P&CMIhard
Under MCL 500.2218 and MI case law, the distinction between a 'warranty' and a 'representation' in a Michigan P&C policy primarily determines:
AWhether the policy is subject to surplus lines tax and premium reporting requirements under the surplus lines placement rules
Whether strict literal compliance is required, or only substantial truth as to a material fact
CWhether the policy must be filed under MCL 500.2236
DWhether the policy is governed by Michigan or federal law
Why this is the answer
MCL 500.2218 presumes insured statements are representations (judged by material substantial truth), not warranties. Warranties require strict literal compliance and any breach can void coverage. Michigan courts apply this presumption strongly to protect insureds against forfeiture from technical breaches.
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