Posted On: August 1, 2005, 4:36 pm CDT

Posted By: Bill K

According to Ins. Journal report of 3/25/05, the MI Claims Catastrophic Assoc.(MCCA) pays out $50 Million per month and assesses every policy $141.70 annually. You have to wonder how many people drive without insurance given the size of that surcharge. Yes, you can mandate lifetime coverage, but can you afford it?
A couple of points on the NE case. First, we are talking aboutn liability coverage not PIP. Second, from the few facts available it sounds like the insurer offered coverage to the county in the event that it had multiple separate $1 MM claims and not excess coverage for any one claim in excess of $1 MM, so it was providing a benefit to the county for the premium charged.