As Michigan drivers continue to see gas prices spike, the Michigan Catastrophic Claims Association (MCCA) recently announced that the current assessment of $192 per year per vehicle will rise by $28 to $220 per vehicle, effective July 1.
The MCCA fund is used to cover catastrophic claims. When an insurer surpasses the threshold (currently set at $580,000 per claim), the insurer can then turn to the MCCA and seek reimbursement for benefits above and beyond the $580,000 threshold. The threshold is determined by the date of the accident.
Critics have long complained that because the MCCA is not subject to the Michigan Freedom of Information Act, there isn’t enough transparency, preventing the public from confirming or even challenging whether the fees are proportionate to the amount of losses actually paid or likely to be paid.
In light of the increase in the MCCA annual assessment per vehicle, insurers should update their systems and notify their agents of the new changes.
A partner in the firm's Bloomfield Hills office, Abe Barlaskar concentrates his litigation practice on defending insurers and personal line carriers, rental car companies, trucking companies, corporations and municipalities ...
Add a comment
SubscribeRSS Plunkett Cooney LinkedIn Page Plunkett Cooney Twitter Page Plunkett Cooney Facebook Page
- No Fault Liability
- Auto Liability
- Motor Vehicle Liability
- Trucking Liability
- Personal Injury Protection (PIP)
- Premises Liability
- Fraud Activity
- Judicial Estoppel
- Retail Liability
- Driver Exclusion
- insurance policy
- Cargo Liability
- Risk Management
- Public Policy
- Governmental Immunity
- Environmental Legislation
- Environmental Regulation
- Medicare Issues
- Amidst Pandemic, Work-Loss Benefits Increase Under Michigan No-Fault Act
- Defending Against Fraudulent Claims Following Michigan Supreme Court’s Ruling in Meemic v Fortson
- Michigan Expands Chiropractic Coverage Under No-Fault Act
- Arbitration is a Road Less Traveled but one Worthy of Consideration for UM/UIM Claims
- Truck Driver’s Bodily Injury Claim barred by his Bankruptcy Case
- Michigan Catastrophic Claims Association Slashes 2020-2021 Fee Assessments
- What the No-Fault Act Giveth the No-Fault Act can Taketh Away
- Appellate Court Upholds Dismissal of Vacationer’s PIP Claims for Fraud
- Court Reaffirms One Year Back Rule, Rejects Use of Consent to Treat Forms as Assignments
- Once Again, More Fees for Michigan Drivers