Corbett v. Allstate Insurance

The parties disagree on the meaning of the word "replaces” in Farm Bureau’s policy defining "owned automobile” to include an automobile which "replaces an owned automobile”. The Court of Appeals said:

"For 'replacement’ to occur when an insured has two vehicles in his possession, the newly acquired vehicle must take the place of the described vehicle and the described vehicle must be treated in such a manner that it becomes clearly apparent that it has been replaced by the newly acquired vehicle and is no longer covered by the insurance policy.” 62 Mich App 557, 564; 233 NW2d 649 (1975).

Constru…