HB 4080 Summary

• Establishes a catastrophic claims association as an unincorporated nonprofit organization to provide indemnification for personal protection insurance losses exceeding specified thresholds, with thresholds increasing from $250,000 (pre-July 1, 2002) to $555,000 (July 1, 2017 to June 30, 2019).

• Beginning July 1, 2019, requires biennial increases to the indemnification threshold on July 1 of each odd-numbered year by the lesser of 6% or the Consumer Price Index, rounded to the nearest $5,000.

• Mandates independent actuarial examinations every 5 years starting July 1, 2020, to assess the association's actuarial assumptions, investment strategy, expenses, and actual liability over the preceding 5-year period.

• Requires the director of the department to order refunds of any surplus determined by actuarial examination, to be returned to members proportionally based on premiums paid, then refunded by members to insured persons within 30 days on an equal per-vehicle basis.

• Updates terminology throughout the statute to replace "commissioner" with "director of the department" and modernizes language regarding board operations, plan of operation approval, and regulatory oversight.