Voiding a Policy Because of Fraud – PIP
Case: Shultz v. Pioneer State Mut. Ins. Co.
Court: Michigan Court of Appeals ( Unpublished Opinion )
Judges: Per Curiam – Beckering, M.J. Kelly, and O’Brien
Generally whether or not an individual committed fraud is a question of fact for the jury, see Shelton v Auto-Owners, 318 Mich App 648, 658-660; 899 NW2d 744 (2017). However, summary disposition is appropriate if there is no genuine issue of material fact regarding an insured’s fraud, Bahri, 308 Mich App at 426. To void a policy because the insured has wilfully misrepresented a material fact, an insurer must show that (1) the misrepresentation was material, (2) that it was false, (3) that the insured knew that it was false at the time it was made or that it was made recklessly, without any knowledge of its truth, and (4) that the insured made the material misrepresentation with the intention that the insurer would act upon it. A statement is material if it is reasonably relevant to the insurer’s investigation of a claim.