As anticipated, Governor Snyder
indicated he will create a new department to handle insurance and financial
matters. The new department, made by splitting the Office of Financial and Insurance Regulation (OFIR) from the Department of Licensing and Regulatory
Affairs (LARA), will also help promote the insurance
industry, which has become more prominent in Michigan.
The new Department of Financial and Insurance
Services is receiving praise from both sides of the
no-fault auto insurance debate. Insurance advocacy groups see
potential for additional powers to the new Department Director, Kevin Clinton,
not granted him when he was OFIR commissioner.
They believe it will allow the Director to
take a more active role in the promotion of the insurance industry in terms of
trying to grow the financial and insurance sector in the state. The Coalition Protecting Auto No-Fault sees the move as a
chance to reduce rates without changing the system.
The Governor also called for the
creation of an Insurance and Fraud Prevention Authority. The
authority will partner with state and local law enforcement and the insurance
industry to provide education, training and enforcement programs to reduce
incidents of insurance fraud. The authority will be
funded through a $2 per vehicle assessment on insurance companies.