P&CMImedium
Under the Michigan No-Fault Act (as reformed by PA 21 and PA 22 of 2019), how are personal auto rates regulated?
AThey are exempt from filing because no-fault coverage is state-funded through the MCCA rather than written by private insurers
BThey are set by the MCCA
CThey are unilaterally fixed by the DIFS Director each year
They remain subject to Chapter 24 standards but with additional No-Fault-specific tier and PIP-choice requirements
Why this is the answer
PA 21 and PA 22 of 2019 reformed the No-Fault Act to create PIP coverage tiers ($50K, $250K, $500K, unlimited, and Medicare opt-out). Insurers must file separate rates corresponding to each tier with DIFS under the Chapter 24 process. Coverage is privately written, the MCCA does not set primary rates, and the DIFS Director does not fix annual rates by fiat.
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