2025-05-14T06:47:44-05:00 2024-06-30 331498605 PLANTE & MORAN PLLC 10 S RIVERSIDE PLAZA 9TH FLOOR CHICAGO IL 60606 990 2023-07-01 382227794 MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION MICH 7349532779 17584 LAUREL PARK DRIVE NORTH LIVONIA MI 481523982 BRANDON PACH CONTROLLER 7349532779 2025-05-12 1 0 DAVID LOWENTHAL P00378651 3122071040 2025-05-12 2023 2025-03-06 01:10:19Z BRANDON PACH 17584 LAUREL PARK DRIVE NORTH LIVONIA MI 481523982 6195528931 0 X WWW.MICHIGANCATASTROPHIC.COM X 1978 MI REVIEW OF PERSONAL INJURY PROTECTION CLAIMS REPORTED BY MEMBERS AND INDEMNIFICATION OF ULTIMATE MEMBER LOSS UNDER STATUTORY REQUIRED PERSONAL PROTECTION INSURANCE COVERAGES. 5 5 53 0 0 0 0 0 540910222 778717154 762710513 981884312 178 30 1303620913 1760601496 0 0 0 0 23808640 17077687 0 0 0 -311658384 2194639894 -287849744 2211717581 1591470657 -451116085 21617618962 22448305256 23666991658 24545082847 -2049372696 -2096777591 X SEE SCHEDULE O 0 0 THE MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION (MCCA), A PRIVATE NON-PROFIT UNINCORPORATED ASSOCIATION, WAS CREATED BY THE STATE LEGISLATURE IN 1978 BY PUBLIC ACT 136 OF 1978, WHICH AMENDED THE NO-FAULT LAW BY ADDING SECTION 3104 EFFECTIVE JULY 1, 1978. MICHIGAN'S UNIQUE AUTO INSURANCE NO-FAULT LAW PROVIDES UNLIMITED LIFETIME COVERAGE FOR MEDICAL EXPENSES WHICH RESULT FROM AUTO ACCIDENTS. THE MCCA REIMBURSES AUTO NO-FAULT INSURANCE COMPANIES FOR EACH PERSONAL INJURY PROTECTION (PIP) MEDICAL CLAIM PAID IN EXCESS OF A SET AMOUNT. CURRENTLY THAT AMOUNT IS $635,000. THE INSURANCE COMPANY PAYS THE ENTIRE CLAIM BUT IS REIMBURSED BY THE MCCA FOR MEDICAL COSTS OVER $635,000.ALL AUTO INSURANCE COMPANIES OPERATING IN MICHIGAN ARE ASSESSED TO COVER THE CATASTROPHIC MEDICAL CLAIMS OCCURRING IN MICHIGAN. THOSE ASSESSMENTS ARE GENERALLY PASSED ON TO AUTO INSURANCE POLICYHOLDERS. THE 2023-2024 ASSESSMENT WAS $122.00 PER VEHICLE, WHICH CONSISTED OF A PURE PREMIUM OF $74.00 AND A DEFICIT RECOUPMENT OF $48.00. 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 39 0 1 53 1 0 1 CJ 0 0 0 0 0 0 X 5 5 0 0 0 0 1 0 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X BRANDON PACH 7349532779 17584 LAUREL PARK DRIVE NORTH LIVONIA MI 481523982 TED REINBOLD DIRECTOR & CHAIR 1.00 0.00 X X 0 0 0 ANTHONY PTASZNIK DIRECTOR & VICE CHAIR 1.00 0.00 X X 0 0 0 ERIN FOGARTY DIRECTOR 1.00 0.00 X 0 0 0 JOHN PARSONS DIRECTOR 1.00 0.00 X 0 0 0 PAUL MUELLER DIRECTOR 1.00 0.00 X 0 0 0 R KEVIN CLINTON EXECUTIVE DIRECTOR 40.00 0.00 X 534429 0 23982 JAMES D LUNSTED CONTROLLER 40.00 0.00 X 261262 0 41294 JOSEPH ERHARDT ASSISTANT EXECUTIVE DIRECTOR 40.00 0.00 X 477223 0 34887 KATHRYN MILLER GENERAL COUNSEL 40.00 0.00 X 381721 0 46586 WILLIAM MANGOLD IT DIRECTOR 40.00 0.00 X 212330 0 54653 LAURA KOCOT CLAIMS MANAGER 40.00 0.00 X 195736 