Live by the Sword, Die by the Sword: Provider Stands in the Shoes of Assignee When Policy Rescinded for Misrepresentation

In Northland Radiology, et al. v IDS Property Insurance Company, et al., the Court relied upon the recent cases dealing with fraud, misrepresentation, and the effect of rescission on innocent parties. The Court quoted extensively the analysis in Bazzi v Sentinel Ins Co., 502 Mich 390 (2018) in both determining that the misrepresentation made by the insureds was material and that the policy between the insureds and IDS was appropriately rescinded. The Court also relied upon the rule of Bahri v IDS Prop Cas Ins Co, 308 Mich App 420 (2014) when finding that an assignee of an insured who has committed fraud stands in their shoes for both purposes of recovery as well as denial of coverage. The Court’s reliance on these two cases shows that Bazzi and Bahri are here to stay and can be the basis for a strong motion for summary disposition when the facts present themselves.

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