HB 4612 Summary

• Creates the Catastrophic Claims Association to provide indemnification for personal protection insurance (PPI) benefits exceeding insurance policy limits, with liability caps ranging from $250,000 to $530,000 depending on policy issue dates, and allows the association to wind down operations after December 31, 2013.

• Establishes a Catastrophic Claims Corporation as a tax-exempt nonprofit entity to assume liability for PPI benefits exceeding insurer limits for policies issued after December 31, 2013, with per-person limits up to $1,000,000 and a per-accident limit of $530,000.

• Modifies PPI coverage requirements to limit attendant care benefits to 56 hours per week at $15 per hour for family members and 16 hours per day for non-family members, with copay requirements after 30 days, and limits home modification and vehicle modification expenses to $50,000.

• Creates the Michigan Automobile Insurance Fraud Authority within the Michigan Automobile Insurance Placement Facility to fund law enforcement and prosecution programs designed to reduce automobile insurance fraud, with a 15-member board and operations ending January 1, 2019.

• Imposes an annual catastrophic claims fee on motor vehicle owners maintaining required insurance security, initially set by the director and administered by the corporation beginning January 1, 2015, with fees ranging from an initial amount plus $25 per vehicle.