Following a vote to increase driver’s insurance premiums this year, Governor Gretchen Whitmer called for an audit of the Michigan Catastrophic Claims Association (MCCA), who voted to increase the rate. The MCCA has increase the fee motorists pay to cover catastrophic medical claims annually for the last three years; 6.3% in 2017, 13% in 2018, and 14.5% in 2019. This has resulted in drivers paying more than twice as much as they did in 2008. The Department of Insurance and Financial Services has the legal authority to visit the MCCA and examine any and all documents to conduct a thorough review of the association’s operations, which was last conducted in 2015. Under Governor Whitmer’s direction, the department will conduct an accelerated financial examination into the MCCA.
The MCCA is a private non-profit unincorporated association that was created by the state Legislature in 1978 to provide unlimited lifetime coverage for medical expenses over $555,000 resulting from auto accidents.
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