THE INSURANCE CODE OF 1956
Act 218 of 1956
500.2218 Disability insurance; false statement in application; effect.
Sec. 2218.
The falsity of any statement in the application for any disability insurance policy covered by chapter 34 of this code may not bar the right to recovery thereunder unless such false statement materially affected either the acceptance of the risk or the hazard assumed by the insurer.
(1) No misrepresentation shall avoid any contract of insurance or defeat recovery thereunder unless the misrepresentation was material. No misrepresentation shall be deemed material unless knowledge by the insurer of the facts misrepresented would have led to a refusal by the insurer to make the contract.
(2) A representation is a statement as to past or present fact, made to the insurer by or by the authority of the applicant for insurance or the prospective insured, at or before the making of the insurance contract as an inducement to the making thereof. A misrepresentation is a false representation, and the facts misrepresented are those facts which make the representation false.
(3) In determining the question of materiality, evidence of the practice of the insurer which made the contract with respect to the acceptance or rejection of similar risks shall be admissible.
(4) A misrepresentation that an applicant for life, accident or health insurance has not had previous medical treatment, consultation or observation, or has not had previous treatment or care in a hospital or other like institution, shall be deemed, for the purpose of determining its materiality, a misrepresentation that the applicant has not had the disease, ailment or other medical impairment for which such treatment or care was given or which was discovered by any licensed medical practitioner as a result of such consultation or observation. If in any action to rescind any contract or to recover thereon, any misrepresentation is proved by the insurer, and the insured or any other person having or claiming a right under the contract, shall prevent full disclosure and proof of the nature of the medical impairment, the misrepresentation shall be presumed to have been material.
History: 1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1957, Act 91, Eff. Sept. 27, 1957
PopularName Notes:
Act 218
Notes of Decisions
Oade v. Jackson Nat'l Life Ins., 632 N.W.2d 126 (Mich. 2001).
· cites it 33× “§ 500.2218 applies to the facts of the instant case, we disagree with its conclusion that Mr.”
Smith v. Globe Life Ins., 597 N.W.2d 28 (Mich. 1999).
· cites it 11× “MCL 500.2218; MSA 24.12218 limits the right of an insurer to rescind an insurance policy on the basis of false statements made in the insurance application.”
United of Omaha Life Ins. Co. v. Rex Roto Corp., 126 F.3d 785 (6th Cir. 1997).
· cites it 5× “may not bar the right to recovery thereunder unless such false statement materially affected either the acceptance of the risk or the hazard assumed by the insurer.”
In Re Certified Question, 318 N.W.2d 456 (Mich. 1982).
· cites it 4× “410 Mich 1108 (1981): "Should the term `materiality' in [MCL 500.2218; MSA 24.12218] be construed to require only that a misrepresentation affect the insurer's risk, or should it be construed also to require that the subject of the misrepresentation be related to the cause of…”
Old Line Life Ins. Co. of Am. v. David K. Garcia, 411 F.3d 605 (6th Cir. 2005).
· cites it 3× “See Mich. Comp. Laws § 500.2218 (2). The insured’s possible replacement of the existing policies was prospective, and the language discussing replacement was wholly permissive.”
Montgomery v. Fid. & Guar. Life Ins., 713 N.W.2d 801 (Mich. Ct. App. 2006).
“*129 MCL 500.2218 provides that an insurer may rescind an insurance policy if it discovers that an insured made a material misrepresentation on the application for insurance and that the misrepresentation affected either the acceptance of the risk or the hazard assumed by the…”
Howard v. Golden State Mut. Life Ins., 231 N.W.2d 655 (Mich. Ct. App. 1975).
· cites it 3× “12218 provides: "The falsity of any statement in the application for any disability insurance policy covered by chapter 34 of this code may not bar the right to recovery thereunder unless such false statement materially affected either the acceptance of the risk or the hazard…”
Fakhouri v. Banner Life Ins., 157 F. Supp. 2d 751 (E.D. Mich. 2001).
