Meemic Insurance Company v. Angela Jones

Summary

The Michigan Supreme Court held that an insurer may seek subrogation from an insured after rescinding the insured’s risk contract when the policy contains a standard mortgage clause and the insurer paid the mortgagee while denying payment to the insured. The mortgage clause created separate risk and lienholder contracts, and the subrogation provision remained enforceable because the policy’s language showed that it applied to the surviving lienholder contract. The Court reversed the Court of Appeals and reinstated the trial court’s judgment for Meemic.