
The judge in this case will be requested to impose severe sanctions on Geico as a result of this unlawful refusal to pay benefits. This may include payment of attorneys fees and interest for this illegal action. It is important that the judge impose serious sanctions to deter Geico from treating other claimants illegally and improperly.