In April of 2013, the Court of Appeals of Kentucky held that the insurer was required to utilize the insured’s basic reparations benefits coverage prior to Med Pay coverage. (See Cole v. Fagin, 2013 WL 1694758 (Ky. App 2013)). In this case the plaintiff carried a car accident policy with the defendant for among other things, it included a $5,000 in Med Pay and $10,000 in Basic Reparations Benefits (BRB). On July 1, 2009, the plaintiff was injured in a Kentucky car accident. The defendant insurance company mailed the injured plaintiff a BRB application on July 2, 2009. The defendant insurance company also mailed her the PIP forms.
Shortly thereafter, the defendant insurance company sent the plaintiff a letter informing her that the Med Pay would be used first because there was a one year statute on coverage for that, and then the PIP would be used because there was a two year statute on that coverage. The plaintiff eventually had both claims opened. The Kentucky car accident insurance coverage case racked up $3,976.57 worth of medical expenses from August 6, 2009 to October 22, 2009. The plaintiff’s Kentucky car accident personal injury lawyer finally filed the lawsuit on October 13, 2011. The Kentucky car accident personal injury lawyer alleged a contractual obligation and underinsured coverage and also that the defendant insurance company had only partially paid a claim that she had made with them for Med Pay and BRB benefits under the plaintiff’s insurance policy. Id.
The defendant insurance company filed a motion to dismiss prior to putting in an Answer. It argued that the payment of the medical bills was from the Med Pay and thus there was only a one year statute of limitations to bring a Kentucky car accident personal injury lawsuit. The last day to file the personal injury lawsuit would have been July 1, 2010. And since the plaintiff did not object as to from where the medical expenses were paid from that the defendant was allowed to have paid it from the Med Pay and thus incur the one year statute of limitations.
This court on appeal had to decide whether the medical expenses paid by the defendant insurance company were medical expenses paid by her Med Pay or BRB coverage. The Kentucky law on the issue mandates the utilization of BRB coverage prior to Med Pay coverage. The concept of “no-fault” in Kentucky lends itself to having the payments considered BRB first and not Med Pay. This court agreed that “… all PIP benefits must be paid before an insurer can disburse MedPay benefits.” (cites omitted).
If you have been the subject of a Kentucky Car Accident Insurance Coverage Case, please call and speak to a Kentucky Car Accident Insurance Coverage lawyer at the Law Offices of Andrew Alitowski, P.A. at 888-ASK-ANDREW (888-275-2637) or contact us. We are available 24 hours a day, 7 days a week.
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