Erie Insurance Exchange v. Megan Johnson

Summary

The court held that insureds may direct the order in which their PIP benefits are paid among individual medical bills, not merely among broad statutory categories of loss. Erie therefore owed the designated benefits and regular 12% overdue-payment interest, but its good-faith reliance on an unsettled statutory question justified reversing the award of excess interest and attorney fees. The case was affirmed in part, reversed in part, and remanded.