Insured Fails to Update Address on Auto Policy; Appellate Court Affirms Summary Disposition for Defendant
Plaintiff moved several times after obtaining an auto insurance policy from defendant insurance company in 2011. She reported the first move—from Grosse Pointe Woods to Macomb Township—to her insurance carrier, at which time her premium declined. She subsequently moved from Macomb Township to St. Clair Shores and then to Harper Woods over the course of several years but did not notify defendant of any address change. Plaintiff added coverage for a Chevrolet Tahoe to the insurance policy in May 2018, at which time the insurance company still mistakenly recorded her address on the declarations page as Macomb Township.
Plaintiff was involved in a two-car auto accident in December 2018 and filed a claim for first-party benefits. Defendant denied the claim once it “discovered a material misrepresentation” in that the Tahoe was not garaged at the address stated in the policy. Litigation ensued, and the trial court upheld the defendant’s motion for summary disposition.
On appeal the court noted that the case involves an antifraud provision. The policy’s “duty to report changes” provision stipulated that the insured promptly notify the insurer of any address change. A “fraud or misrepresentation” provision stated that the defendant could void the policy if, in part, the insured “concealed or misrepresented any material fact.” Additionally, the fact that the policy renewed on a six-month cycle “constituted separate and distinct contracts.” Plaintiff’s voluntary change of address for her initial move, which lowered premiums in her favor, indicated that she was aware of the requirement but did not comply when subsequent moves would have increased her premium.
The appellate court ruled that the plaintiff’s failure to fully comply with policy terms precluded her from bringing a claim against defendant. Judge Elizabeth L. Gleicher issued a separate opinion, in which she concurred in part and dissented in part.
The case is Losinski v Progressive Marathon Insurance Co., unpublished order of the Michigan Court of Appeals. Released July 29, 2021, No. 355047 in Macomb Circuit Court, LC No. 2019-003837-NI.
Click on the link to read the appellate court ruling and the concurring opinion.
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