Auto Insurer denied subrogation for PIP benefits vs. Health Insurer

In a recent published Appellate Division case, the court firmly upheld a trial court's summary judgment decision which dismissed an action filed by an automobile insurer seeking remuneration from a health insurer for PIP benefits paid for certain people injured in auto accidents. The pertinent facts are that these individuals procured auto insurance from the auto insurer but designated the health insurance as the "primary" payor of PIP benefits in the event of accident.

Here, the health insurer never processed any requests for payment which were made directly by the auto insurer. Here, the auto insurer voluntarily issued PIP benefits (i.e., payments) on behalf of the injured people. Here, it appears that the auto insurer did not direct the injured people to submit their claims to the health insurer first. This is an important step in the PIP scheme of "primary vs. secondary" because only after a denial by the health insurer will the auto insurer become responsible for payment.

Therefore due to the many mis-steps by this auto insurer, its complaint was dismissed with prejudice.

Palisades Insurance Company v. Horizon Blue Cross Blue Shield of New Jersey A-2830-19.