An auto insurance company could not rescind an insured’s policy ab initio (“from the beginning”) because there was not enough evidence the insured made fraudulent statements during the application process, the Michigan Court of Appeals has ruled.

The tolling amendment to the one-year-back rule in the no-fault act at MCL 500.3145 does not apply to claims for services which accrued before its effective date, even if a lawsuit was filed after its effective date.

The MI Supreme Court issued an opinion stating the no-fault auto reform law cannot apply to crash survivors who bought policies and were injured before the new law took effect..

In this no-fault insurance case, the trial court properly denied the defendant-insurer’s motions for summary disposition.