REBECCA McCORMIC, MARK McCORMIC, and McCORMIC & ASSOCIATES, Plaintiffs-Appellees, v. AUTO CLUB INSURANCE ASSOCIATION, Defendant-Appellant., 202 Mich. App. 233

Summary

Plaintiffs sought a declaratory judgment that defendant had to defend and indemnify them in a lawsuit. Plaintiffs claimed they were entitled to such defense and indemnification by reason of no-fault insurance policy issued to them. Defendant filed a motion for summary judgment and argued plaintiffs' policy had expired because plaintiffs failed to renew the policy by paying the required premium. The trial court denied defendants' motion and held that the defendant may have waived its rights under the insurance policy because defendant actively sought plaintiffs' continued patronage and had extended credit to them notwithstanding their known history of nonpayment of premiums when due. The appellate court reversed and remanded the decision because it found there was no issue of material fact. The court concluded that after the period of coverage expired, plaintiffs' insurance policy was no longer in effect and notice of cancellation was not required.