LANSING – State Representative Derek Miller (D-Warren) today called for transparency and detailed financial and actuarial information from the Michigan Catastrophic Claims Association (MCCA). Miller introduced House Bill 4752 today, which would require the MCCA to publish this information annually on their website.

“Every vehicle owner knows that each year their policy requires a fee to be paid into the MCCA. This fee often changes year-to-year,” said Miller. “The law requires us, as drivers to pay this fee. Yet, how the MCCA determines this fee is a mystery. It’s time the public knows exactly how the MCCA manages this fund.”

The MCCA determines a fee that is added to every auto insurance bill each year and is then used to pay for the care of catastrophically injured victims of car crashes. However, the MCCA, created by the legislature in 1978 as a quasi-public/private organization, does not currently have to abide by Michigan’s Open Meetings Act or open its books to the public. The MCCA does release some financial information voluntarily. Still, no one knows exactly how the public funds are managed, or, most importantly, how it determines the yearly fee charged to vehicle owners.

Rep. Robert Kosowski (D-Westland) stated that “I appreciate Rep. Miller’s bill that will increase transparency. Actuarial disclosure is a modest ask for ensuring the accountability of the MCCA.”

Miller’s bill would change the way the MCCA operates by requiring an explanation of how it determines what the yearly fee will be. The MCCA would have to report on its website how much it expects to spend in claims, the actuarial tables used in determining why that amount is expected to be spent on each claim, and the forecasts, economic data and assessment reports used in establishing the annual fee. Miller believes that this information will help consumers understand the fee better. Furthermore, this will help legislators make better decisions in the future regarding the auto no-fault system to ensure its financial stability.

“We are all concerned with the high cost of car insurance in Michigan. It is my hope that this legislation will provide more transparency on the Catastrophic Claims Association, and to make sure that we know exactly where our money is going when we pay for insurance,” said Rep. Brad Jacobsen (R-Oxford)

“The public and rate payers should have a right to this information,” said Rep. Martin Howrylak (R-Troy). “The bill creates more accountability and transparency so that there is greater understanding and oversight of the annual MCCA assessment.”

Miller, pleased to have received Republican support, stated, “This is clearly not a partisan issue. What’s right is right. And until we have a fully transparent MCCA, we cannot make the best policy decisions when it comes to reforming auto no-fault and making insurance affordable for all vehicle owners. We need to ensure that critically injured accident victims receive the care they need to recover to the fullest extent and live a quality life,” said Miller. “Passing this legislation will help us make the right decisions on no-fault and do what is best for Michigan residents.”