Elizabeta Rumery Obtains Summary Disposition for Zausmer Client Everest Insurance in No-Fault Case

A Wayne County judge recently granted summary disposition in a no-fault action brought by a medical provider seeking reimbursement for services, persuaded by Zausmer associate Liz Rumery that the underlying auto insurance policy was properly rescinded due to the policyholder’s misrepresentations in her insurance application.

The case was brought by a physical therapy practice that treated a passenger who was allegedly injured in a 2014 auto accident. The plaintiff filed suit for payment from Zausmer’s client, Everest National Insurance Company. Liz successfully argued that Everest properly rescinded the policy of the automobile owner (the driver of the car at the time of the accident) because she failed to identify the passenger as a member of her household in the insurance application and did not provide her true address. Had the correct information been given, the insurance premium would have been substantially higher.

Upon discovery of the misrepresentations, Everest rescinded the policy ab initio and issued a refund check for all of the premiums paid. The policyholder endorsed and cashed the check, which constituted an acceptance and ratification of the policy rescission. As a result, as a matter of law, there was no insurance policy under which the plaintiff could make a claim.


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