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03/08/76 STATE FARM MUTUAL AUTOMOBILE INSURANCE

March 8, 1976

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY
v.
KURYLOWICZ



Appeal from Kent, Stuart Hoffius, J.

Leave to appeal denied, 397 Mich .

T.m. Burns, P. J., and V. J. Brennan, and M. F. Cavanagh, JJ.

SYLLABUS BY THE COURT

1. Automobiles -- Insurance -- Compensation of Accident Victims -- Legislative Policies.

The policy of the State of Michigan, as found in the statutes regarding automobile liability insurance and compensation for accident victims, is that persons who suffer loss because of automobile accidents shall have a source and a means of recovery.

2. Statutes -- Construction -- Purposes.

Statutes are construed by the Court of Appeals with the aim of preventing inJustice, of obviating absurd consequences, and of opposing all prejudice to the public interests.

3. Automobiles -- Insurance -- Misrepresentation by Insured -- Recovery by Third Party.

Misrepresentation regarding a previous suspension of his driver's license by an insured on his application for automobile insurance will not prevent recovery against the insurer by a third party who is injured by the insured.

4. Automobiles -- Insurance -- Retention of Premiums -- Grounds for Cancellation -- Statutes -- Rescission -- Estoppel.

An automobile liability insurer which retains premium payments from the insured notwithstanding grounds for cancellation reasonably discoverable by the insurer within a statutory 55-day period is estopped to assert those grounds for rescission after that period (MCLA 500.3220; MSA 24.13220).

The opinion of the court was delivered by: Brennan

Complaint by State Farm Mutual Automobile Insurance Company against Frank Kurylowicz, Robert J. Kurylowicz, and others for a declaratory judgment seeking to determine rights under a policy of automobile insurance. Third-party complaint by Frank Kurylowicz and Robert J. Kurylowicz against the Secretary of State. Judgment for defendants and third-party defendant declaring plaintiff liable under the policy. Plaintiff appeals.

Plaintiff, State Farm Mutual Automobile Insurance Company (hereinafter State Farm), appeals as of right from a judgment entered on January 29, 1974 which refused plaintiff's request that an automobile insurance policy which it had issued to defendants ...


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