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Fraudulent Insurance Acts are Detrimental Under MCL 500.3173a(2)

Motor Vehicle Litigation / July 2, 2019

Willie Seals v Allstate Insurance Company, unpublished opinion per curiam of the Court of Appeals, issued June 20, 2019 (Docket No. 343573), provides that if the original claim for no-fault benefits was made to the MAIPF, the provisions of MCL 500.3173a(2) apply, even if the claim has been assigned to a private insurer. This means that defendant insurers should keep watch for oral or written statements that tend to show the existence of fraud. It is also important to note that the court does not require formal documentation of the claim to be submitted to the court for fraud to exist. Rather, the presence of a fraudulent allegation in the complaint or in plaintiff’s deposition testimony is sufficient to establish that a plaintiff is attempting to bring the fraudulent part of the claim.

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