Michigan Court of Appeals; Docket No. 164030; Published
Judges Weaver, Connor, and Kowalski; Unanimous; Per Curiam
Official Michigan Reporter Citation: 207 Mich App 460; Link to Opinion
In this unanimous published per curiam Opinion, the Court of Appeals affirmed the trial court's order granting plaintiff's motion for summary disposition, determining that defendant, Transamerica, was obligated to provide automobile insurance coverage in accordance with the date of effective coverage set forth in defendant's "policy change form," even though defendant claimed that it did not receive the form until March 5,1990, two days after plaintiffs accident.
Plaintiff obtained insurance coverage on his 1977 automobile through the Michigan Automobile Insurance Placement Facility which operates as a part of the no-fault insurance scheme in Michigan. Plaintiff wished to change his coverage from his 1977 Cadillac to a 1979 Pontiac, and completed a policy change request form submitted through Associated Group Underwriters which is known as a "producer" under the MAIPF scheme. The form indicated that coverage was effective February 5,1990, plaintiff was involved in an accident on March 3,1990, and defendant contended that it did not receive the form until March 5, 1990. Defendant sought to make coverage effective as of March 7,1990.
The court held that the policy change form operates similarly to a binder, and that coverage under a binder cannot be terminated until the applicant receives notice of rejection. Recognizing the binding nature of the policy change form, and the accompanying certificate verifying insurance coverage, is consistent with the goal of Michigan's no-fault insurance scheme to guarantee every person insurance coverage on a fair and equitable basis. MCLA 500.3301. Therefore, the court upheld the trial court's grant of summary disposition in favor of plaintiff finding coverage.