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Michigan Auto No Fault Update-November 2019

Below is the recent update from the team at the MBIPC on the Auto No-Fault changes coming soon:

MBIPC ADVOCACY UPDATE

As of this writing, there is apparently a budget deal developing between the Governor and Legislative leadership on the final funding of various services and programs that were vetoed by the Governor when she was presented with the FY 2020 budget which her administration had no input  in negotiating. Both the House and Senate are scheduled to come back next week to try and finalize the budget deal, but if no agreement is reached, many programs that had their funding cut or eliminated will be  close to exhausting their funding with many working with existing reserves or other temporary funding sources.. When both Chambers return to session on December 3rd , they will have three weeks of session left for 2019. 

While “quiet discussions” continue on auto no fault, there is no legislative activity anticipated until sometime during the first quarter of 2020.  We remain in contact with key legislators and staff to monitor the status of auto no fault policy issues – both technical and substantive that are being discussed. Informal discussions with DIFS and with the Governor’s office are continuing. This is evident by the bulletins that are coming out from DIFS over the last several weeks.

Currently we are  working with the Administration on the DIFS forms for both the PIP Choice and Liability Levels.  CPAN, along with MAJ submitted language as well as formatting suggestions for the forms that DIFS will ultimately approve for agents to use for policy holders to understand and acknowledge the choices, including the risks and benefits. DIFS is working hard to have these forms completed before the end of the year.  I had the opportunity to recently speak to the Governor about the critical importance of these forms and she assured me that they are working hard to make sure the forms are  clear and understandable to the consumer.

CPAN has sent a letter to the individual board members of the  Michigan Association of  Insurance Agents asking them if they are interested in a briefing forum for their members. Many agents are reaching out to attorneys including our own legal team with many questions on the PA 21 and 22nd.  To date however, our earlier attempts in reaching out to the association have been unsuccessful.

The Michigan Auto Insurance Promise is continuing with the scheduled No Fault Reality Tours  throughout Michigan which is wrapped around the scheduled interviews with the morning radio show produced by Steve Gruber.  You can see the dates and times of the town halls on CPAN’s website: www.cpan.us. It is critical that you assist us in getting folks to these town hall meetings.

Finally, we continue to gear up for additional public education activities around the state after the first of the year. These efforts will be critical in creating the needed public pressure to convince legislators to make necessary and needed changes to PA 21 and 22.

Onward.

Kevin A. McKinney

President

McKinney & Associates

216 N. Chestnut

Lansing, MI  48933

(517) 487-2811

kevin@mckinneyandassociates.net