January 24, 2012
By: Jana Bell
A group in Michigan has filed a lawsuit against the Michigan Catastrophic Claims Association so information regarding the state's no-fault auto insurance system will be made public.
The Coalition Protecting Auto No-Fault says that the state should need to prove that the current no-fault insurance system is broken before making significant changes to current car insurance regulations.
A pair of bills being considered would eliminate available lifetime medical benefits, which some lawmakers say is necessary given the system's financial problems.
"Every Michigan driver is required by law to pay into the MCCA," said CPAN general counsel George Sinas. "It's the public's money and the public has a right to know all the facts about how their money is managed and whether what the public pays in premiums is adequate to handle future claims."
The MCCA says that a 1988 exempts it from the state's Freedom of Information Act, and that releasing the data wouldn't be useful to the public.
The fund was created back in 1978 to pay for personal injury auto insurance claims greater than $500,000. Each driver pays about $140 per year for the plan.
Related Articles:
- Teens admit to texting while driving despite risks May 08, 2012
- NY regulators propose new insurance rules to reduce fraud May 03, 2012
- More auto insurance shoppers willing to switch May 01, 2012
- Survey finds teens believe they are safe drivers despite distractions April 27, 2012
- Returning soldiers have higher accident risks April 24, 2012
