Insurance Law Lesson 89: The Age of the Fraud

Lesson 88 discussed Maurer v Fremont Ins Co. Mr. Maurer noticed that his application materials in 2006 and 2012 failed to disclose that his wife used one of the vehicles for part-time mail delivery. Maurer never told Fremont about the inaccuracy, but he was saved because he had complied with the instruction to inform his agent.

Another issue in that case was the statute of limitations. The parties (Maurer on one side and Fremont on the other) agreed that the statute of limitations for fraud in Michigan is six years. Thus, if the misrepresentation in the policy application had been more than six years old, that also would have prevented Fremont from seeking recision.

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