THE INSURANCE CODE OF 1956
Act 218 of 1956
500.3177 Recovery by insurer of benefits and costs from owner or registrant of uninsured motor vehicle; written agreement to pay judgment in installments; notice.
Sec. 3177.
(1) The insurer obligated to pay personal protection insurance benefits for accidental bodily injury to a person arising out of the ownership, maintenance, or use of an uninsured motor vehicle as a motor vehicle may recover all benefits paid, incurred loss adjustment costs and expenses, and incurred attorney fees from the owner or registrant of the uninsured motor vehicle or from his or her estate. Failure of the owner or registrant to make payment within 30 days after a judgment is entered in an action for recovery under this subsection is a ground for suspension or revocation of his or her motor vehicle registration and license as defined in section 25 of the Michigan vehicle code, 1949 PA 300, MCL 257.25. For purposes of this section, an uninsured motor vehicle is a motor vehicle with respect to which security as required by sections 3101(1) and 3102 is not in effect at the time of the accident.
(2) The Michigan automobile insurance placement facility may make a written agreement with the owner or registrant of an uninsured vehicle or his or her estate permitting the payment of a judgment described in subsection (1) in installments payable to the Michigan automobile insurance placement facility. The motor vehicle registration and license of an owner or registrant who makes a written agreement under this subsection must not be suspended or revoked and, if already suspended or revoked under subsection (1), must be restored if the payment of any installments is not in default.
(3) The secretary of state, on receipt of a certified abstract of court record of a judgment described in subsection (1) or notice from an insurer or the Michigan automobile insurance placement facility or its designee of an acknowledgment of a debt described in subsection (1), shall notify the owner or registrant of the provisions of subsection (1) at the owner or registrant's last address recorded with the secretary of state and inform the owner or registrant of the right to enter into a written agreement under this section with the Michigan automobile insurance placement facility or its designee for the payment of the judgment or debt in installments.
(4) Expenses for the suspension, revocation, or reinstatement of a motor vehicle registration or license under this section are the responsibility of the owner or registrant or of his or her estate. An owner or registrant whose registration or license is suspended under this section shall pay any reinstatement fee as required under section 320e of the Michigan vehicle code, 1949 PA 300, MCL 257.320e.
History: Add. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 1984, Act 426, Eff. Mar. 29, 1985 ;-- Am. 2019, Act 21, Imd. Eff. June 11, 2019
PopularName Notes:
Act 218
PopularName Notes:
Essential Insurance
PopularName Notes:
No-Fault Insurance
Notes of Decisions
Ali Bazzi v. Sentinel Ins. Co., 919 N.W.2d 20 (Mich. 2018).
· cites it 2× “MCL 500.3177(1). II. TITAN DID NOT ABROGATE THE INNOCENT-THIRD-PARTY DOCTRINE A.”
Citizens Ins. Co. of Am. v. Buck, 548 N.W.2d 680 (Mich. Ct. App. 1996).
· cites it 14× “If defendant had been properly insured, plaintiff would not have been able to recover this expense from defendant because the no-fault act abolishes certain tort liability when no-fault insurance is in effect.”
Auto-Owners Ins. v. Lombardi Food Serv., Inc., 358 N.W.2d 923 (Mich. Ct. App. 1984).
· cites it 9× “13177, which provides: "An insurer obligated to pay personal protection insurance benefits for accidental bodily injury to a person occupying an uninsured motor vehicle or to the spouse or relative resident in the household of the owner or registrant of an uninsured motor…”
Belcher v. Aetna Cas. & Sur. Co., 293 N.W.2d 594 (Mich. 1980).
· cites it 2× “MCL 500.3177; MSA 24.13177. (5) The act excludes the payment of personal protection insurance benefits under certain circumstances.”
Perez v. State Farm Mut. Auto. Ins., 344 N.W.2d 773 (Mich. 1984).
· cites it 2× “[23] Under the dissenting opinion's view of § 3109(1), the failure of the workers' compensation act to provide for payments where the employer has failed to procure workers' compensation coverage would effectively frustrate the purpose of the no-fault act which does provide…”
Butterworth Hosp. v. Farm Bureau Ins., 570 N.W.2d 304 (Mich. Ct. App. 1997).
· cites it 2× “§ 500.3177(1); M.S.A. § 24.13177(1). Farm Bureau points out that Wright's mother was not required to insure her vehicle as long as it was not operated on the highway and did all that could reasonably be expected of her to keep the vehicle from being driven by expressly…”
McKendrick v. Petrucci, 247 N.W.2d 349 (Mich. Ct. App. 1976).
“MCLA 500.3177; MSA 24.13177. In providing that the uninsured tortfeasor does not have the same immunity that exists when there is insurance coverage, the act creates another significant incentive towards the goal of insurance coverage for all automobiles.”
Aetna Cas. & Sur. Co. v. Collins, 373 N.W.2d 177 (Mich. Ct. App. 1985).
· cites it 3× “On appeal, plaintiff states the issue in the matter as follows: "Is the no-fault insurance carrier barred from receiving their rights under the No-Fault Act pursuant to MCLA 500.3177 and barred from suing the uninsured motorist for twenty thousand dollars ($20,000) after having…”
Darnell v. Auto-Owners Ins., 369 N.W.2d 243 (Mich. Ct. App. 1985).
“It should also be noted that the Legislature provided for the collection of loss adjustment costs in indemnity actions against uninsured motorists in MCL 500.3177; MSA 24.13177. Accordingly, we do not believe the Legislature contemplated that loss adjustment costs be recouped…”
Morris v. Allstate Ins., 584 N.W.2d 340 (Mich. Ct. App. 1998).
· cites it 3× “n In addition, defendant argues that the trial court erred in denying defendant’s motion for leave to file a third-party complaint against the owners of the uninsured vehicles involved in the accident to seek reimbursement pursuant to MCL 500.3177(1); MSA 24.13177(1). We…”
— Mich. Comp. Laws § 500.3177(1) — 20 cases
Citizens Ins. Co. of Am. v. Buck, 548 N.W.2d 680 (Mich. Ct. App. 1996).
“If defendant had been properly insured, plaintiff would not have been able to recover this expense from defendant because the no-fault act abolishes certain tort liability when no-fault insurance is in effect.”
Butterworth Hosp. v. Farm Bureau Ins., 570 N.W.2d 304 (Mich. Ct. App. 1997).
“§ 500.3177(1); M.S.A. § 24.13177(1). Farm Bureau points out that Wright's mother was not required to insure her vehicle as long as it was not operated on the highway and did all that could reasonably be expected of her to keep the vehicle from being driven by expressly…”
Morris v. Allstate Ins., 584 N.W.2d 340 (Mich. Ct. App. 1998).
“n In addition, defendant argues that the trial court erred in denying defendant’s motion for leave to file a third-party complaint against the owners of the uninsured vehicles involved in the accident to seek reimbursement pursuant to MCL 500.3177(1); MSA 24.13177(1). We…”
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