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How insurers can evade liability based on fraud

Steven Gursten featured in Michigan Lawyers Weekly on activist Michigan Supreme Court decision in Titan Insurance Co. v. Hyten

Michigan Lawyers Weekly interviewed Steven M. Gursten, partner of Michigan Auto Law, on a controversial Michigan Supreme Court case Titan Insurance Co. v. Hyten.

According to Lawyers Weekly, the decision allows No-Fault insurers to avoid liability for a third-party injury in some cases, and lowers the bar for insurers trying to prove fraud.

Gursten told the newspaper that the decision gives insurers ability to revisit the application after the claim is made, rather than performing due diligence at the time the policy issued, which is like “an employment lawyer who gets to go through someone’s resume from 20 years earlier and look for things that aren’t true and use it as a defense for a firing that happens 20 years later.”

You can read the full story here: MCS dumps ‘easily ascertainable’ rule; insurers can evade liability based on fraud

July 20, 2012

Related information:

Activist Michigan Supreme Court bends law to favor auto insurance companies

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