Politics & Government
12:26 pm
Wed January 23, 2013

Body that manages state’s catastrophic claims fund fighting against court ruling

Lawmakers are getting ready to consider changes to the state’s no-fault auto insurance law.

At the same time a court battle over a fund that reimburses auto insurance companies for large claims continues.

When you file a personal injury claim in Michigan of more than a half-million dollars, your auto insurance company gets reimbursed by a state-created fund. It’s basically an insurance policy for insurers.

The fund that pays those reimbursements is facing a lawsuit that says it should provide more information about how it comes up with an annual fee that ultimately gets passed on to drivers. It’s appealing a circuit court decision saying that information is subject to public information requests.

Pete Kuhnmuench is with the Insurance Institute of Michigan, which supports the appeal.

“Literally 90 percent of what was required to be disclosed under the judge’s recent ruling is already out there for public consumption,” Kuhnmuench said.

Plaintiffs in the case say lawmakers need a complete picture as they weigh proposals to change the state’s no-fault law.