News Manager

CPAN Response to Gov. Snyder’s Proposed Insurance “Reforms”

LANSING, Mich. – Gov. Rick Snyder proposed in his State of the State speech tonight, that the Office of Financial and Insurance Regulation (OFIR) be turned into a full state department headed by Insurance Commissioner Kevin Clinton. The governor also proposed unspecified changes to the state’s no-fault auto insurance system.
In response to Gov. Snyder’s proposal for a new Department of Financial and Insurance Regulation, CPAN President John Cornack issued the following remarks:
“With Gov. Snyder now elevating OFIR to a full-fledged department, Michigan drivers should be hopeful that the Insurance Commissioner will now be granted improved regulatory powers that will finally allow him to help reduce auto insurance rates.
“For years, CPAN has called on the Insurance Commission to be given stronger powers to approve auto insurance rates and issue refunds if necessary. The Public Service Commission does just that for utilities – another product that nearly everyone in Michigan must buy – and auto insurance should be no different. By giving the new department director these powers and then directing him to focus on fraud prevention, Gov. Snyder will immediately be able to reduce rates in Michigan,” said Cornack.
With respect to the governor’s proposed changes to the state no-fault system, Cornack said the following:
“We are interested in hearing what new ideas the governor has to reduce the costs of auto insurance, because we already know the proposals debated in the last legislative session won’t work.
Just recently the Ingham County Circuit Court opened the books on the Michigan Catastrophic Claims Association. Lawmakers, the press and the public will finally have the opportunity to get the full truth regarding the financial health of Michigan’s no-fault system. Before any changes are proposed, the MCCA needs to be independently investigated and that is what CPAN plans to do.

About CPAN
The Coalition Protecting Auto No-Fault is a broad-based coalition of consumer advocate groups, lawyers, doctors, hospitals and other health care providers working together to keep Michigan’s model no-fault insurance law intact. Learn more about CPAN by visiting

216 North Chestnut Street
Lansing, MI 48933
Phone: (517) 882-1096
Fax: (517) 882-0879

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