Michigan Supreme Court Cited as Culprit in Auto Insurance Cost Hike

August 17, 2009

  • August 17, 2009 at 1:22 am
    nobody important says:
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    Michigan turned over the Supreme Court to the Democrats in the last election. I expected the pro business rulings from the past to go out the door. Here we go. Lot’s more anti insurance ruling to come. The Democrats here just don’t like insurance companies. That’s not just my opinion, it’s in the news on a weekly basis with more anti insurnace legislation and taxes all the time.

  • August 17, 2009 at 5:23 am
    Concerned says:
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    Let’s not lose sight of the fact that the insurance company still pays out the first $460,000, and that the people who work for domiciled carriers will also have to pay the increased MCCA fee. To imply that these people don’t care to properly negotiate care-fees is a bit out of line, because they still bear the longterm costs. I do find it a bit disturbing, though, that the father is profiting from this venture. I am not sure what he did in the past, so perhaps this is replacement income for a job he gave up to care for his son. But, if this is pure profit for him, shame on him for exploiting his son’s injuries.

  • August 18, 2009 at 7:59 am
    Ratemaker says:
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    There are good apples and bad apples out there.

    The “good ones” will do their job on each and every claim, making sure it settles for the right amount, even though the carrier may not be responsible for the upper layers of loss.

    The “bad ones”, knowing that the MCCA will carry the burden of paying the upper layers of loss and now has no legal recourse to reject excessive settlements, will cease caring as soon as a claim exceeds the carrier’s retention.

    Why? The only skin in the game a carrier has left at this point is the adjustment expense payments, which the MCCA does not pick up. This split of expenses, combined with this ruling, creates a perverse incentive — to avoid being sued, a “bad” carrier will offer excessive settlements to make the claimant go away. When sued, a “bad” carrier will settle out of court to avoid the legal costs, regardless of the suit’s merit.

  • August 18, 2009 at 1:37 am
    An outraged Agent says:
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    Basically, the article states Michael Migdal is ripping off the poor people of Michigan. As if they don’t have enough with the loss of jobs in the state and then this Dad comes in and sets up the biggest rip off. This is totally ridiculous!!! I am so glad I left Michigan in 1991 to pursue insurance in another state. Shame on Michael Migdal, it probably is a blessing that his son will never know what a crook he is…



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