Michigan Court of Appeals; Docket No. 99817; Published
Judges Kelly, Gribbs, and Simon; Unanimous; Opinion by Judge Kelly
Official Michigan Reporter Citation: 172 Mich App 342; Link to Opinion 
STATUTORY INDEXING:
Compulsory Insurance Requirements for Owners or Registrants of Motor Vehicles Required to Be Registered [§3101(1)]
Ways to Provide Required Security [§3101(3) + 3101(4)]
Scope of Mandated Coverages [§3131(1)]
General / Miscellaneous [§3135]
TOPICAL INDEXING:
Motor Vehicle Code (Financial Responsibility Act) (MCL 257.501, et seq.)
CASE SUMMARY:
In this unanimous Opinion by Judge Kelly, the Court of Appeals held that the insurance company of a car dealership which owned a vehicle that the dealership leased to a customer could not properly deny liability coverage for injuries caused by the lessee when driving the leased vehicle. The Court held that §3101(1) of the No-Fault Statute required "the owner or registrant of a motor vehicle required to be registered in this state," to maintain no-fault insurance for payment of PIP benefits and residual liability insurance coverage. In addition, §520(b)(2) of the Michigan Motor Vehicle Code requires that an owner's policy of automobile liability insurance "shall insure the person named therein and any other person, an insured; using any such motor vehicle or motor vehicles with the express or implied permission of such named insured." The Court, referring to the Supreme Court's decision in State Farm v Ruuska (Item No. 290), held that a person using a motor vehicle that causes certain types of damages shall remain liable in tort (§3135); that an insurance policy issued in this state shall afford coverage for such liabilities (§3131); and that an owner or registrant of a motor vehicle shall purchase such a policy (§3101). Thus, based upon the interplay of these three sections, the insurance company writing coverage for the dealership on the leased vehicle could not properly deny liability coverage for a tort committed by the lessee of the vehicle while using the vehicle.
