Cancellation of Automobile Liability Policies

What this document is

Michigan Insurance Code of 1956, Chapter 32 - Cancellation of Automobile Liability Policies (MCL 500.3204 to 500.3262, 14 sections) is a state statute published by Michigan Legislature (www.legislature.mi.gov). It is one of the Michigan documents that insurance license exam questions are written from, including michigan property & casualty, michigan personal lines practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• MCL 500.3224(1) (Denial of coverage; notice of cancellation)

  “The cancellation of a policy of insurance within the 55-day period enumerated in subdivision (a) of section 3220 shall not be subject to appeal by the insured. Failure to disclose the cancellation by any insured upon any application for insurance shall not be grounds to deny coverage on the basis...”

• MCL 500.3220 (Cancellation; reasons)

  “Subject to the following provisions no insurer licensed to write automobile liability coverage, after a policy has been in effect 55 days or if the policy is a renewal, effective immediately, shall cancel a policy of automobile liability insurance except for any 1 or more of the following reasons:...”

• MCL 500.3224(2) and (3) (Denial of coverage; notice of cancellation)

  “(2) For the provisions of this chapter only, no cancellation shall be effective unless a written notice of cancellation is mailed by certified mail, return receipt requested, to the insured at the last address known to the insurer either through its records, the personal records of the agent who...”

• MCL 500.3212 (Inapplicability of chapter; nonpayment of premiums)

  “The provisions of this chapter are not applicable to cancellations occasioned by nonpayment of premiums and no hearings on appeals or other statutory provisions within this chapter are to be binding on any policy of insurance coverage that lapses due to nonpayment of premium.”

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