January 2025 • Volume 18, No. 1

By Ann-Marie E. Earls

I hope all our members had a relaxing and joyous holiday season! As we reflect on our Section’s accomplishments in 2024 and aspirations for 2025, I want to thank Patrick Crandell, our past Chairperson, for his incredible work. He has worked tirelessly over the last year to seamlessly transition the Insurance & Indemnity Section Journal to its electronic form, increase engagement at our educational programs and networking events, and to make our committees more effective and efficient. I am excited to continue his work in the year ahead of us.

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By Michael S. Hale

Insurance applications can serve as swords and shields by insurers and can be timebombs waiting to go off in many cases. They deserve the critical attention of those signing them.
In the recent unpublished case of USA Underwriters v DeJonnae Audrey Isaac,1 decided December 17, 2024, the Michigan Court of Appeals held that the “balancing of the equities” defense in an insurance recission action must be raised at the trial court or it is waived and, as a result, did not preclude rescission of a personal automobile insurance policy.

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By Christopher Best and Stephanie Strycharz

Most Uninsured Motorists policies have a provision to account for when there has been an alleged hit and run automobile accident. Policies differ on what they require, but most policies contain several conditions precedent that must be followed before an insured will even be evaluated as to whether they are legally entitled to recover under the additional provisions of the uninsured motorist policy (i.e., whether the insured was less than 50 percent at fault in causing the accident and whether the insured sustained a threshold qualifying injury). The condition precedent provisions are in place to prevent overarching fraud in pursuit of recovery. 

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Council Meeting and Social Outing

IIS’s next business meeting is on Thursday, January 30, 2025, at 4 pm at DraftKings Sports & Social in Troy, Michigan. It will be followed by heavy appetizers, drinks, and trivia from 4:30-6:30pm. There is no charge for this event. Please register today by emailing Joan O’Sullivan at josullivan3399@gmail.com.

By Rabih Hamawi

It would be hard to find anything in the area of liability insurance that is more misunderstood than the certificate of insurance. It’s frequently called the “ACORD” form because these words appear at the top. Over my last 20 years in the business, both as an attorney, and previously as an insurance agent, I have talked to many insureds that referred to ACORD as the insurer, but that’s obviously not true.

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By Christopher J. Petrick & Katharine Buehner Smith; Collins Einhorn Farrell PC

The results of the election are in and the Democrats bicameral majority in the Legislature has come to an end. Democrats hoped to capitalize on their majority as the session came to a close, but several members from both sides of the aisle opted to skip the last days, leaving several bills to die on the vine. A new session starts in January with Democrats holding a majority in the Senate and Republicans holding a majority in the House.

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By Eric Cohn

Unpublished Michigan Court of Appeals Decisions

The Intersection of Equity and the No-Fault Act Continues to Cause Appealable Issues

USA Underwriters v Progressive Michigan Insurance Co, et al
Docket No. 367384

DeJonnae Isaac applied for auto insurance with USA Underwriters in March 2021. In her application, she represented that she had a valid driver’s license and elected residual liability coverage limits of $50,000/$100,000 under MCL 500.3009(5). After Isaac was involved in an accident with Lorrayne Defer in April 2021, USA Underwriters discovered that Isaac did not have a valid driver’s license when she applied for the policy. USA Underwriters rescinded the policy based on this material misrepresentation.

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Originally hosted on October 28, 2024 at Saint John’s Resort.

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JOURNAL DETAILS

This journal is published by the Insurance and Indemnity Law Section, State Bar of Michigan—Christine Caswell, Journal Editor.

Opinions expressed herein are those of the authors or the editor and do not necessarily reflect the opinions of the section council or the membership.

If you have an article idea for the Journal, please contact the editor, Christine Caswell.

SECTION INFORMATION

Officers & Council Information

2024-2025 Officers and Council Pictorial

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