Michigan Court of Appeals Honors Conditions Precedent in Policy to Bar Uninsured Motorist (UM) Claim
Plaintiff was involved in a hit and run accident on August 8, 2017, and did not make a police report until August 10, 2017. Plaintiff’s auto insurance policy required that a UM claimant in a hit and run accident make a written report to law enforcement within 24 hours and provide proof that the at-fault driver was uninsured. The Plaintiff filed the police report late and never established that the at-fault driver was uninsured.
Plaintiff filed suit in Wayne County Circuit Court alleging that Defendant Insurer was liable for UM benefits. Defendant Insurer filed a motion for summary disposition alleging that Plaintiff’s claim for UM benefits was invalid because he failed to make a written report to law enforcement within 24 hours and failed to provide proof that the at-fault driver was uninsured. The Trial Court granted Defendant’s motion. The decision was affirmed by the Trial Court on re-hearing.
Plaintiff appealed to the Michigan Court of Appeals and in the unpublished case of Hensley v. Auto Club Group Ins. Co. the trial court’s ruling was affirmed. The Appellate Court stated that UM benefits are not automatic like PIP benefits. They are subject to the contractual provisions of the claimant’s policy, not Michigan Law. The plain language of the reporting provisions, which must be enforced as written, required Plaintiff to provide proof that the at-fault driver was uninsured and make a written report of the incident to law enforcement within 24 hours. The conditions precedent to the insurer’s obligation to honor the claim were not met.
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