Mid-Michigan lawmaker outraged by sudden auto insurance rate hike
State Rep. Brett Roberts, of Charlotte, is calling for the legislature to look into the books of the Michigan Catastrophic Claims Association (MCCA), in the wake of a 13-percent increase per vehicle slated to begin on July 1, 2018.
“The Catastrophic Claims Association was established in statute,” Roberts said. “There’s no logical reason that the legislature should be barred from seeing the details to help protect ratepayers across the state.”
The MCCA was established in Michigan’s Insurance Code, specifically Act 218 of 1956. Those that write insurance policies in the state are members of the association, and they are the sole administrators of the collected dollars.
“The fund has over $20 billion in it, and it is still growing. Now we are led to believe that there is not enough money to match their potential liabilities. If $20 billion is insufficient, they shouldn’t have any trouble proving it to us,” Roberts continued. “To effectively reform the insurance system in Michigan, we need to look at legislation that includes transparency for the MCCA, rather than ignores it.”
The Michigan Catastrophic Claims Association is not currently subject to state government oversight, including the Freedom of Information Act or the Open Meetings Act.