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- Introduced by Rep. Kevin Cotter (R) on May 31, 2012, to require Michigan Catastrophic Claims Association (MCCA) auto insurance premium surcharges to be paid up front for the entire period of a policy, rather than pro-rated by installment payment, and prohibit an MCCA refund if the person cancels his or her insurance. This is intended to prevent individuals from purchasing a policy required under Michigan’s no-fault insurance law in order to register a vehicle, and then cancelling it after he or she gets the license plate or tab. MCCA is a reinsurance provider established by the no-fault law that covers unlimited vehicle accident medical claims above $500,000.
- Referred to the House Insurance Committee on May 31, 2012.
Comments
1) Re: 2012 House Bill 5706 (Restrict no fault auto insurance gamesmanship ) by path on June 22, 2012Took the words right out of my mouth.
This is intended to prevent individuals from purchasing a policy required under Michigan’s no-fault insurance law in order to register a vehicle, and then cancelling it after he or she gets the license plate or tab. However, it unfairly victimizes and punishes the individuals who have legitimate reasons to cancel their insurance.
Wouldn't a more prudent approach be to direct legislation toward those individuals that actually drive without insurance? And don't we already have laws in place that address this? Since I'm sure we do, this is simply a windfall generator for the auto insurance companies since the government requires us to purchase full no-fault auto coverage and the government is now proposing to restrict our ability to cancel the insurance when we no longer are required to have it.
Yet another short-sighted, ill-advised, piece-of-crap legislation to come out of the current self-serving "representatives" feeding at the pig-trough. How does one put that in a one or two word "tag''?
Introduced in the House on May 31, 2012
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