FOR IMMEDIATE RELEASE 
April 1, 2009
Contact: Jason Moon  517-335-1700

LANSING - Office of Financial and Insurance Regulation (OFIR) Commissioner Ken Ross today applauded the State House for passing several bills aimed at reforming the Michigan Catastrophic Association (MCCA) and strongly urged the State Senate to act immediately on the legislation. The House passed HBs 4426, 4427, 4429 and 4471. The package requires the MCCA to submit to a performance audit, comply with the Open Meetings Act and the Freedom of Information Act and restructure its board of directors.

“MCCA transparency will improve accountability which will foster public confidence,” Ross said. “Michigan drivers expect it and deserve it.” 

HB 4426:

• Requires the Commissioner to annually conduct a performance audit of the MCCA. The Commissioner could hire an independent auditing firm to conduct the audit, which would be provided to the legislature.  The audit would focus on whether the MCCA is compliant with its obligations under Michigan law.  

HB 4427 and HB 4471:

• Requires the MCCA to comply with the Open Meetings Act (OMA) and the Freedom of Information Act (FOIA) as if it were a public body. Requiring the MCCA to comply with the OMA and FOIA would increase the transparency of its deliberations, especially with regard to the setting of assessments, which are usually passed on to consumers by the MCCA's member insurers.

HB 4429:

• Expands the current MCCA board of directors from 5 to 9 members.  One member would represent insurance agents and three members would represent the general public. Having public members would put the interests of the Michigan driving public at the table when the MCCA makes decisions affecting the annual assessment.

The MCCA is a legislatively-created non-profit association that reimburses auto no-fault insurance companies for each Personal Injury Protection medical claim paid in excess of $460,000. The state’s auto insurance companies are assessed to cover the catastrophic medical claims occurring in Michigan. Those assessments are generally passed on to auto insurance policyholders. The 2009-10 assessment will cover costs over $460,000 and is $124.89 per vehicle, a $20 increase from the 2008-09 assessment of $104.58 per vehicle.