Living in a Material World: What Constitutes as Material Misrepresentations Under the No-Fault Act

In an unpublished decision, the Michigan Court of Appeals in Marija Sabados v State Farm Mutual Auto Ins. Co., Docket No. 342088, issued February 12, 2019, reiterated that a statement made in connection with a claim for no-fault PIP benefits is material if it is reasonably relevant to the insurer’s investigation of a claim.

Plaintiff in Sabado misrepresented that she could not drive as a result of an accident.  This misrepresentation was material because it was evidence of the severity of her injuries, which is reasonably relevant to Defendant’s investigation of the claim.  It was also relevant because Plaintiff claimed “driving” as one of the replacement services to which she was entitled. 

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