No-Fault Insurance Reform Approved By Senate

Legislation that makes major reforms to Michigan’s no-fault auto insurance law has been approved by the Michigan Senate.

Following a long and sometimes heated and emotional debate, the Senate Thursday approved the bill on a 21-to-17 vote. The measure now goes to the Michigan House.

The bill creates a new governor-appointed group to handle claims for catastrophic injuries, puts limits on attendant care, establishes an auto insurance fraud authority, and provides certain limits on the amount insurers are obligated to pay providers.

It also dissolves the Michigan Catastrophic Claims Association (MCCA), which handles no-fault personal injury claims in excess of $545,000. However, MCCA would exist until all liabilities are paid.