Bayer pushes for transparency in driver catastrophic claims

Legislation would shine a light on Michigan Catastrophic Claims Association assessments 

LANSING — Sen. Rosemary Bayer (D–Beverly Hills) today issued a statement on the introduction of two bills that would bring greater transparency to assessments made by the Michigan Catastrophic Claims Association (MCCA).  

Senate Bills 301 and 302 come on the heels of Gov. Gretchen Whitmer’s call for an audit of the MCCA, following their decision to increase fees on drivers, and amid a controversial change to auto no-fault insurance this week that delivered no rate reduction or protection to consumers.  

“We need real solutions to protect drivers and provide relief that reduces consumer costs to be on the road,” Sen. Bayer said. “The changes we saw to Michigan’s auto no-fault insurance system this week fail to ensure savings for the average people and families of our state. My bills will deliver a catastrophic claims fee process that is fair, transparent and accountable to the people we should put first: The residents of our districts who hired us to be their voices.”  

The legislative package would make the MCCA subject to the Open Meetings and Freedom of Information Acts. It also would give the director of the Michigan Department of Insurance and Financial Services (DIFS) the power to reject changes to the annual MCCA assessment, and it would require that a member of the general public sit on the board. Additionally, the bills establish an annual audit of the MCCA by an independent certified public accountant chosen by the DIFS director. 

SB 301 and 302 have been referred to the Senate Insurance and Banking Committee.

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