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LANSING – In a move that will hold the automobile insurance industry accountable and prevent dramatic rate increases, State Representative Mike Simpson (D-Jackson) today voted for a plan that will open the Michigan Catastrophic Claims Association (MCCA) to public scrutiny.

"By inviting the public in for oversight and transparency, we will hold the insurance companies accountable when they are setting the MCCA's rates," said Simpson, who co-sponsored the bills. "The public deserves a seat at the negotiating table."

The plan requires the MCCA, an independent insurance fund that pays for the care of severely injured motorists, to comply with the Open Meetings Act, add public members to the board and open its records to annual audits.

Michigan is the only state that offers unlimited personal injury protection benefits. The MCCA reimburses no-fault auto insurers for benefits that exceed $400,000. The association was created by the Legislature as a means of spreading costs across all Michigan motorists for providing these unique unlimited benefits – however, the MCCA is a private, nonprofit association, and all of its dealings are with insurance companies, not the general public.

The board, which is comprised of five representatives from insurance companies, has raised its annual rates from $14.41 in 2001 to $123 in 2007. Those charges are in turn passed on to consumers, despite the fact that they aren't allowed representation on the MCCA board.