The national guide covers negligence, torts, damages, defenses and liability policy structure. This guide covers the Michigan statutes that change those concepts in practice. They are comparative fault, the required liability policy provisions, and casualty cancellation notice.

Comparative fault (MCL 600.2959)

• A plaintiff's economic damages are reduced by the plaintiff's percentage of fault.
• Noneconomic damages are barred when the plaintiff's fault is greater than the combined fault of the other people involved.
• Auto injury cases have a parallel rule. A party more than 50% at fault gets no noneconomic damages (MCL 500.3135(2)(b)). Auto cases also have the no-fault threshold and the mini-tort. See the Michigan auto guide.

Required liability policy provisions

• Insured's bankruptcy: the policy must say the insured's insolvency or bankruptcy doesn't release the insurer. An injured person with an unpaid judgment may bring a garnishment action against the insurer (MCL 500.3006).
• Notice of claim (3008):
  • Late notice doesn't defeat a claim if timely notice wasn't reasonably possible and notice was given as soon as it was.
  • Notice to any authorized agent of the insurer in Michigan counts as notice to the insurer.
• No naming the insurer at trial: except as the law provides, the insurer can't be made a defendant or mentioned during trial of the case against its insured (3030).

Cancellation notice for casualty policies (MCL 500.3020)

• Insurer cancellation requires at least 10 days' written notice mailed to the insured's last known address.
• Malpractice insurance requires at least 60 days' written notice of nonrenewal.
• Short-rate premiums are permitted for motorcycles, watercraft, off-road vehicles and snowmobiles.
• Home and auto policies also follow the longer notice rules in chapter 21 (MCL 500.2123). See the Michigan Homeowners and auto guides.

Common exam traps

• A plaintiff more at fault than everyone else combined loses noneconomic damages but can still recover reduced economic damages.
• The insured's bankruptcy doesn't release the liability insurer.
• Notice to any authorized agent counts as notice to the insurer.
• Casualty cancellation: 10 days. Malpractice nonrenewal: 60 days.