MCCA Transparency Case

Make the Michigan Catastrophic Claims Association (MCCA) accountable to Michigan’s insured drivers.

  • The MCCA provides assessments on each vehicle owned that Insurance policy holders and ratepayers must pay each year. This money goes into the MCCA fund, and is used for reimbursement of insurance companies for medical expenses beyond the $545,000 that is covered by an individual insurance policy.
  • This case is about far more than auto no-fault insurance. CPAN believes that having open access to the MCCA’s financial records is vital to understanding Michigan’s auto no-fault system. But at its core, this case has broad implications for the openness and transparency of Michigan’s government overall.
  • Currently, the MCCA is exempt from Freedom of Information Act (FOIA) requests. They set rates every year that effect all of us and have a significant impact on the amount we pay for our auto insurance policies in Michigan – yet we, the affected ratepayers, cannot see the process for determining what rates we will pay.

The Michigan Court of Appeals determined the MCCA is a public body, and public bodies are subject to FOIA laws.

  • In the case of the MCCA, they have immunity from FOIA requests through an obscure statute buried in a provision of our insurance law. No amendment was made directly to the FOIA law itself to create this exemption.

How can policy makers responsibly approach legislation or reform our auto no-fault laws without access to the financial records of the MCCA? 

  • It is critical that the financial records and rate setting metrics of the MCCA be available to policy makers. They must have this information in order to determine the sustainability of the fund and how rates are set before creating legislation that reforms our current auto no fault laws.
  • The ability to amend current legislation without directly changing the law has far reaching and dire consequences. Imagine if the legislature could change existing laws not by amending the actual law, but by including obscure statutes in unrelated legislation. This lack of transparency would detrimentally impact how our government operates and how the public is informed.