AAA Michigan Supports $1 Billion MCCA Refund
12 March 1998
AAA Michigan Supports $1 Billion MCCA Refund
DEARBORN, Mich., March 11 -- AAA Michigan announced today
(March 11) its support for a $1 billion Michigan Catastrophic Claims
Association (MCCA) refund as proposed by the state House. The MCCA has three
major responsibilities:
* Provides medical care for persons injured in automobile accidents when
the cost of their care exceeds $250,000.
* Makes sure that it has enough money to cover the medical care of these
individuals.
* Makes sure that it is not accumulating more money than it needs to
cover the medical care of these individuals.
"AAA Michigan believes the MCCA is doing a good job with all three
responsibilities, including its obligation to make sure it doesn't have more
money than it needs to take care of injured motorists," said Larry Givens, AAA
Michigan Vice President, Corporate Relations. "This responsibility is being
met by refunding surplus funds, through a series of assessment credits which
have been in place since 1996."
Under this system, said Givens, over $500 million has been returned to
Michigan motorists so far and another $500 million is scheduled to be returned
over the next four years. Without this refund program, the 1998 MCCA
assessment would have been $68.73. Instead, the assessment is $5.60, which
amounts to a refund of $58.27 per vehicle.
If the legislature believes the pace of the existing refund program is too
slow and wishes to accelerate it, AAA Michigan does not object, as long as the
ability of the MCCA to meet its obligations is not compromised in any way.
Any cash refund, however, must define to whom such a refund will be sent.
If refunds are to be directed only to current policyholders, such a direction
must be clearly defined in the legislation.
If cash refunds are to be split with others who have contributed to the
fund in the past, it should be understood that any refund would be
significantly reduced on a per car basis.
SOURCE AAA Michigan