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Michael F. Schmidt Persaudes Court To Reform Insurance Policy And Deny Enhanced Coverage As A Matter Of Law

Manier v MIC General Insurance Corporation, Washtenaw County Circuit Court.  Plaintiff filed suit seeking a declaratory judgment that MIC had improperly rescinded and reformed an auto liability insurance policy based on a misrepresentation in the application. The minor plaintiffs were all severely injured in an auto accident and sought recovery under the MIC policy issued to William D. Manier for the policy limits of $100,000/$300,000. We succeeded on a motion for summary disposition on the basis that the policy of insurance issued to Manier’s parents was reformed due to an intentional misrepresentation made by Manier’s mother that Manier resided with his parents and that his vehicles were garaged there. MIC discovered this misrepresentation after an accident involving one of Manier’s vehicles in which his three children were injured. We successfully argued that under the reformed policy the children were “family members”, and thus pursuant to the household exclusion, any liability coverage available to them would be limited to the Michigan financial responsibility limits of $20,000/$40,000.