no fault auto insurance

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Political winds flame gun and ammo sales in Michigan

President Obama called on Congress and the American public to support new gun control plans yesterday in Minneapolis. While public support for some kinds of gun control measures is up, others continue to stock up fearing coming gun restrictions.

MLive reports gun and ammunition sales are surging as gun control political winds blow:

In December, the FBI ran 59,445 background checks for guns sales in Michigan, the highest monthly total in the state since the database started in 1998. The second highest monthly total was October 2001 when the FBI ran 46,270 background checks.

Michigan leaders want changes to state's no-fault insurance

If you're seriously injured in an automobile accident in Michigan, the current insurance laws in the state set you up with lifetime medical and rehabilitation coverage for your injuries. But state lawmakers want that changed.

This morning, the Detroit News profiles Sam Howell. He's benefiting from the state's current insurance laws. The News points out why Gov. Snyder and other lawmakers think changes to the current system are necessary:

Snyder says the reforms are necessary to rein in no-fault auto insurance rates in Michigan that rank among the highest in the country — particularly in Detroit — and tackle a $2 billion unfunded liability in the state's catastrophic auto accident fund the insurance industry says is unsustainable without severe cost controls.

As Michigan Radio's Lester Graham has reported, many things influence overall insurance rates in the state, and some argue if these benefits are capped, taxpayers will step in to foot the bill:

Opponents also say capping injury benefits will force the most severely injured accident victims to turn to Medicaid and welfare once they reach the insurance cap and exhaust all their family resources. They estimate it will shift $30 million a year to taxpayers.

Snowmobile event in upper Michigan canceled in wake of Caleb Moore's death

Michigan's Turtle Creek Casino and Hotel near Traverse City was planning to hold a snowmobile freestyle event this Friday and Saturday (Feb. 8 and 9), but the group overseeing the event has canceled in the wake of the tragic death of snowmobile freestyler Caleb Moore.

More from the Detroit Free Press:

The ISOC, which overseas and promotes snocross racing with the AMSOIL Championship Snocross series, has also withdrawn snowmobile freestyle competition from Wisconsin's Lake Geneva Resort stop March 15-16.

Moore, 25, died in hospital from injuries suffered when his snowmobile landed on top of him after he crashed attempting a back flip on his 500-pound machine in men's snowmobile freestyle Jan. 24 in Aspen, Colo. It was the first death in the 18-year history of the X Games.

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.

A judge has ruled the organization which sets the mandatory fee for no-fault auto insurance must disclose how it calculates the fee. 

The Michigan Supreme Court opens its 2012 session this week.
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The Michigan Supreme Court formally opens its 2012 session this week.

Its first cases deal with no-fault insurance benefits, Michigan’s open meetings law, and medical marijuana.      

The first arguments of the court’s session will be on the case of a woman who wants her auto no-fault coverage to pay for her treatments for depression and post-traumatic stress disorder.

She was diagnosed after witnessing her son’s death in a motorcycle accident. She was following him in her car when he was struck by another vehicle.

user H.L.I.T/Flickr

CORRECTION: An earlier version of this story reported that the MCCA fee is $145 per driver. It is, in fact, $145 per insured vehicle. If you own, and insure, two cars, the fee would be $290.

 

A coalition of trial lawyers, unions and victim advocates is going to court seeking data on accidents and insurance payments.

Lawmakers who want to change Michigan’s no-fault insurance system say the current system is unsustainable. But fans of no-fault say the data will show the system is financially sound.

The problem is the information is held by an industry group that does not want to release the information. The group sets an annual assessment on drivers to pay the health care bills of the most-critically injured people.

“This knowledge is being hidden from us, from the Legislature, from the public," said George Sinas, a personal injury attorney who opposes plans to change no-fault. "We are deeply committed in this lawsuit in seeking an end, in seeking a lifting if you will of this shroud of secrecy.”  

Sinas says the Michigan Catastrophic Claims Association should be forced to release the information because it was created by the Legislature, and because every driver has to pay the fee.

But the insurance industry disagrees.

"The MCCA is not a public body," said Pete Kuhnmuench, president if the Insurance Institute of Michigan, an industry association. "It’s not even a policymaking body. It’s a payment mechanism. It collects assessments from insurance companies and then it reimburses insurance companies for expenses they have relative to a private contract.”

Kuhnmuench says state insurance regulators make sure the MCCA assessment is fair and that consumers are protected. The MCCA assessment on every insured vehicle in Michigan is $145 this year.

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The Michigan House of Representatives is expected to bring HB 4936 to the floor for a vote soon.

