House Bill 4654 Summary

• Establishes the catastrophic claims association as an unincorporated nonprofit association to provide indemnification for personal protection insurance losses exceeding specified thresholds in Michigan.

• Increases the catastrophic claims threshold from $555,000 (effective July 1, 2017-2019) to be adjusted biennially starting July 1, 2019 by the lesser of 6% or the consumer price index, rounded to the nearest $5,000.

• Requires the association to disclose annually on its website within 15 days of charging premiums all data used in computing premiums, including actuarial computations, loss projections, discount rates, economic assumptions, and supporting documentation.

• Clarifies the association's governance structure with a 5-member board of directors (plus a non-voting ex officio director from the insurance department) and specifies that board members contributing at least 40% of total premiums must be included.

• Makes various technical updates replacing "commissioner" with "director of the department" and updating language regarding plan approval, member participation requirements, and statutory cross-references.