Michigan Gov. Gretchen Whitmer called on the Michigan Catastrophic Claims Association (MCCA) to return surplus funds to insured drivers in a Nov. 1 letter written to the nonprofit’s executive director R. Kevin Clinton.
According to Whiter, the MCCA had a surplus of $5 billion as of June 30. Whitmer said the surplus reflects premium overcharges and cost-saving measures in the 2019 no-fault reform legislation, which ended the state’s one-of-a-kind requirement to purchase unlimited medical coverages for crash injuries.
“Now is not the time for the MCCA to withhold money owned to Michiganders,” Whitmer wrote. “I urge you move swiftly to return the surplus funds to policyholders in the form of lump-sum checks.”
Whitmer called for the surplus to be returned directly to auto insurers in full.
Before changes were made to Michigan’s auto insurance law, the MCCA required nearly all drivers to pay a per-vehicle fee as high as $220 in 2019. The assessment reimburses car insurers for medical claims surpassing $580,000.
The MCCA fee for Michigan drivers who maintain unlimited medical coverages fell to $86 beginning July 1, 2021, the lowest in 19 years.
The MCCA had more than $27 billion in total assets according to a June 30 annual statement. Every insurance company that sells auto insurance in Michigan is required to be a member of the MCCA. Its five-member board represent the insurance industry.
Topics Personal Auto Michigan
Was this article valuable?
Here are more articles you may enjoy.
Elon Musk Beats $500 Million Severance Lawsuit by Fired Twitter Workers 
Progressive Q2 Net Income Skyrockets Over 320% 
Wall Street Pushes Back After Activists Escalate Protests 
What Happened to Reinsurance ‘Class of 2023’? Hard Market Defies Age-Old Patterns. 
