Monday, January 30th, 2023

Further spherical of auto insurance coverage refunds doable, says Michigan’s DIFS

Additional round of auto insurance refunds possible, says Michigan's DIFS

The Division of Insurance coverage and Monetary Companies (DIFS) of Michigan has said that it’s doable to have one other spherical of auto insurance coverage refunds for drivers within the state – however provided that sure situations are met.

The regulator initially gave auto insurance coverage corporations till Could 9 to difficulty $400 refunds to drivers issued insurance policies by October 31, 2022. The refunds had been made doable because of a surplus of funds from the Michigan Catastrophic Claims Affiliation, which transferred again $3 billion to insurers for them to return to clients.

Learn extra: Auto insurers to start issuing $400 refunds

The DIFS has said that beginning July 1, 2022, the state’s new auto insurance coverage regulation would require the regulator to do unbiased actuaries and study the information of the Michigan Catastrophic Claims Affiliation for the previous three years. If the DIFS finds that the claims fund’s belongings exceeded 120% of its liabilities, one other refund spherical could possibly be doable.

“DIFS’ precedence is to make sure that Michiganders profit from financial savings created by the brand new auto insurance coverage regulation in each means doable, and we’ll talk extra data after the actuarial examination is full,” the regulator mentioned.

As reported by WEYI-TV, there are different elements that would have an effect on this resolution, DIFS mentioned, such because the fund’s funding efficiency, evaluation revenue, and claims expertise.

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