To replace the Michigan Catastrophic Claims Association (MCCA) with a new state authority that would provide reinsurance to individual auto insurance companies for personal injury claim amounts that exceed above $545,000 per incident. The MCCA is a private entity created by the original no-fault law, which also mandated that all drivers have unlimited personal injury protection coverage (PIP). The bill would also place price controls on attendant care and other medical services provided to injured individuals under this PIP, and expand the duties of a state automobile theft prevention authority to include insurance fraud related PIP benefits, paid for by $21 million in assessments (taxes) on insurers.   Official Text and Analysis.

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

To mandate that auto insurance companies cut their priced by at least 20 percent.

To mandate that auto insurance companies cut their priced by at least 40 percent.

To mandate that auto insurance companies cut their priced by at least 30 percent.

To mandate that auto insurance companies cut their priced by at least 20 percent.

To mandate that auto insurance companies cut their priced by at least 10 percent.

To mandate that auto insurance companies cut their priced by at least 5 percent.

To prohibit insurers from spending more than 15 percent of the personal injury coverage premium revenue on expenses that are not insurance claims.

To make the MCCA and its successor organization subject to the state's open records law. The Senate-passed version of the bill does subject the successor organization to this law.

To prohibit auto insurance policies from basing premium prices on a person’s credit history or lack of credit history.

To prohibit auto insurance policies from basing premium prices on a person’s education level.

To require that when the MCCA is finally shut down after all its liabilities have been extinguished any leftover money must be rebated to auto insurance customers.

To strip out a modest appropriation in the bill, which among other things makes the bill not subject to referendum under a 2001 Supreme Court ruling.

To require insurance companies to testify before the legislature if there is more than a 15 percent variance in premium prices between customers in a particular zip code and the state average.

To remove a provision that prohibits medical providers from charging an auto insurer more than the average price the provider charges regular customers for a medical service.

To eliminate price controls the bill would establish for personal attendant care of injured individuals.

To establish that the provisions of the bill are prospective only.

To replace the Michigan Catastrophic Claims Association (MCCA) with a new state authority that would provide reinsurance to individual auto insurance companies for personal injury claim amounts that exceed above $545,000 per incident. The MCCA is a private entity created by the original no-fault law, which also mandated that all drivers have unlimited personal injury protection coverage (PIP). The bill would place some price controls on medical services and attendant care provided to injured individuals under this PIP, with monthly copays on the latter. It would also expand the duties of a state automobile theft prevention authority to include insurance fraud related PIP benefits, paid for by $21 million in assessments (taxes) on insurers .

With the recommendation that the substitute (H-3) be adopted and that the bill then pass.