0 47402 WENDY HORBAL CLAIMS MANAGER 40.00 0.00 X 193151 0 51090 2255852 0 299894 21 0 1 0 MONDRIAN INVESTMENT PARTNERS 1105 N MARKET STREET SUITE 1118 WILMINGTON DE 19801 INVESTMENT MANAGEMENT 3725754 CENTRIC CONSULTING LLC PO BOX 75581 CLEVELAND OH 441014755 IT SUPPORT 3608366 DODGE & COX 555 CALIFORNIA STREET 40TH FLOOR SAN FRANCISCO CA 941041501 INVESTMENT MANAGEMENT 2874046 INVESCO SECURED MANAGEMENT 22469 NETWORK PLACE CHICAGO IL 606731220 INVESTMENT MANAGEMENT 2818227 FEDERATED HERMES PO BOX 641531 PITTSBURGH PA 152641531 INVESTMENT MANAGEMENT 2563154 21 PREMIUMS EARNED 524298 778717154 778717154 778717154 695521644 695521644 4721290103 4434927435 286362668 286362668 286362668 MISCELLANEOUS INCOME 900099 30 30 30 1760601496 778717184 0 981884312 X 840265 12198664 -176302 3333225 881835 -1960151 680504 23298285 813910 178725 21291981 689463 48895 7572 -122083 595482 LOSSES INCURRED 2134114213 ALLOCATED LOSS ADJ. 15000496 MEMBERSHIP DUES 2602 2211717581 324208427 338492609 7161253 34179418 527685 155108 382586 380080 9530 2506 18350301805 18768897212 2613514576 3083005105 321895686 223573298 21617618962 22448305256 17993155 65713804 23648998503 24479369043 23666991658 24545082847 X 0 0 0 0 -2049372696 -2096777591 -2049372696 -2096777591 21617618962 22448305256 X -451116085 405863910 -2152720 X X 0 1 X 1 0 382586 380080 2506 2506 PRIVATE EQUITY FUNDS 1152010816 F HIGH YIELD BANK LOANS 1656621495 F PRIVATE CREDIT 274372794 F 3083005105 NET UNPAID LOSSES 23774710000 LOSS ADJUSTMENT EXPENSES 340380000 UNEARNED PREMIUMS 180777015 SECURITIES LENDING 183502028 24479369043 1737303211 0 1737303211 23298285 23298285 1760601496 2188419296 0 2188419296 23298285 23298285 2211717581 CENTRAL AMERICA AND THE CARRIBEAN 0 0 INVESTMENTS 1152010815 0 0 0 0 0 0 1152010815 0 1152010815 1 0 1 0 1 0 SCHEDULE F, PART I, LINE 3, COLUMN F: TOTAL EXPENDITURES FOR AND INVESTMENTS IN THE REGION: $1,152,010,815 X X X X 0 0 0 R KEVIN CLINTON EXECUTIVE DIRECTOR 425669 0 94750 0 14010 0 22590 0 1392 0 558411 0 0 0 JOSEPH ERHARDT ASSISTANT EXECUTIVE DIRECTOR 373043 0 92000 0 12180 0 19194 0 15693 0 512110 0 0 0 KATHRYN MILLER GENERAL COUNSEL 308163 0 62068 0 11490 0 20979 0 25607 0 428307 0 0 0 JAMES D LUNSTED CONTROLLER 232392 0 22690 0 6180 0 24917 0 16377 0 302556 0 0 0 WILLIAM MANGOLD IT DIRECTOR 191170 0 19180 0 1980 0 19340 0 35313 0 266983 0 0 0 WENDY HORBAL CLAIMS MANAGER 173436 0 18425 0 1290 0 15130 0 35960 0 244241 0 0 0 LAURA KOCOT CLAIMS MANAGER 176036 0 18410 0 1290 0 16406 0 30996 0 243138 0 0 0 FORM 990, PART III, LINE 1 MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION ("MCCA") WAS ESTABLISHED BY PUBLIC ACT 136 OF 1978, WHICH AMENDED THE NO-FAULT LAW BY ADDING SECTION 3104 EFFECTIVE JULY 1, 1978. THE LEGISLATURE CREATED MCCA BECAUSE SMALLER INSURANCE