PLMImedium
After a Michigan personal auto policy has been in effect more than 55 days, which of the following is a permitted ground for mid-term cancellation under MCL 500.3220?
Non-payment of premium, suspension of the named insured's driver license, or material misrepresentation
BA single not-at-fault comprehensive claim
CThe insurer's appetite has changed for the territory
DThe insured filed a DIFS complaint against the insurer, triggering automatic policy rescission within thirty days
Why this is the answer
Michigan's Essential Insurance Act and MCL 500.3220 sharply restrict mid-term cancellation of personal auto. After 55 days of coverage, only enumerated grounds — non-payment, license suspension or revocation, or material misrepresentation in the application — support cancellation. Retaliation for a DIFS complaint is independently prohibited.
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