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

Additional round of auto insurance refunds possible, says Michigan's DIFS | Insurance Business America

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

The Department of Insurance and Financial Services (DIFS) of Michigan has stated that it is possible to have another round of auto insurance refunds for drivers in the state – but only if certain conditions are met.

The regulator initially gave auto insurance companies until May 9 to issue $400 refunds to drivers issued policies by October 31, 2022. The refunds were made possible thanks to a surplus of funds from the Michigan Catastrophic Claims Association, which transferred back $3 billion to insurers for them to return to customers.

Read more: Auto insurers to begin issuing $400 refunds

The DIFS has stated that starting July 1, 2022, the state’s new auto insurance law would require the regulator to do independent actuaries and examine the records of the Michigan Catastrophic Claims Association for the past three years. If the DIFS finds that the claims fund’s assets exceeded 120% of its liabilities, another refund round could be possible.

“DIFS’ priority is to ensure that Michiganders benefit from savings created by the new auto insurance law in every way possible, and we will communicate additional information after the actuarial exam is complete,” the regulator said.

As reported by WEYI-TV, there are other factors that could affect this decision, DIFS said, such as the fund’s investment performance, assessment income, and claims experience.