Michigan Bill Calls for Transparency from Catastrophe Claims Assn.

A bill introduced in Michigan would require transparency and detailed financial and actuarial information from the Michigan Catastrophic Claims Association (MCCA) to be published on the association’s website.

House Bill 4752, introduced by Rep. Derek Miller (D-Warren), would require the MCCA to publish this information annually on their website.

The MCCA, created by the legislature in 1978, adds an annual fee to every auto insurance premium in Michigan. Its funds are used to pay for the care of catastrophically injured victims of car crashes. As of July 1, the fee is $150 per car per year.

“Every vehicle owner knows that each year their policy requires a fee to be paid into the MCCA. This fee often changes year-to-year,” said Miller. “The law requires us, as drivers to pay this fee. Yet, how the MCCA determines this fee is a mystery. It’s time the public knows exactly how the MCCA manages this fund.”

However, the MCCA does not currently have to abide by Michigan’s Open Meetings Act or open its books to the public, although it releases some financial information voluntarily, according to Miller. However, the association does not release information about how the funds are managed or how it determines the yearly fee charged to vehicle owners.

Miller said his bill would change the way the MCCA operates by requiring an explanation of how it determines what the yearly fee will be.

The MCCA would have to report on its website how much it expects to spend in claims, the actuarial tables used in determining why that amount is expected to be spent on each claim, and the forecasts, economic data and assessment reports used in establishing the annual fee.

According to Miller’s announcement, the bill has the support of members of both the Democrat and Republican parties.

Source: Michigan Legislature

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