Mich. Comp. Laws » Michigan Compiled Laws / Chapter 691 / Act 170 of 1964
Michigan Compiled Laws

Mich. Comp. Laws § 691.1409 (2026)

Liability insurance; waiver of defense.

✓ current as of July 2026
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GOVERNMENTAL LIABILITY FOR NEGLIGENCE


Act 170 of 1964


691.1409 Liability insurance; waiver of defense.

Sec. 9.

    (1) A governmental agency may purchase liability insurance to indemnify and protect the governmental agency against loss or to protect the governmental agency and an agent, officer, employee, or volunteer of the governmental agency against loss on account of an adverse judgment arising from a claim for personal injury or property damage caused by the governmental agency or its agent, officer, employee, or volunteer. A governmental agency may pay premiums for the insurance authorized by this section out of current funds.

    (2) The existence of an insurance policy indemnifying a governmental agency against liability for damages is not a waiver of a defense otherwise available to the governmental agency in the defense of the claim.

History: 1964, Act 170, Eff. July 1, 1965 ;-- Am. 2002, Act 400, Imd. Eff. May 30, 2002

PopularName Notes:

Governmental Immunity Act
Notes of Decisions
Cited in 13 cases (1 in the last 5 years), 1970–2026 · leading case: Pichette v. Manistique Pub. Schs., 269 N.W.2d 143 (Mich. 1978).
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Pichette v. Manistique Pub. Schs., 269 N.W.2d 143 (Mich. 1978). · cites it 4× “996(109) provides, in pertinent part, as follows: "The existence of any policy of insurance indemnifying any governmental agency against liability for damages is not a waiver of any defense otherwise available to the governmental agency in the defense of the claim." In view of…”
Maki v. City of East Tawas, 170 N.W.2d 530 (Mich. Ct. App. 1970). · cites it 7× “[15] MCLA § 691.1409 (Stat Ann 1968 Cum Supp § 3.”
Thomas v. Dep't of State Highways, 247 N.W.2d 530 (Mich. 1976). · cites it 2× “996[106]), the Legislature has exposed the state's governmental units to frequent and costly liability. The Legislature also allowed the governmental units to settle claims or to indemnify employees for claims made against them while acting within the scope of their public…”
White v. Beasley, 552 N.W.2d 1 (Mich. 1996). · cites it 2× “§ 691.1409; M.S.A. § 3.996(109). [4] Ross, supra, pp.”
Vargo v. Sauer, 576 N.W.2d 656 (Mich. 1998). · cites it 2× “§ 691.1409; M.S.A. § 3.996(109). [34] The application of dual agency principles in the context of a hospital setting is not a novel concept and has engendered ample exposition elsewhere.”
Pichette v. Manistique Pub. Schs., 213 N.W.2d 784 (Mich. Ct. App. 1973). · cites it 4× “" MCLA 691.1409; MSA 3.996(109). We will address ourselves to the grounds of appeal asserted.”
Hussey v. City of Muskegon Heights, 193 N.W.2d 421 (Mich. Ct. App. 1971). · cites it 2× “MCLA § 691.1409 (Stat Ann 1969 Rev § 3.996[109]).”
Michigan Mun. Liab. & Prop. Pool v. Muskegon Cnty. Bd., 597 N.W.2d 187 (Mich. Ct. App. 1999). “We also note that MCL 691.1409; MSA 3.996(109) expressly authorizes governmental agencies, generally, and thus county road commissions, specifically, to purchase liability insurance to protect its employees against loss resulting from any judgment entered against the employee.”
Ewing v. Bd. of Regents of the Univ. of Michigan, 552 F. Supp. 881 (E.D. Mich. 1982). “§ 691.1409 specifically provides: “... The existence of any policy of insurance indemnifying any governmental agency against liability for damage is not a waiver of any defense otherwise available to the governmental agency in defense of the claim.”
Corona v. Lenawee Cnty. Road Commissioners, 194 N.W.2d 46 (Mich. Ct. App. 1971). · cites it 2× “MCLA § 691.1409 (Stat Ann 1969 Rev § 3.996 [109]).”
Ross v. Consumers Power Co., 363 N.W.2d 641 (Mich. 1985). · cites it 2× “" [37] MCL 691.1409; MSA 3.996(109) provides: "The purchase of liability insurance to indemnify and protect governmental agencies against loss or to protect governmental agencies and some or all of its agents, officers, and employees against loss on account of any judgment…”
Grubaugh v. City of St. Johns, 180 N.W.2d 778 (Mich. 1970). · cites it 2× “MCLA § 691.1409 (Stat Ann 1969 Rev § 3.996 [109]).”
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