News

FOR IMMEDIATE RELEASE
Wednesday, March 16, 2005 Contact: Rep. Gabe Leland
Phone: (517) 373-6990


LANSING - In response to an expected rate increase from the Michigan Catastrophic Claims Association to increase insurance rates, State Representative Gabe Leland (D-Detroit) introduced a bill that would force the MCCA to obey the Open Meetings Act.

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 Sak (D-Detroit) also will re-introduce similar legislation that also would open the group's records to public scrutiny by requiring an annual audit.

The MCCA, an independent insurance fund that pays for the care of severely injured motorists, is not a government agency and 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 must open its record to the public," said Rep. Leland. "Michigan consumers need to right how this group operates and how it calculates its rate increases. This bill will make sure this will take place."

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.

"We need a strategy to make sure the MCCA is being held accountable," Leland said. "Right now the consumer does not have a voice on the MCCA board. They deserve to have a voice."