Michigan Court of Appeals; Docket No. 77-4238; Unpublished
Judges Allen, Cynar, and Freeman; Unanimous
Official Michigan Reporter Citation: Not Applicable; Link to Opinion 
STATUTORY INDEXING:
Liability Policy Exclusions for Owned and Non-Owned Vehicles [§3131]
TOPICAL INDEXING:
Not Applicable
CASE SUMMARY:
This was a rather complex case dealing with "other insurance coverage" policy exclusions. The plaintiff was injured while driving a 1967 Dodge owned by his wife and insured by defendant, Farmers Insurance. His wife also owned a 1973 pickup truck which was insured by defendant, Cavalier Insurance. The Court held that as a result of a policy exclusion in the Farmers policy (1973 pickup) which limited liability to bodily injury to a person arising out of the use of the "described automobile or a nonowned automobile," the policy did not cover the car in which the plaintiff was injured. Accordingly, since no other coverage was available, the "excess insurance" exclusion in the Cavalier policy (1967 Dodge) was not triggered and Cavalier was liable under that policy for payment of PIP benefits.
The Court further held that such a clause as the one in the Farmers policy which limits coverage to designated or nonowned vehicles is not contrary to the no-fault act. Furthermore, the Court saw no reason to limit such clauses to areas of liability coverage or uninsured motorist coverage. The Court saw the Farmers policy exclusion as a valid means of limiting the risk assumed by the insurer so as to correspond with the premium collected. Accordingly, the exclusion was not held to conflict with the public policy of the state. As much as the Farmers policy did not apply to the accident, Farmers was not liable for payment of PIP benefits.
