Michigan Supreme Court Holds Insurer Can Deny Benefits for Discovery Lies
By Melinda S. Kollross
Reversing the appellate court, a unanimous Michigan Supreme Court holds that misrepresentations made by a decedent’s estate during discovery — including attempted recovery for “services rendered after [insured decedent] passed away” could prevent the family of a deceased car accident victim from recovering PIP benefits from an insurer assigned to his claim by a state safety net program. Porsha Williamson et al. v. AAA Of Michigan, No. 165131.
The Court explained that “[f]alse statements submitted during discovery, after a lawsuit for recovery has been filed, may be statements offered in support of a claim.” Per the Michigan insurance code, a claim under the state’s assigned claims plan “that contains or is supported by a fraudulent insurance act,’ however, ‘is ineligible for payment of [PIP] benefits.’”
Melinda S. Kollross