Court of Appeals Summary Decision of the Month:
Insurance. No-Fault. Basic reparation benefits. Direction of Payments.
Andrews v. Travelers
Appellant was an injured passenger in an uninsured automobile accident. She applied for basic reparation benefits (BRB) through the Kentucky Assigned Claims Plan; her claim was assigned to Travelers. Appellant submitted medical bills exceeding $10,000 to Travelers. However, shortly after doing so, she sent a letter to Travelers reserving the right to direct BRB payments. Appellant later filed suit against Travelers for its failure to issue BRB payments. Travelers moved for summary judgment, asserting that the BRB payments were not overdue because no direction of payment had been made pursuant to KRS 304.39-210. The circuit court agreed and entered summary judgment in favor of Travelers. The Court of Appeals affirmed, holding that the payments were not overdue under KRS 304.39-210(1) because “benefits are not overdue if a reparation obligor has not made payment to a provider of services due to the request of a secured person when the secured person is directing the payment of benefits among the different elements of loss.” Here, appellant reserved the right to direct payment, but she failed to actually direct payment after reserving this right; therefore, no BRB payments were overdue and the circuit court’s entry of summary judgment was correct.
*******************
Here are individual summaries prepared by the AOC organized by legal topics this months PUBLISHED decisions only.
For a list of all archived monthly summaries, please click here for those at the AOC web site and click here for those posted here on this blog.
Please note some of these published decisions may have pending motions for discretionary review so you are cautioned to confirm finality of disposition by going to the AOC’s web site.