That legislation would significantly change Michigan’s auto no-fault Personal Injury Protection (PIP) coverage.

Here is a quick overview of what we have now, the proposed changes, and the potential consequences of those changes.

1. What we have now

There’s some confusion about changing no-fault. It’s not the “no-fault” part that would change. It’s the Personal Injury Protection portion of auto insurance that would change.

A coalition of rehabilitation centers and people injured in car accidents is trying to stop proposed changes to Michigan’s no-fault auto insurance benefits.

The Coalition Protecting Auto No-Fault is hosting town hall meetings across the state to educate people about the proposed changes. They’re also inviting people impacted by a major car accident to share their stories.

Michigan legislators are considering changing insurance benefits for people badly injured in auto accidents.  The sponsors of the legislation say it will lower the price of auto insurance.  Some analysts say it will mean people who are severely hurt won’t get the care they need and argue in the end won’t save much money at all.

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Michigan legislators are looking at changing the state’s mandatory auto no-fault insurance.  But some of the legislators say the information they need from insurance companies to make an informed decision has not been available to them.  Regulators say legislators and the public wouldn’t be able to understand the information even if it were made available.

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A proposal to drastically alter the state’s auto no-fault insurance law could come up for a vote as soon as this week in the state House. The House proposal includes a $50,000 appropriation that protects the measure from a voter-led ballot initiative to overturn the law via a referendum.

Democratic state Senator Bert Johnson says using referendum-proof language to shield controversial measures from being overturned by voters is a dangerous political game.

“We think that that limits voter protection as well. People should always be able to come and petition their government for what they believed the right thing is. And that’s the foundation of democracy in America, that’s what we’re built on," Johnson says.

If the proposed changes to the no-fault insurance law are approved as currently written, it would be the fourth time this year the Republican-led Legislature passed referendum-proof bills that were not part of the state budget.

Update 3:35 p.m.

A state House committee has approved major changes to Michigan’s no-fault auto insurance.

The legislation would cap medical fees and restrict the kind of care people who are badly hurt in car accidents could get.

As it is now, if someone is catastrophically injured in a car accident, no-fault Personal Injury Protection pays for all necessary medical and rehabilitation expenses.

It’s unlimited, lifetime benefits if necessary.

This new bill would limit medical fees, and it would give motorists the choice to purchase $500,000, $1 million, or $5 million worth of coverage.

After that, you’re on your own.

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Hundreds of people showed up at the Capitol this week to speak for or against a proposal that would dramatically alter Michigan’s no-fault auto insurance law.

The overwhelming majority of the people were in favor of keeping the state’s lifetime medical coverage for injured people.

If the law is passed, and people don’t like it, the Michigan Constitution allows voters to challenge it with a referendum, but the Republican sponsors have found a way around that.

At the end of the 42-page bill that would require drivers to choose the level of auto insurance coverage they want, and end guaranteed lifetime medical coverage, there is an appropriation of $50,000.

The stated purpose of the $50,000 appropriation is to help implement the change in law.

Republican state Representative Pete Lund said the money is needed for a report and study on the effects of the law.

The framers of the Michigan Constitution wrote that any law that appropriates money is referendum proof, and they did that to ensure that the full faith and credit of the state is not jeopardized.

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A state House panel will begin public hearings tomorrow (Tuesday) on whether Michigan should make some big changes to the mandatory no fault auto insurance law.

The controversial proposal would let drivers choose their level of coverage.

The proposal also includes a $50,000 appropriation to implement the law in such a way as to make it referendum-proof.

Former state Representative Jim Howell says that money is in the bill to prevent voters from overturning the measure on the ballot.

"You know, I saw that appropriation, I knew what was going on with it. Very honestly – unless some of the current representatives have read about it some place, or heard it in the media, they wouldn’t have any clue," said Howell.

Howell said he thinks term limits prevent new lawmakers from understanding the content of a major proposal such as the no fault elimination bills.

Howell said they probably don’t remember that voters rejected similar changes to no fault insurance by a significant margin in the early 1990s.

The former Republican lawmaker will testify against the proposal tomorrow (Tuesday).

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Tomorrow (TUES.) the Michigan legislature holds the first hearings on bills that would change the state’s no-fault auto insurance.  Legislators say auto insurance is too high and they want to allow people to buy less coverage. 

Right now, people who buy car insurance in Michigan also have to purchase something called Personal Injury Protection.  But, Representative Pete Lund says drivers who don't want the coverage should by law be able to pay for something less.

“I think it’s good to give people the options in life.”

