HB-4426 Summary

• Changes membership language in the Catastrophic Claims Association from "shall be" to "is" bound by the plan of operation, making membership binding upon authorization to write required insurance coverage.

• Establishes escalating liability thresholds for personal protection insurance claims, increasing from $250,000 (pre-July 1, 2002) to $500,000 (July 1, 2011-June 30, 2013), with subsequent biennial adjustments of the lesser of 6% or consumer price index rounded to nearest $5,000.

• Requires the commissioner to annually conduct and deliver a performance post audit of the association to the legislature's standing committees on insurance, with authority to employ independent accounting firms and examine association records and activities.

• Changes board governance language from "shall be" to "is" responsible for association operation, and maintains the board composition requirement of 5 directors appointed by the commissioner plus the commissioner as ex officio member.

• Clarifies that "ultimate loss" does not include claim expenses and is incurred on the date the loss occurs.