Greene v. State Farm Mutual Automobile Insurance

268 N.W.2d 703, 83 Mich. App. 505, 1978 Mich. App. LEXIS 2336

• Court: Michigan Court of Appeals
• Decided: May 22, 1978
• Docket: Docket 77-3287
• Status: Published

Opinions

J. H. Gillis, J.

Plaintiff was injured on May 16, 1975, in an automobile accident while covered by a no-fault automobile insurance policy issued by defendant. The trial court granted plaintiff’s motion for partial summary judgment against defendant. GCR 1963, 117.2(2) and (3).

Defendant contends that MCL 500.3109(1); MSA 24.13109(1), which allows an insurer to set off benefits payable against benefits received from a governmental source, is constitutional and not violative of public policy. We agree.

In Smart v Citizens Mutual Insurance Co, 83 Mich App 30; 268 NW2d 273 (1978), the panel, which included this writer, concluded that:

"In mandatory terms, the Legislature, by its enactment of the no-fault automobile insurance provisions, established a minimum level of disability benefits for Michigan citizens who suffer adverse financial consequences from personal injury automobile accidents. The establishment of that minimum level is maintained by Section 3109(1).

"All benefits derived from governmentally promulgated programs are combined under that section to reach the predetermined minimum benefit level. Those who desire to enhance that benefit provision may do so by voluntarily entering into private contractual arrangements.”

Accordingly, on the basis of Smart, supra, we find that the trial court erred in granting plaintiffs motion for summary judgment.

Reversed and remanded for proceedings not inconsistent with this opinion. Costs to appellant.

R. B. Burns, P. J., concurred.