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CPAN President John Cornack

CPAN President John Cornack Talks with Frank Beckmann About No-Fault Fraud

The Detroit Free Press posted a story this week detailing a complex scheme between Southeast Michigan doctors and lawyers to illegally profit from Michigan’s no-fault system. The report is based on an affidavit from Dr. Ram Gunabalan, which details a coordinated series of kickbacks between attorneys and health care providers treating auto accident victims. CPAN President John Cornack recently sat down with WJR radio host Frank Beckmann to discuss the Free Press reports and why stopping auto insurance fraud is … read more

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CPAN Members Outraged by Revelations of Auto Insurance Kickback Scheme, Offer Solutions to Stop Fraud

LANSING – The Coalition Protecting Auto No-Fault (CPAN) responded today to reports by the Detroit Free Press detailing a complex scheme between Southeast Michigan doctors and lawyers to illegally profit from Michigan’s no-fault system. “The allegations in this report are very serious,” said CPAN President John Cornack. “If found to be true, this type of behavior damages the entire no-fault system and those who work so hard to protect it.” The report is based on an affidavit from Dr. Ram … read more

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Covenant Medical Center v. State Farm: A Disastrous Destabilization of Michigan’s Auto No-Fault System

By:  CPAN Legal Team On May 25, 2017, the Michigan Supreme Court issued a landmark decision in the case of Covenant Medical Center, Inc., v. State Farm Mutual Automobile Insurance Company.  In a 5-1 decision, the Court took away significant legal rights of healthcare providers who care for auto accident victims.  The Court held that healthcare providers do not have a right under the No-Fault Act to sue no-fault insurers for services rendered to patients.  As the Court stated:  “We … read more

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Michigan Supreme Court Ruling Pits Patients Against Providers When Insurers Refuse to Pay

LANSING – The Michigan Supreme Court yesterday ruled in a landmark decision that will prevent medical providers from suing insurance companies on behalf of auto accident patients for payment of services rendered. The case, Covenant Medical Center v State Farm Mutual Auto Insurance, is expected to result in a windfall of profits for insurance companies and will greatly increase lawsuits in Michigan’s no-fault system while leaving patients on their own without a safety net. “This decision is a nightmare for … read more

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CPAN Responds to Michigan Supreme Court Refusal to Hear No-Fault Transparency Case

LANSING – Michigan Supreme Court has decided not to hear the Coalition Protecting Auto No-Fault’s case that would have shed light on the state’s auto insurance system. CPAN had sought to open the Michigan Catastrophic Claims Association’s rating practices to public scrutiny via the state’s Freedom of Information Act. “This is a very disappointing day for those who are committed making Michigan’s auto insurance system more affordable. Every Michigan driver pays into the MCCA the only way to determine whether the … read more

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CPAN announces reforms to fix Michigan’s no-fault system, protect accident victims

Reforms will improve auto insurance efficiency, transparency, fairness and accountability Lansing, Mich. – Medical providers, brain injury advocates and legal experts joined the Coalition Protecting Auto No-Fault (CPAN) today to reveal the organization’s proposals to bring much needed efficiency, transparency, fairness and accountability to Michigan’s auto no-fault system. “Michigan’s no-fault laws are critical to the care and rehabilitation of tens of thousands of auto accident victims every year, but we also know the system is not perfect. There are a … read more

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Without Transparency, Michigan Catastrophic Claims Association is Taxation Without Representation

LANSING – Coalition Protecting Auto No-Fault (CPAN) President John Cornack used today’s tax filing deadline to take the Michigan Catastrophic Claims Association (MCCA) to task for practicing “taxation without representation.” The MCCA is a private non-profit organization created by Michigan Legislature in 1978. It serves as a reinsurance fund that reimburses auto insurance companies for personal injury claims exceeding $545,000. Each Michigan driver currently is required to pay $160 annually per vehicle to fund the MCCA. In June, that fee … read more

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CPAN Calls on State of Michigan to Investigate Auto Insurance Redlining in Detroit

ProPublica Story Shows Why Michigan Needs to Investigate Whether Auto Insurance Companies are Engaged in Redlining LANSING – The independent nonprofit journalism organization ProPublica recently published a report examining auto insurance premiums and payouts in California, Illinois, Texas and Missouri. The report finds that insurers charged as much as 30 percent more for premiums in zip codes where most residents were minorities, compared to white neighborhoods with similar accident risks or costs. ProPublica notes that many auto insurers included in the … read more

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Group Launched to Fight for Fair Auto Insurance Rates in Detroit

Several community leaders in Detroit joined together today to raise their voices against Detroit’s high auto insurance rates. Spearheaded by former State Rep. Brian Banks, the Detroit Alliance for Fair Auto Insurance launch included Detroit City Council President Brenda Jones, Spirit of Love Church Pastor DaRell Reed and auto accident survivor Saundra Gay. The new organization will seek to educate Detroit residents about Michigan’s auto insurance system and empower them to be advocates for fair auto insurance reforms at the … read more

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CPAN Praises No-Fault Transparency Legislation

Sen. Steve Bieda (D-Warren) introduced legislation today that would bring much needed transparency to Michigan no-fault auto insurance system. The legislation, Senate Bills 240 and 241, requires the Michigan Catastrophic Claims Association (MCCA) to abide by Michigan’s Open Meetings and Freedom of Information (FOIA) acts.

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