CPAN Statement: Duggan lawsuit against State of Michigan points blame in the wrong direction, won’t guarantee lower auto insurance premiums

Cornack: Action needed to hold insurance companies accountable

Lansing — Today, Detroit Mayor Mike Duggan announced a lawsuit against the State of Michigan with a political aim of dismantling Michigan’s auto no-fault system, which would adversely affect citizens across Michigan. Coalition Protecting Auto No-Fault (CPAN) President John Cornack issued the following statement in response to the proposed lawsuit:

“Instead of holding insurance companies accountable for their discriminatory rate-setting practices and sky-high premiums, Mayor Duggan is once again blaming a law that has been a lifesaver for thousands of Michigan families over the last five decades.

“While we have not had the opportunity to review and analyze this filing, this issue of affordability and auto insurance is critical because it impacts every Michigan citizen. CPAN is deeply concerned about the lawsuit that aims to make sweeping and potentially devastating changes to Michigan’s auto no-fault law, a move that will allow insurance companies to sell worse plans with no guaranteed reduction in rates. This lawsuit is primarily a political stunt. Our courts are not charged with writing legislation, but upholding the law.

“CPAN agrees that under the landmark Michigan Supreme Court decision in Shavers v Attorney General that Michigan citizens have a constitutional right to fair and equitable auto insurance rates. However, we believe the proper remedy when that right is being violated is to enact legislation forcing insurance companies to utilize fair and equitable rate making procedures so that premiums are affordable for all Michigan citizens. The bipartisan, Fair and Affordable package of bills that will lower rates without threatening benefits, has been introduced in the Michigan Legislature. This bill package is stalled and has yet to receive consideration by House Committee Chair, Rep Lana Theis nor the House Leadership.It’s time to pass this package of bills and hold the insurance companies accountable.”

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The Coalition Protecting Auto No-Fault (CPAN) is a broad-based coalition of organizations representing consumer advocacy groups and health care professionals of all political persuasions. These organizations are united to preserve Michigan’s model no-fault auto insurance system and to make sure that the Michigan auto insurance industry kept the original no-fault promise it made to Michigan citizens when the No-Fault Act was passed in 1972.

 

 

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