Michigan Court of Appeals; Docket No. 112548; Unpublished
Judges Michael J. Kelly, Sullivan, and Allen; Unanimous; Per Curiam
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Cancellation and Rescission of Insurance Policies
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals affirmed summary disposition in favor of gamishee-defendant Aetna Casualty & Surety Company, in a case where plaintiff contended that defendant's liability insurance had not been properly canceled in accordance with the provisions of MCLA 500.3020(l)(b).
In this case, defendant Harville was issued a six month automobile insurance policy by Aetna for the period of January 19 through July 19,1984. The policy provided that it could be continued for successive six-month policy periods by payment of the required renewal premium. Although Aetna issued to the defendant a "renewal declarations" sheet listing a policy period from July 19, 1984 to January 19, 1985, the declaration sheet clearly showed that the amount of premium had not been paid and was listed as due. The premium was not paid by defendant Harville, and he was involved in an automobile truck accident in August, 1984, resulting in plaintiff’s decedent's death. After a default judgment was obtained against the defendant, plaintiff served a writ of garnishment upon Aetna in an effort to collect upon Harville's automobile insurance policy. The trial court held that the insurance policy had expired by its own terms on July 19, 1984, due to Harville's failure to pay the renewal premium.
In affirming this decision, the Court of Appeals noted that where an insurance policy expires according to its own terms when the insured party fails to pay the premium, the insurer is not required to give notice of cancellation under MCLA 500.3020. Since Harville did not pay the required premium, his policy expired on July 19, 1984, and Aetna was not obligated to insure or defend against plaintiffs claim.
