LANSING – The Michigan Catastrophic Claims Association (MCCA) announced today that it has issued yet another rate increase. Beginning July 1, 2013 Michigan drivers can expect to see an additional $11 added to the cost of their auto insurance policies. The increase brings the total MCCA surcharge to $186 per vehicle.
In response to this rate increase, CPAN president John Cornack issued the following statement:
“Here we are again, hit with a secretive rate increase that consumers can do nothing about. This fund is controlled entirely by insurance companies, its meetings are closed to the public and its rate setting information is completely closed off from public scrutiny – and that’s exactly why CPAN brought a FOIA lawsuit against the MCCA,” said Cornack.
In a December ruling from the Ingham County Circuit Court, Judge Clinton Canady ruled that “Michigan citizens have a right to know how the insurance premium they pay is calculated to ensure that no-fault insurance is provided on a fair and equitable basis.” The MCCA has filed an appeal, but Judge Canady refused to suspend his ruling pending the appeal, pointing out that the only thing the plaintiffs are seeking in this lawsuit is information about the MCCA rate determination process.
The MCCA is a reinsurance fund created by the state legislature in 1978. Each Michigan insurance policy is charged an annual per-vehicle assessment to fund the MCCA, which helps reimburse insurers for costs above $500,000 for the care and treatment of seriously injured auto accident survivors. The MCCA assessment has increased each year since 2000. About 13,000 accident survivors are provided care through MCCA reimbursements. Currently, the MCCA reports holding $14 billion in assets.
