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This story has been updated to include the timeframe for refund checks and the launch of a consumer Frequently Asked Questions webpage, located here.
Lansing, MI— The Michigan Catastrophic Claims Association has confirmed it will provide $400 refund checks, per vehicle, to the state’s auto-insurance policyholders, meaning roughly 70,000 checks should be heading to Flint residents by May 9, 2022.
The move comes after Michigan Governor Gretchen Whitmer sent a letter to the MCCA last month asking that the organization use its projected $5-billion surplus to refund the state’s policyholders.
Whitmer’s request was met with approval by the MCCA and renewed upset around the legislation that the governor claimed was responsible for creating the MCCA’s surplus—legislation which critics say limits payments for long-term care of crash victims.
“Michiganders have paid into the catastrophic care fund for decades,” said Governor Whitmer in a Dec. 7 press release. “And I am pleased that the MCCA developed this plan so quickly after unanimously approving my request to return surplus funds to the pockets of Michiganders.”
According to the same release, the refunds apply to every Michigander with an active auto insurance policy as of 11:59 p.m. on October 31, 2021.
Eligible consumers do not need to take action in order to receive a refund. Rather, the MCCA will provide funds to Michigan insurers by March 9, 2022 and those insurers will be responsible for issuing refund checks to eligible policyholders via check or ACH deposit.
In a secondary press release, issued Dec. 13, 2021, Governor Whitmer’s office confirmed policyholders should expect refund checks by no later than May 9, 2022.
The Michigan Department of Insurance and Financial Services has also set up an FAQ webpage for more information.