Michigan Court of Appeals; Docket No. 96483; Published
Judges McDonald, Doctoroff, and Robinson; Unanimous; Per Curiam
Official Michigan Reporter Citation: 167 Mich App 400; Link to Opinion 
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Cancellation and Rescission of Insurance Policies
Cancellation of Auto Liability Policies (MCL 500.3204, et seq.)
CASE SUMMARY:
In this unanimous per curiam Opinion, the Court of Appeals addressed a question of first impression regarding the appropriate method for non-renewal of an automobile insurance contract.
In this case, defendant Smith purchased a six month policy of insurance which would expire on October 29, 1983. In September, he decided to change insurance to another company, and requested that his first insurer, Cadillac Insurance Company, cancel his policy. Subsequently, the new insurer notified Smith that his application for insurance had been rejected and that his coverage would end on October 12, 1983. On September 29, 1983, Cadillac Insurance sent Smith a cancellation effective October 11, 1983, for non-payment of premium. On October 4, 1983, Cadillac sent Smith a notice of reinstatement of the original six month policy. On November 1, 1983, three days after the six month policy expired, Smith was involved in an accident injuring plaintiff Slaughter.
The Court of Appeals held that Michigan has no statute governing the procedures which must be followed by an insurer which elects not to renew its insured's auto policy. The provisions of MCLA 500.3204 were held not to be applicable since they were part of the section of the Insurance Code dealing with termination of coverage, and not non-renewal.
Absent a statutory provision which governed the issue, the court looked to the contract between the parties, which contained a provision which required the insurance company to mail notice to the insured of its action not to renew the policy. In this case, Cadillac sent such a notice on September 29, 1983, but before the notice of cancellation became effective on October 11, 1983, Cadillac reinstated the policy on October 4, 1983. This reinstatement was held to obligate Cadillac to send another notice of non-renewal in order to bring the policy to an end on its expiration date. Although Michigan law does not mandate a notice by an insurer of intent not to renew an insurance contract, here the contract itself imposed such a requirement.
