Mich. No-Fault Insurance Reform: A Tragedy Of The Commons

Law360 (August 5, 2019, 3:39 PM EDT) -- "The tragedy of the commons is a situation in a shared-resource system where individual users acting independently according to their own self-interest behave contrary to the common good of all users by depleting or spoiling that resource through their collective action." —William Forster Lloyd

In 1972, Democratic Michigan Gov. William Milliken sponsored a proposal calling for “no-fault” automobile accident insurance, known today as the Michigan No-Fault Act. The act was designed to streamline and expedite the claims process for injured individuals. The basic import of the act was to provide “unlimited actual medical and rehabilitation costs…,” along with wage replacement and other ancillary...

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