November 24, 2008 - Michigan's Automobile and Home Insurance Consumer Advocate Melvin Butch Hollowell held a public hearing today in Marquette to hear from consumers and industry experts about the affordability of auto insurance and oversight of the industry. Co-chairs of the panel included Michigan Office of Financial and Insurance Regulation (OFIR) Commissioner Kenneth M. Ross and Michigan AFL-CIO President Mark Gaffney.
"True reform comes from citizens who are well-informed and engaged in a discussion about issues that affect them. Today's hearing provided incredibly important public testimony about ways to improve our 35-year-old no fault insurance law," Hollowell said. "This information will help shape the recommendations for reform I will submit to Gov. Jennifer M. Granholm at the end of the year in my annual report."
The purpose of the hearing was to receive testimony from consumers, industry experts and other stakeholders to address two basic questions: 1) Are Michigan's auto insurance rates affordable?, and 2) Has Michigan's de-regulation of the insurance industry allowed for adequate oversight of auto insurance rates?
Testimony from nationally recognized consumer expert Birny Birnbaum, Executive Director of the Center for Economic Justice in Washington, D.C., was entered into the record. Additional testimony was provided by Scott Hummel, Vice President of the Michigan Association of Insurance Agents, on behalf of the insurance industry.
"Michigan has some of the highest rates in the nation," Hollowell said. "It is critical that the public and key stakeholders have an opportunity to share their experiences, which will be helpful in developing recommendations on ways to get rates down and increase accountability."
Testimony received at the hearing will inform the Advocate's recommendations for auto insurance reform, to be contained in the Advocate's Annual Report to the Governor. The Executive Order creating the Advocate position requires the Annual Report to contain recommendations for administrative, legislative, or other corrective actions that would positively affect the interests of automobile insurance consumers.
As insurance consumer advocate, Hollowell meets with citizens, consumer groups, experts, and insurance industry representatives in developing recommendations for needed reforms. In her 2008 State of the State address, Gov. Granholm announced the creation of a new automobile and home insurance consumer advocate position to fight for affordable, reliable, and fair auto and home insurance in Michigan. In March, the Governor appointed Hollowell as the State Automobile and Home Insurance Consumer Advocate, charging him with conducting hearings, receiving testimony from consumers and submitting to the Governor an annual report on his findings and recommendations for administrative, legislative, or other corrective actions that would positively affect the interests of automobile insurance and home insurance consumers.
Hollowell works to educate consumers on how to protect themselves against predatory or illegal insurance practices and coordinate advocacy and educational efforts with non-governmental consumer advocacy entities and other organizations.
For more information visit www.michigan.gov/lowerratesnow.
Read more Michigan Department of Labor & Economic Growth press releases.
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