October 2024 • Volume 17, No. 4

By Patrick Crandell

This is my final column as Chair. And as I reflect on the last year, I’m encouraged by what we’ve accomplished. We hosted legislative and DIFS leaders for a discussion on state-wide insurance issues, we awarded a $5,000 scholarship to a law student, we reconnected at social events, and we learned from an expert panel on using artificial intelligence in our practices. We continue to move the Section forward, making it more fun, inviting, and informative.

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By Michael S. Hale, Clairmont Advisors, LLC and Hale & Hirn, PLC

In handling investigations of insurance agents, adjusters, and licensed insurance counselors in administrative actions and investigations pursued by the Department of Insurance Financial Services (“DIFS” or “the Department”), there is a lot to keep in mind. The purpose of this article is to share some tips with other practitioners on handling (or referring) insurance investigations and notices of administrative hearings brought by DIFS against insurance professionals, in particular, insurance producers.

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Waiver, Equitable Estoppel, and Mend the Hold in the Context of Insurance Coverage in Michigan

Part II of II, continued from the July 2024 edition

By Stephen M. Kelley and Elizabeth A. Downey

Equitable estoppel may be argued to bar an insurer’s statute-of-limitations defense to an insured’s claim where the insurer’s conduct led an insured to delay filing suit. Cincinnati Ins Co v Citizens Ins Co, 454 Mich 263 (1997); Matti Awdish, Inc v Williams, 117 Mich App 270 (1982); Person v Tranz 1 Solutions, LLC, 2024 Mich App LEXIS 2785, 2024 WL 1596886 (Mich St. App Docket No. 364494 decided April 11, 2024) (unpublished).

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By Andy Portinga

When a policyholder is sued and the claim is arguably covered by a liability policy, the insurer has the right and duty to defend the claim. In most cases, this means that the insurer gets to pick the insured’s defense counsel. The ultimate liability, after all, lies with the insurer. Because the insurer bears the financial risk, the insurer gets to pick the lawyer.

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By Martin R. Brown

All states and the District of Columbia (“DC”) require owners of automobiles to purchase auto insurance. Individual state auto insurance requirements vary:

a) 21 states require car owners to purchase Bodily Injury liability (“BI”) and Property Damage liability (“PD”);
b) 11 states require BI, PD, Uninsured Motorist (“UM”), and Underinsured Motorist (“UIM”):
c) 2 states require BI, PD, UM, UIM and Medical Payments; and
d) 17 states require some combination of these coverages combined with some level of Personal Insurance Protection (“PIP”).

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By Eric Cohn

Published Opinions

Recission of a policy is not based on a showing of intent to deceive

Sherman v Progressive Michigan Insurance Company – Michigan Court of Appeals

This case presents a common scenario that attorneys in this area encounter. The Plaintiff purchased insurance through Progressive Michigan Insurance Company for her two vehicles. She informed Progressive that she garaged the vehicles at a Clinton Township address, and that she was the sole individual who was over 14 years of age in her household and that she was the only regular driver of the vehicles. Despite those statements in her application (and in her subsequent renewal), the Plaintiff actually garaged her vehicles in Detroit and had other drivers in her household. The increase in premium but for the misrepresentations would have been 83.2%.

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

We are in the final stretch as the election approaches. House representatives will have their eyes on the election and finishing out their campaigns strong. At the same time, Democrats across the Legislature will likely be keen to ensure that they are capitalizing on their majority with the uncertainty of the election looming on the horizon.

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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.

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