Insured Not an Insured if Insurer’s Insured has No Insurable Interest in Insured Vehicle

Under MCL 500.3115(1), the policy language defines who qualifies as an “insured” for the purposes of determining priority for no-fault benefits. If no definition is provided, a fact-specific inquiry must be undertaken and the mere fact that a listed driver is the relative of a named insured is not dispositive. The Court followed Smith v Allstate Ins Co, 230 Mich App 434 (1998), that a named insured must have an insurable interest to support the existence of a valid automobile liability insurance policy and that the failure of the named insured to have such an interest renders the policy void.

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