COMPANIES HAD DIFFICULTY OBTAINING REINSURANCE FOR MICHIGAN'S AUTOMOBILE NO-FAULT POLICIES, WHICH PROVIDED FOR UNLIMITED LIFETIME MEDICAL BENEFITS FOR PEOPLE WHO ARE CATASTROPHICALLY INJURED IN AUTO ACCIDENTS. THE MCCA IS AN UNINCORPORATED NON-PROFIT ASSOCIATION OF WHICH EVERY INSURER THAT SELLS AUTOMOBILE OR MOTORCYCLE COVERAGE IN MICHIGAN IS REQUIRED TO BE A MEMBER. THE MCCA IS FUNDED BY AN ANNUAL PREMIUM ASSESSMENT TO ITS MEMBER INSURANCE COMPANIES BASED ON THE NUMBER OF POLICIES COVERING AUTOMOBILES AND MOTORCYCLES WRITTEN IN MICHIGAN. THE MCCA IS REQUIRED TO ASSESS AN AMOUNT EACH YEAR THAT IS SUFFICIENT TO COVER THE LIFETIME CLAIMS OF ALL PERSONS CATASTROPHICALLY INJURED IN THAT YEAR AND IN ADDITION, MAY ADJUST FUTURE ASSESSMENTS FOR EXCESSES OR DEFICIENCIES IN PRIOR ASSESSMENTS. THESE ASSESSMENTS PROVIDE FUNDS FOR THE INDEMNIFICATION OF THOSE MEMBERS AGAINST ULTIMATE LOSS SUSTAINED UNDER STATUTORY REQUIRED PERSONAL PROTECTION INSURANCE IN EXCESS OF THE APPLICABLE AMOUNT SET FORTH IN SECTION 3104(2) OF THE MICHIGAN INSURANCE CODE. BEGINNING JULY 1, 2002, AS A RESULT OF THE ENACTMENT OF PUBLIC ACT 3 OF 2001, THE MEMBER RETENTION LEVEL INCREASED FROM $250,000 TO $300,000 AND THEN GRADUALLY INCREASED ON AN INCREMENTAL BASIS OVER A TEN-YEAR PERIOD UNTIL A $500,000 LEVEL WAS REACHED ON JULY 1, 2011. THEREAFTER, BEGINNING JULY 1, 2013, THE RETENTION WILL BE INCREASED EACH ODD NUMBERED YEAR BY 6% OR THE CONSUMER PRICE INDEX, WHICHEVER IS LESS. THE MEMBER RETENTION LEVEL FOR THE PERIOD JULY 1, 2021, THROUGH JUNE 30, 2023, IS $600,000, AND THE MEMBER RETENTION LEVEL FOR THE PERIOD JULY 1, 2023, THROUGH JUNE 30, 2025, IS $635,000. AS OF JUNE 30, 2024, THE MCCA'S ASSETS OF $22.448 BILLION WAS LESS THAN ITS THEN ESTIMATED LIABILTIES OF $24.545 BILLION, RESULTING IN AN ESTIMATED DEFICIT OF $2.097 BILLION. FORM 990, PART VI, SECTION A, LINE 6 THE ASSOCIATION IS A PRIVATE UNINCORPORATED NON-PROFIT ASSOCIATION OF WHICH EVERY INSURER THAT SELLS AUTOMOBILE OR MOTORCYCLE COVERAGE IN MICHIGAN IS REQUIRED TO BE A MEMBER. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO THE MCCA PLAN OF OPERATION REQUIRE APPROVAL OF THE STATE OF MICHIGAN DIRECTOR OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES AND A MAJORITY VOTE OF THE MEMBER COMPANIES. FORM 990, PART VI, SECTION B, LINE 11B AN INDEPENDENT PAID PREPARER PREPARES FORM 990, WHICH IS THEN REVIEWED BY MANAGEMENT. UPON COMPLETION OF THE REVIEW PROCESS, AN ELECTRONIC COPY IS MAILED TO THE AUDIT COMMITTEE CHAIR, GENERAL COUNSEL AND TO THE CHAIR OF THE BOARD OF DIRECTORS. OTHER DIRECTORS MAY REQUEST A COPY OF THE FORM. