LANSING – House Speaker Pro Tempore Michael G. Sak (D-Grand Rapids) and State Representatives Richard LeBlanc (D-Westland) and Lee Gonzales (D-Flint Township) are planning to introduce legislation making the Michigan Catastrophic Claims Association (MCCA) more open and accountable to the public.
"Every year, the MCCA doles out hundreds of thousands of dollars to automobile insurance companies," Sak said. "These funds come from the insurance premiums of Michigan drivers. Michigan residents have the right to know how that money is being spent."
The legislation would:
- Expand membership on the association's board from 5 to 9, with at least one member representing insurance agencies and three members representing the general public.
- Require that board meetings be open to the public and held in compliance with the Open Meetings Act.
- Require that all documents prepared and used by the board be subject to the Freedom of Information Act.
- Require that an annual audit be preformed on the association, with the results being made available to the state Senate and House of Representatives.
"A required audit will reinforce accountability," Gonzales said. "It promotes transparency as well as consumer protection."
The MCCA, an unincorporated non-profit association, was created by the state Legislature in 1978 and reimburses auto no-fault insurance companies for each personal injury claim paid in excess of $400,000.
"Seeing that citizens have representation on this board is crucial," LeBlanc said. "It impacts so many people across the state."