AAA is licensed to transact business in NY – and recission not allowed

Flushing Traditional Acupuncture, P.C. v Auto Club Ins. Assn., AAA Mich., 2016 NY Slip Op 26125 (App. Term 2d Dept. 2016)

(1) “Despite defendant’s assertions that it does not write insurance policies or conduct business in New York, it is uncontroverted that defendant’s New York certificate of authority states that defendant is licensed to engage in specified insurance business in New York. Consequently, defendant was authorized to do business in New York State, and, pursuant to Insurance Law § 1212 (a), an insurer authorized to do business in the state must appoint the Superintendent of Insurance as its agent for service of process “in any proceeding against it on a contract delivered or issued for delivery, or on a cause of action arising, in this state” (emphasis added). Inasmuch as the cause of action in the case at bar arose in New York, we find that the service of process upon the Superintendent of Insurance was sufficient to acquire jurisdiction over defendant (see Insurance Law § 1212 ).”

(2) “Michigan law allows for the rescission of a motor vehicle insurance policy based on fraud or a material misrepresentation in the application for insurance (see Titan Ins. Co. v Hyten, 491 Mich 547, 817 NW2d 562 ; Gagnon v Citizens Ins. Co., 2013 WL 331548, *6 , app denied 494 Mich 883, 834 NW2d 503 ; Lakes States Ins. Co. v Wilson, 231 Mich App 327, 586 NW2d 113 ). However, Michigan has generally denied an insurer’s right to rescind a policy of insurance in order to avoid payment of no-fault benefits to an innocent third party”

Therefore: order of Civil Court reversed.

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