Court Agrees With Michael F. Schmidt That Insurance Policy Properly Cancelled

Gaugi Properties v AMCO Insurance, St. Clair County Circuit Court, claim by insured for alleged water damage in excess of $200,000 to the insured’s building.  We filed a motion for summary disposition on behalf of AMCO on the basis that the policy was cancelled prior to the loss.  Plaintiff argued that AMCO was estopped from raising the defense because it was not raised in the reservation of rights and denial letters, and because AMCO was aware that the address where the premium notices and cancellation notice were sent was not the insured’s appropriate address.  We obtained summary disposition with the court finding that the cancellation was effective, that the application listed the primary, mailing, billing address, which is where AMCO sent the notices, and that AMCO was not estopped from raising the defense.