HB 6118 Summary

• Amends the Catastrophic Claims Association statute (MCL 500.3104) to update language throughout, including replacing "shall" with "must" and modernizing terminology.

• Increases the catastrophic claims threshold from $500,000 to $555,000 for motor vehicle accident policies issued or renewed during July 1, 2017 to June 30, 2019, with biennial adjustments thereafter based on the lesser of 6% or the Consumer Price Index.

• Establishes that actuarial calculations for the association must assume a life expectancy of 90 years of age for members and the association.

• Changes references from "commissioner" to "director of the department" throughout the statute regarding oversight and approval authority.

• Renumbers and reorganizes multiple subsections of the plan of operation requirements, while maintaining substantive provisions regarding board composition, membership, premium calculations, and claim procedures.