PLMIeasy
What is the primary purpose of the Michigan Basic Property Insurance Association (MBPIA) under MCL 500.2920?
To provide basic property insurance to applicants who cannot obtain coverage in the voluntary market
BTo replace the National Flood Insurance Program for Michigan residents living in designated flood zones
CTo reimburse PIP medical claims exceeding $635,000
DTo insure state-owned buildings against tornado damage
Why this is the answer
MCL 500.2920 et seq. created the Michigan Basic Property Insurance Association as the state's residual property market. It exists for applicants — typically in urban, high-risk, or declination-prone areas — who have been refused coverage by voluntary insurers. MBPIA writes basic perils on dwellings and other property. It is not a flood program (NFIP fills that role), is not the MCCA (which reimburses no-fault PIP), and does not insure state property.
Studying for the MI Personal Lines exam?
This question comes from our PL bank. Take a free practice test — no signup.