Michigan No-Fault Insurance Changes Move To House Floor

The House Insurance Committee voted Thursday to send changes to Michigan’s no-fault insurance law to the full House of Representatives for consideration. While Michigan’s current law provides for unlimited lifetime medical coverage for expenses resulting from an auto accident, the legislation, House Bill 4936 sponsored by Committee Chair Representative Pete Lund (R-Shelby Township), allows individuals to choose insurance with $500,000, $1 million or $5 million in coverage.

The measure passed on a 9-7 vote after two weeks of very intense committee testimony, filling the hearing room and overflow rooms on multiple occasions. The issue has members from both sides of the aisle expressing concerns, and advocates in some cases crying foul.

One of the most contentious issues debated is the concern over transparency by the Michigan Catastrophic Claims Association (MCCA). The MCCA reimburses auto insurance companies for personal injury protection claims of more than $500,000 and would be on the verge of shutting down if it were a private entity, according to testimony from Office of Financial and Insurance Regulation (OFIR) Commissioner Kevin Clinton.

posted by PAA Online , Friday, October 14, 2011 10:36 AM
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