MI HB5103

Establishes the Catastrophic Claims Association as an unincorporated, nonprofit association that all insurers writing personal protection insurance in Michigan must join as a condition of transacting business.

Provides 100% indemnification for ultimate losses under personal protection insurance coverages exceeding specified thresholds, with thresholds ranging from $250,000 (pre-July 2002) to $555,000 (July 2017-June 2019) and increasing biennially by the lesser of 6% or the consumer price index.

Creates a 5-member board of directors (plus the director of the Department of Insurance as a non-voting ex officio member) responsible for operating the association, with board members representing at least 40% of total premiums.

Prohibits the association from interfering with the adjustment or settlement of allowable expense benefit claims unless the association first obtains a court order based on a finding that the member insurer is handling the claim in a clearly irresponsible, incompetent, or illegal manner.

Prohibits members from adjusting, denying, or reducing claims based on whether the association will reimburse them, with violations constituting an unreasonable refusal to pay under the insurance code.