no-fault

Changes in store for no-fault insurance coverage?

Rick Pluta — Fri, 24 May 2013 19:10:52 +0000

The Michigan Supreme Court has set some new limits on expenses that can be claimed under auto no-fault insurance coverage by people injured in car crashes.

Kenneth Admire used handicapped-accessible vans since a 1987 auto accident. Three times before, his insurance company paid the entire cost of the modified vehicles.

This last time, though, the company said it would pay for the modifications, but Admire has to buy the van.

L. Brooks Patterson speaks out against changing Michigan's no-fault auto insurance

Jennifer White and Mercedes Mejia — Tue, 30 Apr 2013 21:39:20 +0000

A proposed reform to Michigan’s no-fault auto insurance is circulating in the Legislature.

Among other things, it would cap benefits for people who suffer severe injuries in auto accidents at $1 million.

Oakland County Executive L. Brooks Patterson has come out as a strong opponent to this legislation.

Patterson is still recovering from a serious auto accident he had last summer, and his driver, James Cram of Owosso, was paralyzed from the neck down.

In this interview with Jennifer White, Patterson talks about his opposition to the proposed legislation and his recovery.

You can listen to the full interview above.

Patterson wanted to be clear that he and his driver were working at the time of their accident.

Their medical bills are covered by worker's compensation, so Patterson says his opposition to changes to Michigan's no-fault insurance laws are not for his own benefit.

"Did the accident make me more aware and more sensitized to the plight of people who suffer from catastrophic injuries? Absolutely," he said.

This morning's news: Gun sales, 'no-fault' insurance changes, and snowmobile event canceled

Mark Brush — Tue, 05 Feb 2013 14:16:46 +0000

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.

Judge rules mandatory insurance calculations to be public

Lester Graham — Wed, 02 Jan 2013 21:02:09 +0000

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

Lawsuit seeks Michigan auto injury claims data

Rick Pluta — Mon, 23 Jan 2012 21:58:26 +0000

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.

Seven things to know about changes to Michigan's mandatory auto insurance

Lester Graham — Mon, 16 Jan 2012 18:05:18 +0000

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

“Without no-fault insurance…I’d lose everything I own”

Lindsey Smith — Fri, 02 Dec 2011 03:14:32 +0000

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.

Protecting yourself after changes to no-fault insurance

Lester Graham — Tue, 29 Nov 2011 12:00:00 +0000

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.

Legislators want data before changing auto no-fault

Lester Graham — Mon, 28 Nov 2011 12:00:00 +0000

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.

Why Michigan voters might be cut out of the auto no-fault debate

Laura Weber — Fri, 07 Oct 2011 13:15:00 +0000

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.

Former Michigan lawmaker: No-fault insurance bill attempts to circumvent voters

Laura Weber — Mon, 03 Oct 2011 21:58:05 +0000

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).

No-fault insurance changes could shift cost to taxpayers

Lester Graham — Mon, 03 Oct 2011 10:00:00 +0000

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.”

No-fault insurance coverage could not cover medical marijuna under Michigan bill

Rick Pluta — Tue, 27 Sep 2011 21:12:03 +0000

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 agrees to hear no-fault insurance cases

Rick Pluta — Thu, 22 Sep 2011 20:26:13 +0000

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.

Changes coming to Michigan's no-fault auto insurance?

Laura Weber — Tue, 06 Sep 2011 22:06:51 +0000

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.