People injured in auto crashes would not be allowed to use their no-fault coverage to pay for medical marijuana to treat chronic pain under a bill approved by a legislative committee.

The measure is one of several proposed new restrictions to Michigan’s medical marijuana law.

The law was enacted by voters in 2008.

Peter Kuhnmuench is with the Insurance Institute of Michigan, which supports the measure. He says insurance coverage was not supposed to be part of the medical marijuana law.

"So I think it’s pretty clear, yes, they want to utilize this is as a medical procedure, but at the same hand, not force any carrier to cover it as a covered service."

Kuhnmuench  says the bill would not prohibit someone from buying additional coverage that might pay for medical marijuana.

Medical marijuana patients say the law should not specifically ban one treatment for people facing chronic pain from an injury.

Michigan Supreme Court

The Michigan Supreme Court has agreed to hear two cases on whether people who use a family vehicle without permission are covered by no-fault benefits if they are injured in a crash.

In one case, Ryan DeYoung was excluded from his wife’s insurance policy.

In September of 2008, he got drunk, took his wife’s car without permission and crashed the vehicle.

The hospital and recovery center billed the insurance company, which denied the claim.

The insurance company is challenging an appeals court ruling that says DeYoung was covered under “joyriding” clause that typically covers teen-aged drivers who take their parents’ vehicles without permission.

In a separate case, an insurer is challenging a ruling that Craig Smith Junior was covered for injuries he sustained when he crashed his father’s SUV into a tree while driving drunk.

Smith did not have a valid license, and had been told not to drive the vehicle. The insurance company tried to deny coverage because Smith broke the law when he took the wheel of his parent’s car.

A fight is brewing at the state Capitol over whether Michigan’s no-fault auto insurance law should be changed.

Backers of the legislation want drivers to be able to opt out of coverage that provides unlimited lifetime benefits for the most severely injured accident victims.

Pete Kuhnmuench, with the Insurance Institute of Michigan, says the option would save people money:

"We think putting more money back in the pockets of the consumers we think now is the right time to do that, given our economics," says Kuhnmuench.

A study commissioned by the measure’s opponents says most drivers would choose to underinsure themselves to save money.

The study says that would cost the state hundreds of millions of dollars.

user H.L.I.T. / Flickr

We received a lot of reaction from people about our story on the potential consequences of eliminating the mandatory personal injury protection (PIP) part of Michigan's no-fault auto insurance.

This seemingly bureaucratic story about potential changes to Michigan's insurance laws has a lot of devastating human stories behind it.

This morning, Michigan Radio's Lester Graham released a story highlighting what could be at stake if changes are made to the personal injury protection portion of Michigan's no-fault insurance requirements.

Michigan Senators Joseph Hune (R-22nd district) and Virgil Smith (D-4th district) have sponsored legislation that would end the mandatory personal injury protection (PIP) coverage of Michigan's no-fault auto insurance law.

It means that Michigan drivers could choose what level of personal injury protection insurance they would like to buy.

Under the bills, drivers could cap their personal injury protection insurance at $50,000 - a fraction of the coverage needed should they be in serious accident.  It would also mean they would not pay into and not be eligible for funds from the Michigan Catastrophic Claims Association fund, which makes the unlimited, lifetime benefits for people severely injured in a auto accident possible.

Now, a new poll sponsored by a group fighting these bills, the Coalition Protecting Auto No-Fault, finds the majority of Michigan voters don't want the changes.

From their press release:

The telephone survey of 600 voters by Chicago-based Glengariff Group found that 62 percent of those polled oppose limits on the amount of medical and rehabilitation care an accident victim could receive from their auto insurer; 27 percent support limits on medical and rehabilitation benefits and 11 percent were unsure. Of those opposed to limiting medical and rehabilitation auto injury benefits, 43 percent indicated strong opposition.

The Coalition's press release says "if auto insurers no longer covered injury costs for those suffering catastrophic injuries – which can cost tens of millions of dollars over the course of a lifetime – medical costs would shift from insurance companies and onto the taxpayer-funded Medicaid insurance program once family assets were depleted."

The bill to make changes to Michigan no-fault insurance law is expected to be taken up by the legislature early in September.

Robbie Howell / Flickr

The Michigan legislature is considering bills to end the state’s mandatory no-fault auto insurance.  Its supporters say it will give consumers more choices and help reduce cost of auto insurance.  Opponents say it’s a misguided effort that will have very little effect on insurance rates and could mean people who suffer injuries won’t get the help they need to fully recover. 

Kristin Howard was driving, taking an interstate to work on a summer day in 2006 when her life was changed forever.

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