Congratulations to MBL Partner Jill Peterson on securing a significant victory for an insurance client, resulting in the dismissal of more than $200,000 in uninsured motorist and medical provider claims.

The case centered on material misrepresentations made during the insurance application process, where the insured failed to disclose multiple household residents and drivers despite being specifically asked. With Jill’s guidance, the insurer rescinded the policy after uncovering the misrepresentations.

Following extensive discovery and competing summary disposition motions, the Court upheld the rescission, finding that the misrepresentations were material and that the plaintiffs were not entitled to innocent third-party protections after balancing the equities. The Court also determined that the medical providers could not claim innocent third-party status because they were aware of the coverage dispute and nevertheless continued treatment without pursuing alternative coverage.

This outcome reinforces an important principle recognized by the Michigan Supreme Court in Bazzi: “An insurer has a reasonable right to expect honesty in an insurance application.”