Court Opinion

ID: 9721554
Source: CourtListenerOpinion
Date Created: 2023-08-26 09:02:17.718385+00
Date Added: 2024-06-11T18:24:27.178529
License: Public Domain

Levin, P. J.
(concurring). I agree with the result reached by my colleagues but on different grounds.
The facts of this case and in Blakeslee v. Farm Bureau Mutual Insurance Co. of Michigan (1971), 32 Mich App 115, where we also held that an “other insurance” exception to uninsured motorist protection was invalid, obscure what to me is the criticial factor to be considered in construing § 3010 of the insurance code1 requiring uninsured motorist protection unless such coverage is rejected in writing by the insured.
Because of the atypical facts in this case and in Blakeslee, the decision in this case and in that one does not affect, except precedentially, the motor vehicle accident claims fund. However, in the more typical case where the accident occurs in Michigan and where the damages are far less than they were *434in the Blakeslee case,2 it will be a matter of great importance to the fund whether insurance carriers may eliminate their liability on the ground that the insured person has other insurance protection.
We have previously held that § 3010 of the insurance code and the motor vehicle accident claims act are in pari materia3
Under § 23 of the motor vehicle accident claims act, the fund is obliged to compensate persons injured by uninsured motorists to the extent of $10,-000 on account of injury to or death of one person and $20,000 for two or more persons in any one accident, but the fund’s liability is limited to situations where the damages caused by the uninsured motorist exceed (i) whatever amount “is recovered from any other source in partial discharge of the claim or judgment,” and (ii) amounts “paid or payable by an insurer”.4 Sections 22(2) and 22(3) of the act *435similarly provide that no payments shall he made out of the fund “of any amount paid or payable by an insurer by reason of the existence of a policy of insurance”.5
Since the fund is liable only to the extent that an injured person does not recover from other sources or from an insurer under a policy of insurance, it would tend to reduce potential claims against the fund if insured drivers carry insurance protection against the risk of damage caused by uninsured motorists. Read in conjunction with the motor vehicle accident claims act it is apparent that the legislative purpose in adding § 3010 to the insurance code (requiring insurance carriers to provide uninsured motorist protection unless such coverage is rejected by the policy holder in writing) was to reduce claims against the fund.
Having in mind that legislative purpose, it is clear that allowing insurance carriers to eliminate or reduce their liability in situations where the insured person has or can recover under other insurance would be contrary to the intent of the Legislature6 and on that ground I agree with my *436colleagues that an “other insurance” clause is invalid to the extent of the statutorily required $10,000/$20,000 uninsured motorist insurance protection.7
In this connection, see Allstate Insurance Co. v. Motor State Insurance Co. (1971), 33 Mich App 469, where we held invalid an exception to the public liability coverage in an automobile liability insurance policy for accidents caused while the vehicle is being operated by an “excluded driver.”

 “No automobile liability or motor vehicle liability policy insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance or use of a motor vehicle shall be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein or supplemental thereto in limits for bodily injury or death set forth in section 504 of Act No. 300 of the Public Acts of 1949, as amended, being section 257.504 of the Compiled Laws of 1948, under provisions approved by the commissioner of insurance, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles, including owners or operators insured by an insolvent insurer, because of bodily injury, sickness or disease, including death, resulting therefrom, unless the named insured rejects such coverage in writing as provided herein.” MCLA § 500.3010 (Stat Ann 1971 Cum Supp § 24.13010).

 In neither this case nor in Blakeslee does our decision affect the fund.
In this case the accident occurred in Florida, and the fund is only required to respond when the accident occurs in Michigan.
In Blakeslee, the net unrecovered judgment against the uninsured motorist was for over $90,000, and, therefore, if timely claim was made against the fund, it was probably obliged to pay $10,000 to the injured plaintiff without regard to whether Farm Bureau Mutual Insurance Co. was also required to pay $10,000 under the uninsured motorist insurance protection which it had written.

 Woods v. Progressive Mutual Insurance Co. (1968), 15 Mich App 335, 337; Oatis v. Dairyland Insurance Co. (1969), 20 Mich App 367, 372.
Section 3010 was added to the insurance code by PA 1965, No 388. That amendatory act was approved the same day as PA 1965, No 389 which amended the motor vehicle accident claims act (PA 1965, No 198) before that act became effective.

 “(2) Where any amount is recovered from any other source in partial discharge of the claim or judgment, or where a claim or judgment for damages is reduced by an amount paid or payable by an insurer or any other person, as provided in section 22(2) or (3) of this act, then the limitations set forth in subsection 1 of this section [$10,000 for one person and $20,000 for two or more persons in any one accident] shall be applicable to the excess of the claim or judgment over the amount by which the claim or judgment is partially satisfied or is reduced under section 22(2) or (3).” MCLA § 257.1123(2) (Stat Ann 1968 Bev § 9.2823[2]).

 “(2) No payment shall be made out of the fund in respect to a claim or judgment for damages or in respect to a judgment against the secretary, of any amount paid or payable by an insurer by reason of the existence of a policy of insurance or of any amount paid or payable by any other person by reason of the existence of any policy, contract, agreement or arrangement, providing for the payment of compensation, indemnity or other benefits.
“(3) No amount sought to be paid out of the fund shall be sought in lieu of making a claim or receiving a payment that is payable by reason of the existence of a policy of insurance, or in lieu of making a claim or receiving a payment that is payable by reason of the existence of any policy, contract, agreement or arrangement, providing for the payment of compensation, indemnity, or other benefits, to which the claimant would be entitled in the absence of this act.” MOLA § 257.1122(2), (3) (Stat Ann 1968 Rev § 9.2822[2], [3]).

 An example will illustrate. Suppose an insured person is injured by an uninsured motorist and the damages are $20,000. If the insured person recovers, as did the plaintiff in this ease, $10,000 under other insurance and is permitted to recover $10,000 under the *436uninsured motorist protection provided by a policy he carries himself, then the fund has no exposure whatsoever. On the other hand, if an other-insurance clause in the uninsured motorist policy he carries himself is valid, then his unrecovered damages are $10,000 and he may collect $10,000 (the limit of the fund’s liability) from the fund.

 “Such a liability insurance policy issued in violation of sections 3004 through 3012 shall, nevertheless, be held valid but be deemed to include the provisions required by such sections, and when any provision in such policy or rider is in conflict with the provisions required to be contained by such sections, the rights, duties and obligations of the insured, the policyholder and the injured person shall be governed by the provisions of such sections”. MCLA § 500-.3012 (Stat Ann 1957 Rev § 24.13012).