2013 Senate Bill 709

Restrict no fault auto insurance gamesmanship

Introduced in the Senate

Dec. 4, 2013

Introduced by Sen. Roger Kahn (R-32)

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 personal injury policy (required under Michigan’s no-fault insurance law in order to register a vehicle) and then cancelling the coverage 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 Committee on Insurance