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|Bill Would Bring Transparency to Michigan No-Fault System|
Lansing – A bi-partisan group of lawmakers introduced a bill today and would subject the Michigan Catastrophic Claims Association (MCCA) to the state’s transparency laws. The MCCA is a critical component of Michigan’s no-fault auto insurance system that acts as a reinsurance fund for Michigan auto insurance companies, reimbursing them for catastrophic injury claims above $545,000.
Summary Analysis of SB 288 (S-3) - "D Insurance"
In an effort to address the problem of excessively high auto insurance rates in Detroit, SB 288 was recently introduced by Senator Virgil Smith. The Senate Insurance Committee passed two amendments to this bill, which is currently referenced as SB 288 (S-3). This bill gives Detroit
residents, as well as residents of any city where more than 35% of its residents are uninsured, the option to purchase a stripped-down auto no-fault insurance policy that is not legal to sell to any other Michigan citizens. This type of substandard no-fault policy is referred to as a
“Qualified No-Fault Policy.”
These substandard no-fault policies contain drastic limitations in coverage and benefits compared to that which is available under a traditional Michigan no-fault insurance policy. That means people insured under these substandard policies will have second-class auto
insurance compared to other Michigan citizens. Moreover, such policies are likely to have significant negative consequences statewide. The main features of SB 288 (S-3) are described in this summary.
CPAN to Lawmakers: Too Many Unintended Consequences in D-Insurance Plan
CPAN's press release following Senate Insurance Committee hearing where Mayor Mike Duggan presented his D-Insurance Plan.
Proposed Low-Cost Auto Insurance Policy Leaves Detroit Accident Survivors Without Care, Shifts Costs to Taxpayers
CPAN's press release following the Senate Insurance Committee Meeting on June 3rd that resulted in a vote on SB 288, Mayor Duggan's D-Insurance Bill. The bill passed out of committee by a 5 to 3 vote and is now on the Senate floor with a vote anticipated during the week of June 8th. To read CPAN's Analysis of the D-Insurance bill, check the CPAN website Urgent Action Alerts.
Summary Analysis of SB 248 (H-3)
After barely 72 hours of consideration, the Michigan Senate, on April 16, 2015, passed SB 248. The Insurance Committee of the Michigan House of Representatives amended SB 248 and voted SB 248(H-3) out of committee on April 30, 2015. SB 248 (H-3) (hereinafter “the Bill”) is now pending in the House of Representatives. The Bill would: (1) significantly reduce reimbursements to medical providers; (2) substantially limit attendant care benefits to catastrophically injured patients who are cared for at home; (3) create a new catastrophic claims commission for accidents occurring after the effective date of the legislation; (4) create a new insurance fraud authority; and (5) adopt a new test to determine if insurance premiums are excessive. CPAN believes the Bill is seriously flawed, will create great instability in the Michigan auto no-fault system, impair patient access to medical care, seriously reduce revenue to the Michigan health care industry, result in a significant loss of jobs, and completely fail to reduce auto insurance premiums for the majority of Michigan citizens. The highlights of the Bill are summarized is this document.