MCCA Moves to Block Financial Data from Public View

CPAN Asks: What are insurance companies hiding?

 
LANSING – The Coalition Protecting Auto No-Fault (CPAN) was notified yesterday that the Michigan Catastrophic Claims Association (MCCA) has appealed a recent court ruling that made the organization’s rate-setting data open to the public. The ruling, issued by Judge Clinton Canady III, subjected the MCCA to the Freedom of Information Act and requires the fund to publicly disclose how it calculates the assessment charged to every Michigan vehicle when drivers purchase or renew their auto insurance.

            “After years of trying to shed some light on the MCCA’s rate setting practices we were finally granted access the information needed to have an open and honest discussion about our state’s no-fault system,” said CPAN President John Cornack. “The only logical conclusion to be made from the insurance industry’s appeal is that they are trying to keep the public in the dark.”

            The MCCA is a reinsurance fund created by the state legislature in 1978. Each Michigan driver is currently required to pay $175 annually per vehicle to fund the MCCA, which helps reimburse insurers for costs above $500,000 for the care and treatment of seriously injured auto accident survivors. According to the MCCA website the nonprofit entity currently has about $14 billion in assets, with about 13,000 auto accident survivors receiving care through MCCA reimbursements. 
 
            MCCA appeal comes on the heels of Gov. Snyder’s State of the State speech, in which he called for “thoughtful” discussions as it relates to reforms to Michigan’s auto insurance system.

                “If the governor and legislators truly care about thoughtful policy discussions and government transparency then they should be very disturbed by the MCCA’s actions,” said Cornack. “Just when lawmakers were about to access the information needed to verify whether drivers are being charged appropriate rates to sustain the MCCA, the door is being slammed shut. Lawmakers should refuse to vote on any changes to the state’s auto insurance system until the MCCA agrees to open itself back up to public scrutiny.”
           
                The MCCA is controlled by a five-member board, made up entirely of insurance companies, whose meetings are closed to the public. The Michigan Insurance Commissioner also sits on the board but is not allowed a vote.
                                                                                               
About CPAN
The Coalition Protecting Auto No-Fault is a broad-based coalition of consumer advocate groups, lawyers, doctors, hospitals and other health care providers working together to keep Michigan’s model no-fault insurance law intact. Learn more about CPAN by visiting www.ProtectNoFault.org.