MI HR0196

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

MCCA annual rates increased from $5.60 to $175.00 per vehicle since 2000 (over 2,489 percent), with a 6% increase effective July 1, 2013 raising rates to $186.00 per vehicle.

MCCA maintains over $14 billion in reserves while accident frequency and injury severity have declined annually, yet the organization is not subject to Open Meetings Act or Freedom of Information Act requirements despite affecting all Michigan drivers.

Resolution argues MCCA projected $2 billion deficit claims are not supported by investment portfolio growth (up 17.27% year-to-date in line with Standard and Poor's index) and questions whether rate increases are justified under MCL 500.3104(7)(d).

Transmit copy of resolution to State Treasurer.