Insurer Does Not Waive Right to Rescind Policy After Cancellation Due to Misrepresentation – If the Rescission is Based on Different Misrepresentations

The recent case of Auto-Owners Ins. Co. v. Yahia Motan & Motan Yahia reminds all practitioners of the importance of accurate responses in insurance applications. Auto-Owners addressed the issue of misrepresentations made in commercial insurance policies. 2015 Mich. App. LEXIS 1659 (MI App. 1st Dist. 2015). Decided on September 8, 2015, the Michigan Appellate Court found in favor of the insurer, finding that it relied on the insured’s misrepresentations made in the application to justify cancellation and rescission.

Najieb Jabbar, an agent of Motan …

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