SB 818 Summary

• Creates the Catastrophic Claims Association to provide personal protection insurance (PPI) benefits exceeding individual insurer limits, with thresholds increasing from $250,000 (pre-2002) to $530,000 (2013+) for motor vehicle accidents, and wind-up procedures once final liabilities are paid.

• Establishes a Catastrophic Claims Corporation as a nonprofit entity authorized to issue policies and collect annual catastrophic claims fees from vehicle owners to cover PPI benefits above insurer limits, with governance by a 7-member board appointed by the governor.

• Limits family/household member attendant care to 56 hours per week at $15.00 per hour (adjusted every 3 years for inflation) under PPI coverage, though insurers may contract for higher rates and hours.

• Creates the Michigan Automobile Insurance Fraud Authority with a 15-member board representing insurers, law enforcement, prosecutors, and the public to fund fraud prevention programs through assessments on insurers; authority dissolves January 1, 2019 with assets transferred to the department of state police.

• Implements medical provider payment reforms by capping reimbursement rates to worker's compensation fee schedules (R 418.10101-418.101503) for treatment and services covered by PPI, effective for treatment rendered after the amendatory act's effective date.