Voiding an Insurance Policy Based on Fraud (PIP)

Case: Spencer v. State Farm Mut. Auto. Ins. Co.

Court: Michigan Court of Appeals ( Unpublished Opinion )

Judges: Per Curiam – O’Brien, Jansen, and Murray

The elements of fraud required to void PIP coverage in an automobile policy are:

(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.” [Bahri v IDS Property Cas Ins Co, 308 Mich App 420, 424-425; 864 NW2d 609 (2014), quoting Mina v Gen Star Indemnity Co, 218 Mich App 678, 686; 555 NW2d 1 (1996), rev’d in part on other grounds 455 Mich 866 (1997).]