DIFS Director Issues Statement Regarding Michigan Catastrophic Claims Association Funds for Highway Purposes


LANSING, MI – Department of Insurance and Financial Services (DIFS) Director Patrick McPharlin issued the following statement in response to numerous inquiries regarding House Bill 4560, legislation to appropriate money out of the Michigan Catastrophic Claims Association (MCCA) for highway purposes:Insurance and Financial Services

“The MCCA was created in 1978 to provide the reinsurance needed to support the unlimited medical benefits in our no-fault system – reinsurance that was not available in the marketplace. It is a private, nonprofit association that exists for the sole purpose of ensuring that the medical bills of Michigan’s catastrophically injured auto accident victims can continue to be paid.




“The assets of this fund must remain in order to assure that all claims, current and future, can be paid. This unprecedented taking of funds held by a private association would likely be unconstitutional, and could jeopardize the ability of injured claimants to collect benefits under their insurance contracts. In addition, reducing money in the fund could result in the need for the MCCA to increase its assessment on insurance companies—further driving up the cost of auto insurance in our state.

“We all want to fix the roads. However, fixing roads is a public responsibility that should be carried out with public funds.”

For more information about DIFS or the services provided, please visit the website at www.michigan.gov/difs or follow them on Twitter.

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