MI HR0228

Requests the Michigan Department of Treasury to conduct a financial review of the Michigan Catastrophic Claims Association (MCCA) and consider appointing an emergency financial manager.

MCCA is a state-created insurance fund that reimburses no-fault auto insurers for catastrophic injury benefits exceeding $500,000, with costs spread among all Michigan drivers.

MCCA rates increased from $5.60 to $145 per vehicle since 2000 (2,489 percent increase), with an additional 21 percent increase to $175 per vehicle effective July 1, 2012, while accident frequency and injury severity have declined.

MCCA maintains $13.7 billion in reserves that grow annually, but the association is not required to disclose finances publicly or comply with the Open Meetings Act and Freedom of Information Act.

Directs that a copy of the resolution be transmitted to the State Treasurer.