<Ul> <Li> A quantitative monetary threshold that sets a specific dollar (or other currency) amount that must be spent on medical bills before a tort is allowed . Disadvantages of this threshold are: (1) that it can encourage insureds (and their medical providers) to exaggerate medical costs through over-utilization, and (2) that, unless indexed, it can become ineffective over time because of inflationary effects on medical costs . </Li> <Li> A qualitative verbal threshold that states what categories of injuries are considered sufficiently serious to permit a tort (e.g., death, or permanent disability or disfigurement). The advantage of the verbal threshold is that it removes any incentive to inflate damage amounts artificially to meet some preset monetary loss figure . The primary disadvantage is that broad interpretation by the courts of the threshold can lead to over-compensation . </Li> </Ul> <Li> A quantitative monetary threshold that sets a specific dollar (or other currency) amount that must be spent on medical bills before a tort is allowed . Disadvantages of this threshold are: (1) that it can encourage insureds (and their medical providers) to exaggerate medical costs through over-utilization, and (2) that, unless indexed, it can become ineffective over time because of inflationary effects on medical costs . </Li> <Li> A qualitative verbal threshold that states what categories of injuries are considered sufficiently serious to permit a tort (e.g., death, or permanent disability or disfigurement). The advantage of the verbal threshold is that it removes any incentive to inflate damage amounts artificially to meet some preset monetary loss figure . The primary disadvantage is that broad interpretation by the courts of the threshold can lead to over-compensation . </Li> <P> In three U.S. states--Kentucky, New Jersey, and Pennsylvania--policyholders are permitted to choose between traditional tort and no - fault recovery regimes . Under such systems, known as "choice" or "optional" no - fault, policyholders must select between "full tort" and "limited tort" (no - fault) options at the time the policy is written or renewed; once the policy terms are set forth an insured may not change his / her mind without rewriting the policy . In both Kentucky and New Jersey, policyholders who do not make an affirmative choice in favor of either full tort or limited tort are assigned the no - fault option by default; whereas in Pennsylvania, the full - tort option is the default . </P>

When did michigan become a no fault state