Coalition Protecting Auto No-Fault

Lansing – The Michigan Supreme Court issued an order Wednesday in the case of Coalition Protecting Auto No-Fault v. Michigan Catastrophic Claims Association. The court order requests the parties to submit within 35 days supplemental briefs regarding the constitutionality of the statute that purports to exempt the MCCA from the Freedom of Information Act. Oral arguments will follow.

 

In response to a request for comment, CPAN President John Cornack issued the following statement:

 

“A well-functioning MCCA is critical to the existence of our state’s no-fault auto insurance system and for the care of seriously injured accident survivors. CPAN has long held the view that, in order for the Michigan no-fault system to operate properly, efficiently and as originally conceived, there must be transparency with regard to the operations of the legislatively-created Michigan Catastrophic Claims Association.

 

“Given the critically important role performed by the MCCA, it is imperative that this organization be treated just like other governmentally-created bodies, and thus be subject to public scrutiny through the Freedom of Information Act,” said Cornack.

 

The MCCA is a reinsurance fund created by the state legislature in 1978 to reimburse insurers for costs above $530,000 for the care and treatment of seriously injured auto accident survivors. Each Michigan driver is currently assessed through their insurance company a $186 annual charge per vehicle to fund the MCCA.

 

According to the MCCA website, the insurance industry-controlled nonprofit currently holds about $17 billion in assets. Nearly 15,000 auto accident survivors receive care through MCCA reimbursements to insurance companies.

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