In A Published Opinion The Court Of Appeals Agrees With Michael F. Schmidt That A Household Exclusion In An Auto Policy Limits Coverage Of The Insured To The Michigan Financial Responsibility Act Limits Of $20,000/$40,000
In Manier v MIC General Insurance Corporation, 281 Mich App 485 (2008), the Court of Appeals has issued a published opinion which affirms the summary disposition we obtained from the Washtenaw County Circuit Court. This is a very important decision because it is the first published and hence first precedentially binding decision of any Michigan appellate court enforcing a household exclusion in an automobile liability policy which limits liability coverage for any claim by the insured or any family member to the Michigan Financial Responsibility Law limits of $20,000/$40,000. The decision reduced the coverage available under the policy from $100,000/$300,000 to $20,000/$40,000. This is a very important decision, because it now allows insurers to enforce such exclusions in Michigan.