Michigan Catastrophic Claims Association Refunds FAQ

All vehicles that were insured as of 11:59 p.m. on October 31, 2021 are eligible to receive a refund if the vehicle was covered by a policy that meets the minimum insurance requirements for operating a vehicle on Michigan roads (See MCL 500.3101 and MCL 500.3103).

A refund check or an ACH deposit will be issued to eligible Michigan policyholders. If you are eligible to receive a refund, it will be sent to you by your insurance company and you will not have to do anything to receive it.

The MCCA has announced that the refund will be $400 per eligible car or motorcycle. For example, if you had auto insurance policies for two cars as of 11:59 p.m. on October 31, 2021, you will receive a refund of $800. The refund is $80 per historical vehicle.

The surplus funds will be turned over by the MCCA to the insurance companies operating in Michigan by March 9, 2022, and the insurers will be responsible for issuing checks or ACH deposits to eligible policyholders. DIFS will direct insurers to issue refund checks or ACH deposits to consumers as expeditiously as possible, but in no event later than 60 days after the transfer of funds.

If you are eligible to receive a refund and do not receive your check by the deadline, contact your insurance company. If you have questions or concerns that cannot be resolved directly with your insurer, contact DIFS by calling Monday through Friday 8 a.m. to 5 p.m. at 833-ASK-DIFS (833-275-3437) or emailing autoinsurance@michigan.gov.

Yes, motorcycles and RVs are eligible for the $400 refund if the motorcycle or RV was covered by a policy that meets the minimum insurance requirements for operating on Michigan roads (see MCL 500.3101 and MCL 500.3103).

No. Trailers are not subject to the MCCA assessment and therefore are not eligible for the refund.

Yes. All qualified vehicles are eligible to receive a refund regardless of the PIP medical coverage level chosen on the policy.

No. In order to qualify, policies must meet the minimum insurance requirements for operating a vehicle on Michigan roads (see MCL 500.3101 and MCL 500.3103). Storage policies do not qualify.

Historic vehicles are only charged 20% of the annual MCCA assessment due to their limited allowable use. Therefore, drivers will receive a refund of $80 for each historic vehicle they had insured as of 11:59 p.m. on October 31, 2021.

No. Only vehicles that were insured as of 11:59 p.m. on October 31, 2021 will qualify for a refund.

This refund does not impact the care auto accident survivors are entitled to under their auto insurance policy. The MCCA's actuarial analysis determined that approximately $3 billion of the surplus could be returned to policyholders while ensuring continuity of care for auto accident survivors.

As of June 2021, the MCCA catastrophic care fund had more than $27 billion in assets with estimated liabilities of $22 billion.

Consumers can contact the Michigan Department of Insurance and Financial Services for more information at 833-ASK-DIFS (833-275-3437) Monday through Friday from 8 a.m. to 5 p.m.

To file a complaint, visit Michigan.gov/DIFScomplaints or email DIFSComplaints@michigan.gov.

No. Insurance companies must issue the refund to policyholders in the form of a check or ACH transfer.

You should contact the Michigan Department of Insurance and Financial Services at 833-ASK-DIFS (833-275-3437) Monday through Friday from 8 a.m. to 5 p.m. To file a complaint, visit Michigan.gov/DIFScomplaints or email DIFSComplaints@michigan.gov.

The insurer that insured your vehicle on October 31, 2021, at 11:59 p.m., will be responsible for issuing the refund.

Your insurance company will send your refund via check or ACH deposit to the address or bank account it has on record. To prevent delays in getting your refund, if you have moved, you should contact your insurance company to ensure it has your current information.

The MCCA refunds are generally not taxable for most Michiganders. People who deducted their auto insurance premiums as a business expense may be required to include all or a portion of this refund as income on their tax returns. Please consult your insurance agent or tax professional if you have questions about your specific circumstance.

For additional information, see Michigan Department of Treasury Administrative Bulletin RAB 2021-23.

In order to return the surplus to insurance companies, the MCCA must sell investment securities, collect data, ensure the accuracy of the amount of the refund, and securely transfer funds. Insurance companies also need to collect data, develop internal processes and procedures, and ensure the refunds are issued accurately and securely.

DIFS has directed insurers to issue refunds as expeditiously as possible, but in no event no later than May 9, 2022.

It is important to never give out personal information including address, birthdate, Social Security Number, account numbers, or passwords over the telephone. If you receive this type of call in connection with your MCCA refund, contact your insurance company directly to verify the request for information and inquire how you can provide the information securely if it is necessary.

Fleet vehicles are eligible for the MCCA refund. The refund amount will depend on how the vehicles are identified in the fleet's auto insurance policy:

• For vehicles that are individually identified in the policy, such as by VIN or license plate number, the full MCCA refund of $400 per vehicle will be given for each vehicle.
• For policies that are written on a per-plate basis, such as those used by car dealerships with license plates that are moved from car to car as needed, the MCCA refund of $400 will be calculated and sent on a per-plate basis.
• For commercial fleet policies that are written on a gross-receipts basis, or for other types of policies where individual vehicles cannot be identified, the refund will be calculated as 135% of the applicable in-force commercial auto PIP written premium related to those policies.

For more information about how your commercial policy is written and how your refund will be calculated, contact your insurance agent or company.

The MCCA established a process for the purpose of issuing refunds, and determined 11:59 p.m. on October 31, 2021 as the date of record to return surplus funds to those policyholders who had vehicles insured in Michigan as of that moment.