No-fault auto insurance; Bodily-injury liability coverage; MCL 500.3009; Progressive Marathon Ins Co v Espinoza-Solis; Effect of a policy’s household exclusion provision

In this case arising from a fatal auto accident, the court found that its holding in Espinoza-Solis compelled the conclusion that, under MCL 500.3009, the liability limits here were $250,000 per person and $500,000 per accident. Thus, it affirmed the trial court’s grant of summary disposition to defendants-estates in this declaratory judgment action brought by plaintiff-insurer. At issue was “whether a household exclusion provision in a no-fault automobile insurance policy’s bodily-injury liability coverage language limits coverage under MCL 500.3009 to $250,000, as” asserted by defendants, or to $50,000 as plaintiff contended. The court noted the issue here was similar to that in Espinoza-Solis. While the coverage issue in that case involved an insured’s noncooperation and this case involved the household exclusion, this distinction did “not affect the ultimate conclusion.” The court clearly held in Espinoza-Solis “‘that the statutorily required minimum residual liability insurance for policies issued after [7/1/20], is $250,000 per person and $500,000 per accident, pursuant to MCL 500.3009(1)(a) and (b), unless the proper steps are followed to exercise the option of selecting a lower coverage amount under MCL 500.3009(5).’” There was no indication here that the insureds opted “for the lower coverage amount.”