Michigan Court of Appeals; Docket No. 243940; Published
Judges Donofrio, Griffin, and Jansen; Unanimous; Per curiam
Official Michigan Reporter Citation: 262 Mich. App. 250, Link to Opinion 
STATUTORY INDEXING:
Not applicable
TOPICAL INDEXING:
Underinsured Motorist Coverage: Notice and Statute of Limitations for Underinsured Motorist Coverage
CASE SUMMARY:
In this unanimous published per curiam opinion, the Court of Appeals upheld a provision in Farm Bureau’s policy requiring that an underinsured motorist claim be filed within one year of the accident. The policy provision stated:
“No action can be brought against this company, unless there has been full compliance with all the policy provisions. No claimant may bring a legal action against the company more than one year after the accident.”
In this case, the accident occurred on September 3, 1999. Plaintiff promptly notified defendant of the accident in September, 1999 and applied for and received no-fault benefits. In December, 2000, plaintiff underwent shoulder surgery to correct injuries caused by the September, 1999 collision. Plaintiff presented a residual bodily injury claim against the at-fault driver’s insurance carrier. The responsible driver was insured at the minimum $20,000/$40,000 level. In March, 2001, plaintiff, for the first time, notified defendant of his claim for underinsured motorist benefits arising from the September, 1999 collision. Defendant rejected this claim on the basis of the one year deadline contained in the policy.
In reversing the trial court ruling that the amendatory language in the policy by which the one year deadline was adopted was ambiguous and unenforceable, the Court of Appeals found the contractual language unambiguous and enforceable. The court noted that the Supreme Court in Morley v Auto Club of Michigan, 458 Mich 459; 581 NW2d 237 (1998) had upheld a very similar limitation on claims for uninsured motorist benefits. Therefore, the deadline contained within the policy was enforceable.
