Local judge writes disappointing opinion.
Rick Griffin, a Traverse City native appointed by the Bush Administration to the Sixth Circuit, authored a disappointing opinion regarding insurance time limits this week.
Judge Griffin held that a man whose condominium was destroyed by flood waters had to strictly comply with the 60-day proof of loss requirement in the policy and federal regulations, even after the company informed him (mistakenly) that it did not owe him coverage. The Court held that "substantial compliance" with the terms of the proof of loss requirement by the insured is not adequate and "strict compliance", including notarization of the exact amount claimed, is required.
The Court also held that the insurer's inaccurate denial of benefits under the policy was only a "breach" and did not constitute a "repudiation" of the contract: in other words, insurers owe no "strict duty of compliance", but insured consumers do.