PLMImedium
How is the Michigan Catastrophic Claims Association primarily funded?
AGeneral appropriations from the Michigan Legislature
BA premium tax surcharge collected by DIFS
A per-vehicle assessment levied on member insurers and passed through to policyholders
DFederal reinsurance grants issued under the Affordable Care Act and distributed annually by HHS to state no-fault pools
Why this is the answer
MCL 500.3104(7) requires MCCA to calculate an assessment that, when collected on each insured vehicle, funds projected losses and expenses. Member insurers remit the assessment to MCCA and recover it through the policyholder's premium. The assessment varies annually and by chosen PIP tier.
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