Michigan Court of Appeals, Docket No. 101383; Published
Judges Gribbs, Maher and Banks; Unanimous; Per Curiam
Official Michigan Reporter Citation: 172 Mich App 802; Link to Opinion 
STATUTORY INDEXING:
Scope of Mandated Coverages [§3131(1)]
TOPICAL INDEXING:
Motor Vehicle Code (Financial Responsibility Act) (MCL 257.501, et seq.)
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals invalidated an exclusion in a rental car insurance policy that had the effect of denying liability coverage to anyone under the age of 21 years who was using the rental vehicle. The Court held that it was a violation of public policy to exclude the whole class of drivers under the age of 21. In so holding, the Court stated, "St. Paul has attempted to circumvent the purpose of the No-Fault Act by indirectly excluding whole classes of unnamed drivers who could not be directly excluded from coverage. . . . Michigan courts take a dim view of exclusion clauses which would operate to violate the public policy of the Financial Responsibility Act. . . . The law in Michigan clearly forbids the implicit exclusion from an insurance policy of an entire class of unnamed drivers." Therefore, such an exclusion cannot be effectuated by only extending liability coverage to those persons who use the rental vehicle with the rental company's permission.