· cites it 5× “Defendant argues that MCLA § 500.2218 permits an insurer to rescind a life insurance policy where misrepresentations materially affect the risks assumed by the insurer.”
Wickersham v. John Hancock Mut. Life Ins., 413 Mich. 57 (Mich. 1982).
· cites it 4× “410 Mich 1108 (1981): "Should the term 'materiality’ in [MCL 500.2218; MSA 24.12218] be construed to require only that a misrepresentation affect the insurer’s risk, or should it be construed also to require that the subject of the misrepresentation be related to the cause of…”
Clark v. John Hancock Mut. Life Ins., 447 N.W.2d 783 (Mich. Ct. App. 1989).
· cites it 2× “Second, was there a genuine issue of fact as to whether plaintiff made a material misrepresentation? MCL 500.2218(1); MSA 24.12218(1) provides: No misrepresentation shall avoid any contract of insurance or defeat recovery thereunder unless the *699 misrepresentation was material.”
Cartwright v. MacCabees Mut. Life Ins., 247 N.W.2d 298 (Mich. 1976).
· cites it 2× “In 1957, some 16 years after Wohlfeil , the Legislature amended MCLA 500.2218; MSA 24.12218 by adding four paragraphs to this section of The Insurance Code.”
— Mich. Comp. Laws § 500.2218(1) — 9 cases
Oade v. Jackson Nat'l Life Ins., 632 N.W.2d 126 (Mich. 2001).
“§ 500.2218 applies to the facts of the instant case, we disagree with its conclusion that Mr.”
Smith v. Globe Life Ins., 597 N.W.2d 28 (Mich. 1999).
“MCL 500.2218; MSA 24.12218 limits the right of an insurer to rescind an insurance policy on the basis of false statements made in the insurance application.”
Clark v. John Hancock Mut. Life Ins., 447 N.W.2d 783 (Mich. Ct. App. 1989).
“Second, was there a genuine issue of fact as to whether plaintiff made a material misrepresentation? MCL 500.2218(1); MSA 24.12218(1) provides: No misrepresentation shall avoid any contract of insurance or defeat recovery thereunder unless the *699 misrepresentation was material.”
— Mich. Comp. Laws § 500.2218(2) — 5 cases
Oade v. Jackson Nat'l Life Ins., 632 N.W.2d 126 (Mich. 2001).
“§ 500.2218 applies to the facts of the instant case, we disagree with its conclusion that Mr.”
Smith v. Globe Life Ins., 597 N.W.2d 28 (Mich. 1999).
“MCL 500.2218; MSA 24.12218 limits the right of an insurer to rescind an insurance policy on the basis of false statements made in the insurance application.”
Old Line Life Ins. Co. of Am. v. David K. Garcia, 411 F.3d 605 (6th Cir. 2005).
“See Mich. Comp. Laws § 500.2218 (2). The insured’s possible replacement of the existing policies was prospective, and the language discussing replacement was wholly permissive.”
— Mich. Comp. Laws § 500.2218(3) — 1 case
— Mich. Comp. Laws § 500.2218(4) — 7 cases
In Re Certified Question, 318 N.W.2d 456 (Mich. 1982).
“410 Mich 1108 (1981): "Should the term `materiality' in [MCL 500.2218; MSA 24.12218] be construed to require only that a misrepresentation affect the insurer's risk, or should it be construed also to require that the subject of the misrepresentation be related to the cause of…”
Cartwright v. MacCabees Mut. Life Ins., 247 N.W.2d 298 (Mich. 1976).
“In 1957, some 16 years after Wohlfeil , the Legislature amended MCLA 500.2218; MSA 24.12218 by adding four paragraphs to this section of The Insurance Code.”
Wickersham v. John Hancock Mut. Life Ins., 413 Mich. 57 (Mich. 1982).
“410 Mich 1108 (1981): "Should the term 'materiality’ in [MCL 500.2218; MSA 24.12218] be construed to require only that a misrepresentation affect the insurer’s risk, or should it be construed also to require that the subject of the misrepresentation be related to the cause of…”
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