No-fault auto insurance rates case to be appealed to Michigan Supreme Court

Sep 3, 2014

A group that wants more information on how auto insurance rates are set in Michigan plans to take its case to the state Supreme Court.

Credit Steve Carmody / Michigan Radio

The Coalition Protecting Auto No-Fault (CPAN) is suing a private fund that reimburses people who are seriously injured in auto accidents. The Michigan Catastrophic Claims Association (MCCA) tacks a fee onto auto insurance policies to pay for the reimbursements. But it has refused to make documents public that could show how it sets its rates.

“They get to be Oz behind the curtain,” CPAN President John Cornack told reporters on Wednesday. “And until someone pulls that curtain back, we really don’t know how they’re setting these rates on either side of that teeter-totter.”

“The only reasonable conclusion that can be drawn is that this data does not support what they have done,” said George Sinas, an attorney for CPAN. “Otherwise, they ought to cough it up. And they won’t.”

The MCCA says it already provides much of the information online. It says it is not subject to the Freedom of Information Act (FOIA) because it is not a public entity.