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As
Michigan
sits on
billions
of
dollars
of
financial
surplus
in its
Catastrophic
Claims
Association
Funds,
the
governor
is
returning
some of
the
money
paid by
people
who have
auto
insurance. |
| |
Michigan
governor
announces
$3
billion
in
refunds
for
Michigan
drivers
Michigan
Catastrophic
Claims
Association
adopts
the
governor’s
plan to
lower
costs
for
Michiganders
by
delivering
$400
refund
checks
per
vehicle
to
drivers.
LANSING,
MI - In
a move
that
will put
money
back
into the
pockets
of
Michigan
drivers,
Governor
Gretchen
Whitmer
and the
Michigan
Department
of
Insurance
and
Financial
Services
(DIFS)
today
announced
that the
Michigan
Catastrophic
Claims
Association
(MCCA)
has
acted
upon the
governor’s
call to
return
surplus
funds to
Michigan
policyholders
and will
immediately
begin
the
process
of
refunding
$400 per
vehicle
to
Michigan
drivers.
Drivers
are
expected
to
receive
checks
in the
second
quarter
of 2022.
“These
refunds
and the
recently
announced
statewide
average
rate
reductions
are
lowering
costs
for
every
Michigan
driver,”
said
Governor
Whitmer.
“Michiganders
have
paid
into the
catastrophic
care
fund for
decades,
and I am
pleased
that the
MCCA
developed
this
plan so
quickly
after
unanimously
approving
my
request
to
return
surplus
funds to
the
pockets
of
Michiganders.
We are
working
together
to put
Michigan
drivers
first,
and I am
directing
DIFS to
ensure
that the
MCCA and
Michigan’s
auto
insurance
companies
accurately,
fairly,
and
promptly
issue
these
refunds.”
“The
Governor
and I
called
for
these
refunds
because
we
recognize
that
this
surplus
money
belongs
to
Michigan
drivers,
and we
need to
put it
back in
their
pockets,”
said Lt.
Governor
Gilchrist.
“These
refunds
are a
major
win for
all
drivers—especially
Detroiters—who
have
paid the
highest
insurance
rates in
the
nation
for
decades.
There is
still
work to
be done,
and
Governor
Whitmer
and I
will
continue
to take
action
in the
best
interest
of
Michigan
drivers.”
“DIFS
stood
with
Governor
Whitmer
in
calling
upon the
MCCA to
return
surplus
funds to
Michiganders
with
auto
insurance,
and we
applaud
the MCCA
for
taking
the
necessary
next
steps to
deliver
the
largest
refund
possible
to
drivers
while
maintaining
the
viability
of the
fund,”
said
DIFS
Director
Anita
Fox. “In
the
coming
months,
DIFS
will
work to
ensure
that
refund
checks
are
issued
to
Michigan
consumers
as
quickly
as
possible.”
In
November,
Governor
Whitmer
called
on the
MCCA to
issue
refund
checks
to
consumers
from its
projected
$5
billion
surplus,
which
the MCCA
then
voted
unanimously
to
issue.
The
surplus
and
refunds
are
possible,
in part,
due to
the
historic
bipartisan
auto
insurance
reform
signed
into law
by the
Governor
in 2019.
The
MCCA’s
analysis
determined
that
approximately
$3
billion
of the
surplus
could be
returned
to
policyholders
while
ensuring
continuity
of care
for auto
accident
survivors.
The
refund
plan
submitted
to DIFS
Monday
by the
MCCA
will
return
money to
every
Michigander
with an
auto
insurance
policy
in force
as of
11:59
p.m. on
October
31,
2021.
Eligible
consumers
do not
need to
take
action
in order
to
receive
a
refund.
The
surplus
funds
will be
turned
over by
the MCCA
to the
insurance
companies
operating
in
Michigan
by March
9, 2022,
and the
insurers
will be
responsible
for
issuing
checks
to
eligible
policyholders.
DIFS
will
direct
insurers
to issue
refund
checks
to
consumers
as
expeditiously
as
possible,
but in
no event
later
than 60
days
after
the
transfer
of
funds.
That
deadline
and
additional
guidance
to
insurers
will be
detailed
in a
bulletin
to be
issued
by DIFS
in the
near
future.
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