Insurance Coverage Law

The Michigan Consumer Protection Act ("MCPA" or "Act") was established to offer an expanded remedy for consumers affected by misleading business practices. The MCPA forbids “[u]nfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce” and lists numerous specific prohibited practices. “Trade or commerce” is defined as “the conduct of a business providing goods, property, or service primarily for personal, family, or household purposes

Every insurance policy requires the insured to notify the insurance company of a loss or lawsuit in accordance with the policy conditions. Michigan courts treat the provisions differently depending on their specific language: Where the policy requires notice within a specified number of days, Michigan courts will strictly enforce that language and bar coverage if the deadline is missed. Conversely, if the policy uses language such as as soon as practicable or immediately,

If you have submitted a claim to your insurance company, or been sued and asked your insurer to defend you, you may have received a letter stating that the company is "reserving its rights" under your policy. These letters are often long, dense, and unsettling. Policyholders frequently ask: Does this mean my claim is being denied? Not necessarily. But a reservation of rights letter is a signal that your insurance company is preserving its ability to deny coverage later, and i

Most people buy title insurance at a real estate closing, file the policy away, and never think about it again. But when a title defect surfaces, such as an undischarged mortgage, a boundary dispute, or a competing claim to ownership, that policy may be the only thing standing between you and a significant loss. Here is what Michigan property owners should understand about how title claims actually work. TITLE INSURANCE IS NOT LIKE OTHER INSURANCE Title insurance differs from

An insurance policy is a contract and falls under the same legal principles that govern contracts in general. According to Michigan law, a contract can be rescinded under certain conditions, and recently, insurance companies have increasingly sought rescission of insurance policies as a remedy. However, the requirements for an insurance company to achieve rescission are stringent and involve multiple conditions. Typically, an insurance company seeks to rescind a policy when i

Many years ago, professional liability insurance was primarily intended for individuals in the “learned professions,” such as medicine, law, engineering, and accounting. However, as the service sector of the economy grew, there was a greater need for specialization, regulation, and licensure in other service fields, leading to a demand for professional liability coverage beyond these traditional areas. Initially, this expansion included coverage for insurance agents and finan

In Michigan, Public Adjusters may charge up to 10% of the recovery made under a homeowners' policy for property damage claims. The State of Michigan Department of Insurance and Financial Services defines an Adjuster for the Insured (public adjuster) as "An individual allowed by license to contract with and represent the insured who have suffered losses covered by insurance for fire and other hazards. Adjusters for the insured may not adjust workers' compensation losses." The

Business income coverage, also known as business interruption insurance, is an important component of most commercial property insurance policies. When a business suffers property damage that interrupts operations, the resulting loss of income can significantly affect cash flow and the ability to fund payroll, rent, and other operating expenses. Commercial property insurance policies often include business income coverage to replace lost income when an insured premises is dam

In casual conversation, "personal injury" refers to physical injuries sustained by individuals who hire an attorney, often referred to as a "personal injury attorney." Conversely, insurance policies refer to physical injuries sustained by a person as "bodily injury" and define the term "personal injury" to mean something different. Most liability policies, including homeowners insurance and commercial general liability insurance, define "personal and advertising injury" to me

Yes, the State of Michigan Department of Insurance and Financial Services (DIFS) is empowered to ensure access to safe and secure insurance and financial services. Michigan law established DIFS because insurance is fundamental for the opportunity, Does the State of Michigan Monitor Insurance Companies to Protect People Against Bad Faith?security, and success of Michigan residents. DIFS provides consumer protection, outreach, financial empowerment and education services to Mic

Homeowners insurance policies issued in Michigan incorporate and are subject to the Michigan Fire Insurance Contracts Act with respect to coverage for property damage. Two provisions of the Act, MCL 500.2826 and MCL 500.2827, govern when an insurer may withhold payment of replacement-cost benefits until repairs are completed. MCL 500.2826 authorizes a fire policy that pays the difference between the property’s “actual value” at the time of loss and the amount actually expende

Yes, MCL 500.2833 of the Michigan Fire Insurance Contracts Act, identifies eighteen provisions that insurance companies must include in property insurance policies issued in the State of Michigan: (1) Each fire insurance policy issued or delivered in this state shall contain the following provisions: (a) That the policy shall provide, at a minimum, coverage for the actual cash value of the property at the time of the loss, subject to all oth er provisions contained herein. (b

Since the Michigan Supreme Court issued Kewin v Massachusetts Mut Life Ins Co in 1980,1 the judiciary has steadily narrowed the basis on which individuals and business may bring claims for bad-faith practices against insurance carriers. This article discusses those limitations and considers the remedies available to an aggrieved party. Insurance is a tool of risk management The law recognizes that, no matter how presented, when a claim is denied, there will be a negative reac

Directors and officers liability insurance, also known as “D&O” insurance, is a form of management liability insurance. It is unique, but still falls in to the general category of professional liability coverage and shares many of the same traits, including claims made coverage triggers, extended reporting periods, payment of defense costs and indemnity, and strict claim reporting requirements. Management liability is a constantly evolving risk for organizations and includes

The Michigan No-Fault Act serves as a comprehensive framework that governs the terms and conditions of automobile insurance policies issued to drivers within the state of Michigan. This pivotal piece of legislation is designed to streamline the process of handling automobile accident claims and to ensure that individuals involved in such incidents receive the necessary support without the need for lengthy litigation. One of the key provisions of the Act is its requirement tha

Michigan law has imposed a range of duties on insurance agents through the years, ranging from the most basic duty of an “order taker” for the insured, to the highest duty of fiduciary for the insurance company. Generally, these duties have arisen from three separate legal sources – statutes, contracts and common law. Coupled with the varying designations conferred on insurance agents as well as the infinite number of distinct factual scenarios leading to the purchase of insu

The answer to this question is usually "both." As an initial matter, the term "insurance agent" does not adequately distinguish between professionals who sell insurance. In Michigan, there are insurance producers, brokers, captive agents, independent agents, certified insurance counselors, and others. The type of insurance professional, the extent to which they consult on risk management, and each particular transaction dictate the legal standard of care the agent must meet.