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES, BOARD MEMBERS AND STANDING COMMITTEE MEMBERS ARE REQUIRED TO COMPLETE A CONFLICT-OF-INTEREST DISCLOSURE STATEMENT ANNUALLY. IN THE EVENT THAT A CONFLICT OF INTEREST ARISES, FOR A DIRECTOR, STANDING COMMITTEE MEMBER OR EMPLOYEE, THAT INDIVIDUAL IS REQUIRED TO PROMPTLY INFORM THE EXECUTIVE DIRECTOR OF THE MCCA. IN THE EVENT THAT AN ACTUAL OR POTENTIAL CONFLICT ARISES FOR THE EXECUTIVE DIRECTOR, THAT INDIVIDUAL IS REQUIRED TO PROMPTLY INFORM THE CHAIR OF THE BOARD OF DIRECTORS OF THE MCCA. ANY REPORTED CONFLICTS ARE REVIEWED BY THE EXECUTIVE DIRECTOR, THE CHAIR OF THE AUDIT COMMITTEE, AND THE CHAIR OF THE BOARD OF DIRECTORS, AND A RECORD IS KEPT OF EACH CONFLICT WHEN THE INTEREST BECOMES SUBJECT TO AND REQUIRES ACTION. ADDITIONALLY, ALL DIRECTORS ARE REQUIRED TO RECUSE THEMSELVES FROM ANY BOARD ACTION OR DECISION THAT INVOLVES THEIR COMPANY OR PERSONAL INTERESTS, INCLUDING NOT VOTING ON THE MATTER, NOT TAKING ACTION AND NOT USING PERSONAL INFLUENCE ON THE MATTER. FORM 990, PART VI, SECTION B, LINE 15 A HUMAN RESOURCES CONSULTANT IS RETAINED ON AN AS NEEDED BASIS TO VALIDATE THE MARKET SALARY RANGES FOR EACH POSITION. THE MCCA HR COMMITTEE REVIEWS THE DATA AND MAKES A RECOMMENDATION OF ANY ADJUSTMENTS THAT THE FULL BOARD OF DIRECTORS DISCUSSES AND VOTES ON. IN ADDITION, ON AN ANNUAL BASIS, THE HR COMMITTEE REVIEWS NATIONAL COMPARABILITY DATA REGARDING THE AVERAGE SALARY RANGE AND MERIT INCREASES AND MAKES A RECOMMENDATION THAT THE FULL BOARD OF DIRECTORS DISCUSSES AND VOTES ON. FORM 990, PART VI, SECTION C, LINE 19 THE MCCA'S FORM 990 AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. THE MCCA'S GOVERNING DOCUMENTS (THE STATUTE THAT CREATED THE MCCA AND THE PLAN OF OPERATION) AND THE FINANCIAL STATEMENTS ARE AVAILABLE ON THE MCCA'S PUBLIC WEBSITE. FORM 990, PART IX: FOR LINE 22, DEPRECIATION, MCCA IS REFLECTING NEGATIVE EXPENSES DUE TO THE CHANGE IN UNALLOCATED LOSS ADJUSTMENT EXPENSE RESERVES FROM FISCAL YEAR 2023 TO FISCAL YEAR 2024 IN WHICH THE DECREASE IN UNALLOCATED EXPENSE RESERVES WAS GREATER THAN THE AMOUNT PAID IN FISCAL YEAR 2024. FORM 990, PART XI, LINE 9: SURPLUS DISTRIBUTION TO MEMBERS -64,880. CHANGE IN NONADMITTED ASSETS 2,393,036. CHANGE IN UNRECOGNIZED PENSION LIABILITY 128,948. STAT BASIS ADJUSTMENT -4,609,824. FORM 990, PART IV, LINE 12 AND PART XII, LINE 2B: THE ORGANIZATION RECEIVED AN AUDITED FINANCIAL STATEMENT FOR THE YEAR FOR WHICH IT IS COMPLETING THIS RETURN THAT WAS PREPARED IN ACCORDANCE WITH STATUTORY ACCOUNTING PRACTICES AS PRESCRIBED OR PERMITTED BY THE STATE OF MICHIGAN'S DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES. PRESCRIBED STATUTORY ACCOUNTING PRACTICES INCLUDE THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS' STATEMENTS OF STATUTORY ACCOUNTING PRINCIPLES, AS WELL AS STATE LAWS, REGULATIONS AND GENERAL ADMINISTRATIVE RULES. PERMITTED STATUTORY ACCOUNTING PRACTICES ENCOMPASS ALL ACCOUNTING PRACTICES NOT SO PRESCRIBED.