Citizens Insurance Co. of America v. Federated Mutual Insurance

These automobile insurance cases, consolidated for the purpose of appeal, involve the requirements of Michigan’s no-fault act, MCL 500.3101 et seq.; MSA 24.13101 et seq., and financial responsibility act, MCL 257.501 et seq.; MSA 9.2201 et seq., relative to vehicle ownership. In each case we are asked to decide the validity of a vehicle owner’s policy of liability insurance that denies coverage to any permissive user who is otherwise insured for an amount equal to that specified by the no-fault act. We hold that the vehicle owner’s policy at issue is invalid because it denies coverage for…