Introduced
by
To create a new “insurance fraud prevention authority” funded by at least $6.25 million from assessments paid by insurers to maintain an insurance “facility” (the “pool”) created to provide insurance for individuals who are unable to get insurance in the regular market. The authority would provide financial support to law enforcement agencies and prosecutors intended to reduce insurance fraud. The bill would also amend many details of the law creating a Michigan Catastrophic Claims Association, including requiring an independent annual audit of the MCCA, and requiring it to comply with the state Freedom of Information Act (FOIA) as if it were public body. MCCA is the private entity established to provide reinsurance to cover the liability of individual auto insurance companies to pay unlimited medical claims above $500,000 per incident, as required by the state no-fault auto insurance law.
Referred to the Committee on Insurance
