Under the provisions of the “Detroit Democratic Auto No-Fault Package,”
a commission would be created to track fraud and abuse; insurance companies
would be required to justify rate increases; stipulate that 80 percent of premiums
collected must be spent on policy holders; ban the consideration of credit history, education and occupation in
determining premiums; and institute other changes to the system. Additionally, it
would not cap lifetime medical benefits or limit what medical providers charge
insurers for auto-related injuries.
The bills are in direct response to the Republican-sponsored
legislation (House Bill 4612) that would cap medical coverage for catastrophically
injured car accident victims at $1 million after January 1, 2014. The bill
would also reduce insurance rates by $125 per vehicle in the first year after
the legislation is enacted and place limits on attendant care and home
modifications to accommodate injuries. House Bill 4612 is currently before the full House and the House Democrats have
voiced their unanimous opposition to the legislation.
A majority of the bills in
the Detroit Democratic Auto No-Fault Package are currently being
drafted. Once drafting is completed and the bills are introduced, they will be
assigned to a House committee for consideration.