Lawsuit Filed Against The Michigan Auto Insurance Fund

The Coalition Protecting Auto No-Fault (CPAN) is opposed to changes that are currently being reviewed and has filed a lawsuit against the association that is required to pay benefits under current no-fault auto law. The changes would get rid of the unlimited cap and make auto insurance available in denominations of $250,000, $500,000, $1,000,000, or $5,000,000. The Michigan Casastrophic Claims Assossiation (MCAA) denied a request made by CPAN to reveal information that would give a clear picture about the money that has been paid into the system and how it is being dispersed. The MCAA claims that Michigan No-Fault law which has no cap on benefits is crippling the organization and will result in insolvency or bankruptcy.......right.

I find it incredibily hard to believe that the major insurance companies are going insolvent because of no-fault law in Michigan where there is additional funding provided by Michigan residents. Michigan residents pay an additional fee of $140 every year to help fund the MCAA. The MCAA then reimburses Michigan auto insurance companies on claims that are over $500,000. If the financials are as bad as the MCAA claims, why not just share the information with the public? This seems like the most effective way to raise awareness about their financial situation, and it would help convince me, I just don't believe it. They don't want to know the truth about their financial situation!!!! I watch TV regularly and a nice chunk of the ads are created by insurance companies indicating to me they aren't exactly hurting. Have you seen the new Delta Dental building on Okemos Rd. next to the middle school? It certainly doesn't seem like the insurance industry is headed towards insolvency to me.

At The Clark Law Office, we are proud to say we represent individuals, not insurance companies. We fight against the insurance companies to help you receive the compensation that you deserve after your Michigan auto accident. Don't be taken advantage of by the insurance companies, call us today to receive personalized service regarding your case. Free Consultation with an experienced Michigan Auto Accident Attorney (517) 347-6900