Michael F. Schmidt And Nate Peplinski Obtain Summary Disposition In Claim For No Fault Benefits By Four Passengers For Insurance Coverage Based On Misrepresentations Made In The Application For The Policy

Jonathan Lamb, Tatiana Doss Manciel, Shantel Bagby and Dominque White v Integon National Insurance Company, National General Insurance Company and Michigan Assigned Claims Plan, Wayne County Circuit Court. Plaintiffs, Lamb, Manciel, Bagby and White, filed suit as passengers in a vehicle allegedly insured by Integon seeking recovery of no fault benefits. After discovery we filed a motion for summary disposition on the basis that the policy of insurance issued for the vehicle in which the plaintiffs were passengers had been rescinded based on misrepresentations made in the application. The plaintiffs filed a response brief and the court heard oral argument. The plaintiffs argued that there was no material misrepresentation, that the insurer had not established that it would have charged additional premium and there was a question of fact whether the insured committed fraud. We filed a reply brief arguing that the material representation established was by an affidavit of the underwriter, and that had the correct information been provided regarding prior claims, the policy would not have been issued or there would have been increased premium charged. We further argued that there was no issue of fraud and that the case law was clear that the insurer does not have to prove fraud in order to void a policy based on a misrepresentation made in the application and that the policy condition in this case also specifically provided that the insurer did not have to prove fraud to rescind the policy based upon a misrepresentation in the application. After hearing oral argument, the trial court agreed with all of the arguments that we made and granted summary disposition as to all claims made by the plaintiffs.