Recent News

2023 Insolvencies

MutualAid Exchange

Arrowood Indemnity Company

2023 Assessment or Refund

Refund- Other 2 – $2.7M

2022 Assessment or Refund

Refund- WC – $30,000,000

2021 Insolvencies

Bedivere Insurance Company

Highlands Insurance Company

Covered Claim Exclusions

Net Worth Limitations

Pursuant to the MPCGA Act, MPCGA may not handle claims of insureds whose net worth is greater than a certain amount. For companies liquidated prior to September 18, 2006 covered claims shall not include obligations to an insurer, insurance pool, underwriting association, or to a person who has a net worth greater than 1/10 of 1% of the aggregate premiums written by member insurers in this state in the preceding calendar year. As a result of passage of Public Act 362 of 2006, for insolvencies that occur on or after September 18, 2006, an insured will not be covered by MPCGA if its net worth exceeds $25,000,000 on the last day of the insured’s last full fiscal year prior to the insurer’s insolvency. MPCGA uses the aggregate net worth of the insured and all of its subsidiaries and affiliates as calculated on a consolidated basis. The $25,000,000 net worth limit will be adjusted on January 1 of each year to reflect cost of living changes, rounded to the nearest $10,000.

                                                  1/1/22 – 12/31/22 $33,600,000
                                                  1/1/23 – 12/31/23 $36,290,000
                                                  1/1/24 – 12/31/24 $37,790,000
                                                  1/1/25 – 12/31/25 $38,900,000
Maximum Covered Claims

Prior to its amendment on September 18, 2006, the MPCGA Act provided a formula defining the maximum amount that MPCGA may pay on a given claim, other than a worker’s compensation claim. For companies liquidated prior to September 18, 2006 covered claims shall not include that portion of a claim, other than a worker’s compensation claim, which is in excess of 1/20 of 1% of the aggregate premiums written by member insurers in this state in the preceding calendar year. As a result of passage of Public Act 362 of 2006, the maximum amount that MPCGA may pay on a claim, other than a worker’s compensation claim or a claim for personal protection insurance benefits is $5,000,000. The $5,000,000 cap will be adjusted on January 1 of each year to reflect cost of living changes, rounded to the nearest $10,000. The claim cap that is in effect at the time of payment of a claim will apply.

                                                   1/1/22 – 12/31/22 $6,720,000
                                                   1/1/23 – 12/31/23 $7,260,000
                                                   1/1/24 – 12/31/24 $7,560,000
                                                   1/1/25 – 12/31/25 $7,780,000

Maximum Unearned Premium Refunds

The maximum unearned premium refund is adjusted annually to reflect cost of living changes. As a result of passage of Public Act 362 of 2006, unearned premium refunds of less than $50 will not be made on or after September 18, 2006.

Maximum Unearned Premium Refund based on liquidation date:

 

                                                  7/1/21 – 6/30/22 $1,655
                                                  7/1/22 – 6/30/23 $1,780
                                                  7/1/23 – 6/30/24 $1,886
                                                  7/1/24 – 6/30/25 $1,951
                                                  7/1/25 – 6/30/26 $1,998