Todd Berg of Michigan Auto Law speaks to Lester Graham on the healthy financial state of the Michigan Catastrophic Claims Association, and why that should equal savings for Michigan drivers
Our blog post about 2015 being the time to reduce the Michigan Catastrophic Claims Association assessment that all drivers are required to pay as a portion of their No Fault insurance caught the attention of Michigan Radio’s Lester Graham.
The MCCA is private, nonprofit association made up of a five-person board who manage the fund that compensates auto insurance companies when a No-Fault claim exceeds $530,000. Auto insurance consumers populate the fund by paying an MCCA assessment, which is a small part of the No Fault insurance premium.
Currently, the MCCA’s assessment is $186, where it has remained for the past two fiscal years.
The fee has been rising every year since 2008. Given that investments in the stock market have bolstered the fund, the deficit is down and reserves are up, attorney Todd Berg of Michigan Auto Law told Michigan Radio that it’s time for the MCCA to lower the assessment:
“Under the circumstances here where the finances are looking very strong and robust for the MCCA, this would be a good time to maybe pull back.”
You can read the full story here: “Lawyers argue no-fault insurance fee should be lower”