News

FOR IMMEDIATE RELEASE
Wednesday, March 16, 2005 Contact: Rep. LaMar Lemmons Jr.
Phone: (517) 373-0106
Rep. LaMar Lemmons III
Phone: (517) 373-1776

LANSING - In response to an expected rate increase from the Michigan Catastrophic Claims Association to increase insurance rates, State Representatives LaMar Lemmons III (D-Detroit) and LaMar Lemmons Jr. (D-Detroit) called on the Legislature to pass bills that would crack down on the group's rate increasing system.

State Representatives Lee Gonzales (D-Flint Township) and Glenn S. Anderson (D-Westland) introduced legislation that would require the MCCA to hold public meetings, add public members to the board, and open their records. State Representative Michael G. Sak (D-Grand Rapids) is re-introducing similar legislation that also would open the group's records to public scrutiny by requiring an annual audit.

The MCCA is an independent insurance fund that pays for the care of severely injured motorists. The group is not a government agency and it is not subject to the Open Meetings Act or the Freedom of Information Act. The MCCA requires all auto insurance companies in Michigan to pay a certain amount into the fund. The MCCA sets the amount paid into the fund.

The group, whose rates jumped from $14.41 in 2001 to $127.24 in 2004, is expected to increase its rates again this year. Those charges would be passed on to the consumer.

"The MCCA has to open its record for public scrutiny," said Rep. Lemmons III. "Michigan consumers are fed up with increasing insurance rates. They have to justify these increases."

The MCCA is expected to increase its rates, yet a member of the public is not on its board, the organization does not hold open meetings and it does not have to answer to any Freedom of Information Act requests.

"The MCCA needs to be held accountable," Rep. Lemmons Jr. said. "Right now the consumer does not have a voice on the MCCA board and that is not fair."