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A Better Partnership
October 25, 2012

COA Opinion: No-fault insurer properly denied coverage to vehicle owner who was an excluded driver

In Bronson Methodist Hospital v Michigan Assigned Claims Facility, the Michigan Court of Appeals upheld a no-fault insurer's denial of PIP coverage to an injured registered owner of a vehicle who was also an excluded driver under the insurance policy. The court applied the plain language of the insurance policy's 'named driver exclusion endorsement' and the no-fault statute, and found that the excluded driver's 'act of driving the insured vehicle at the time of the accident rendered the vehicle uninsured.' Relying on Iqbal v Bristol West Ins Group, Plaintiff argued that a vehicle owner is covered by a no-fault policy even when, as here, someone else insures the vehicle. The Court of appeals distinguished Iqbal on grounds that the vehicle owner in that case was not an excluded driver. The Court affirmed the trial court's grant of summary disposition in favor of the insurer and the Michigan Assigned Claims Facility (MACF).

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