266.1(1)Sections 266.2 to 266.993 apply only to matters arising out of accidents involving an automobile occurring on or after the commencement of this subsection.

266.1(2)Sections 266.2 to 266.993 apply only to a claim for damages by a person who is not insured under a contract within the meaning of section 255 and who has no other insurance, or who has other insurance that is inadequate, with respect to the damages claimed, and, subject to subsection (4), no person other than one who is not insured under a contract within the meaning of section 255 and who has no other insurance, or who has other insurance that is inadequate, with respect to the damages claimed, shall apply to the Facility Association for payment of damages in accordance with sections 266.2 to 266.993.

266.1(3)Notwithstanding any other provision of this Act, no person shall apply to the Facility Association under section 266.2 or 266.3 for payment of damages in respect of damage to an automobile owned by or registered in the name of the person, notwithstanding that the person may have had no applicable and collectible insurance with respect of that automobile at the time of the accident in which the damage was incurred, if, at the time of the accident, the person was driving the automobile or had the care or control of it, whether it was in motion or not.

266.1(4)Where a question arises between a person’s insurer and the Facility Association as to whether a person is insured under a contract of insurance within the meaning of section 255 or has other insurance with respect to the damages claimed, the person may, at the person’s option, make a claim for damages against the insurer or apply to the Facility Association for payment of damages in accordance with sections 266.2 to 266.993.

266.1(5)Where, in the circumstances described in subsection (4), a person elects to make a claim for damages against the person’s insurer and liability is denied on the grounds that the person is not insured under a contract within the meaning of section 255 and has no other insurance with respect to the damages claimed, the person may proceed, in accordance with sections 266.2 to 266.993, to apply to the Facility Association for payment of damages.

266.1(6)Where, in the circumstances described in subsection (4) or (5), a person elects to proceed, in accordance with sections 266.2 to 266.993, to apply to the Facility Association for payment of damages and the Facility Association makes a payment to the person in accordance with those sections, the Facility Association is subrogated to the extent of those payments to the rights of the person to whom the amount is paid and, where in the opinion of the Facility Association, the person is insured under a contract within the meaning of section 255 or has other insurance with respect to the damages claimed, the Facility Association may bring an action in its name or in the name of such person against the insurer to recover the amount of the payment.

266.1(7)No payment made by the Facility Association in the circumstances described in subsection (6) bars the person to whom it is made from making a claim against the person’s insurer for damages in excess of the amount of the payment by the Facility Association.