Meemic Insurance Company v. Angela Jones

Summary

The Michigan Supreme Court held that a homeowner’s policy containing a standard mortgage clause creates separate risk and lienholder contracts. Although the insurer properly rescinded the risk contract because of the insured’s material misrepresentation, the lienholder contract and its subrogation provision survived, allowing the insurer to seek reimbursement from the insured for the amount paid to the mortgagee. The Court reversed the Court of Appeals and reinstated the trial court’s final judgment.