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160578 - Wesley Zoo Yang v Everest National Ins Co

Wesley Zoo Yang and Viengkham Moualor,

 

Lee Roy Temrowski

 

Plaintiffs-Appellees,

 

v

(Appeal from Ct of Appeals)

 

 

(Wayne – Hubbard, S.)

 

Everest National Insurance Company,

 

Karen Beach

 

Defendant-Appellant,

 

and

 

 

Motorist Mutual Insurance Company,

 

Christian Huffman

 

Defendant-Appellee.

 

Summary

Everest National Insurance Company sent a notice to an insured stating that his insurance policy would be canceled if he did not make the payment on the day it was due.  The insured did not make the payment on time, and he and his wife were subsequently injured when they were hit by a car.  The insured made the premium payment two days after the accident.  Everest denied coverage for no-fault benefits on the basis that the insured did not have a valid policy at the time of the accident.  The insured and his wife sued Everest, and the trial court denied Everest’s motion for summary disposition.  The Court of Appeals affirmed in a published opinion, holding that a notice of cancellation sent by an insurer before the time for making a premium payment does not satisfy MCL 500.3020(1)(b), which provides that a no-fault policy “may be canceled at any time by the insurer by mailing to the insured . . . a not less than 10 days’ written notice of cancellation . . . .”  The Supreme Court has ordered oral argument on the application to address:  (1) whether an insurer may cancel an insurance policy in compliance with MCL 500.3020(1)(b) by mailing a written notice of cancellation to the insured before the grounds for cancellation have occurred; and (2) whether Everest’s written notice of cancellation complied with the provision in the insurance policy that requires “at least 10 days notice by first class mail, if cancellation is for non-payment of premium.”​