Introduced
by
To require an independent audit of the Michigan Catastrophic Claims Association every five years, which would examine the actuarial assumptions, investment strategy, expenses, and recent liabilities to determine whether the amount held to cover current and future claims from badly injured crash victims is correct. If the MCCA holds more in the reserve fund that the auditors conclude is needed, the difference would have to be returned to auto insurance policy holders. MCCA is the private entity that auto insurance companies must pay-into that provides reinsurance to cover unlimited personal injury claims above $555,000 per incident, as required by the state no-fault auto insurance law.
Referred to the Committee on Insurance
