No-Fault Advocates Push for Transparency in Claims Costs

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The Coalition Protecting Auto No-Fault (C-PAN) is pushing its case for information against the Michigan Catastrophic Claims Association (MCCA) all the way to the Michigan Supreme Court. The case could help consumers understand the cost of Michigan’s no-fault insurance.

The MCCA is a state-regulated organization made up of every no-fault insurance provider in the state. It provides coverage in the most serious injury accident cases, as a kind of over-flow when medical costs rise over $530,000 in damages.

To pay for that coverage, the MCCA charges each insurer in proportion to the number of insured vehicles they cover. The no-fault insurers then divide up the cost and charge that amount to each insured motorist. Right now, the cost is $186 per vehicle .

C-PAN says it should be entitled to information on how that number is calculated under the federal Freedom of Information Act. But the insurance industry says the pertinent financial data is available online.

A judge in Ingham County Circuit Court agreed with C-PAN, ruling that Michigan citizens had a right to know how their rates were calculated. But earlier this year the Michigan Court of Appeals overturned that ruling saying that FOIA allowed the government to exclude records from disclosure, and that the statute creating the MCCA did just that.

Now it will be up to the Michigan Supreme Court to settle the issue. If it sides with the Court of Appeals, the court will close the door on consumers’ ability to challenge their rates or the underlying MCCA premium if it gets too high. Without the ability to see how that number is calculated, there will be no way for advocates like C-PAN to keep the industry in check.

The experts at Christensen Law are on top of the changes happening in no-fault law. They know the trends and can help protect you or your loved ones from the sometimes manipulative practices of the insurance companies. If you know someone who has been in a motor vehicle accident, contact David Christensen and his team today for a free consultation.