Michigan Court of Appeals; Docket #255309; Unpublished
Judges Smolenski, Schuette, and Borrello; unanimous; per curiam
Official Michigan Reporter Citation: Not applicable, Link to Opinion 
STATUTORY INDEXING:
Not applicable
TOPICAL INDEXING:
Uninsured Motorist Benefits: Notice and Statute of Limitations for Uninsured Motorist Coverage
CASE SUMMARY:
In this unanimous unpublished per curiam opinion, the Court of Appeals upheld the trial court grant of summary disposition on plaintiffs’ claim for uninsured motorist benefits based upon a policy provision which required such claims be brought within one year of the date of the accident.
Plaintiff Larry Parsons was involved in an accident on October 21, 2000. In November, 2000, a claim for no-fault benefits was made. On December 12, 2001, plaintiff sent a letter to Farm Bureau seeking uninsured motorist benefits. Farm Bureau denied the claim based upon a provision in its policy which required an action “may not be commenced later than one year after the date of the accident causing the injury or damage.”
In upholding the trial court grant of summary disposition, the Court of Appeals relied upon the Supreme Court’s recent decision in Rory v Continental Insurance Company, 473 Mich 457 (2005), which held that because uninsured motorist coverage is optional, the rights and limitations of such coverage are “purely contractual and are construed without reference to the no-fault act.” The court also rejected plaintiffs’ argument that the provisions of MCL 500.2254 prohibit a time limitation of one year in the insurance contract and that the limitation was unreasonable. Both issues were addressed in Rory, supra, and rejected.
The Court of Appeals further rejected plaintiffs’ argument this claim for no-fault benefits was sufficient to put Farm Bureau on notice of the claim for uninsured motorist benefits.
