2022-05-16T15:22:15-05:00 2021-06-30 ERNST & YOUNG US LLP 2100 ONE PPG PLACE PITTSBURGH PA 15222 990 2020-07-01 382227794 Michigan Catastrophic Claims Association % JAMES D LUNSTED MICH 7349532779 17584 LAUREL PARK DRIVE NORTH LIVONIA MI 481523982 JAMES D LUNSTED CONTROLLER 7349532779 2022-05-16 true JAMES D LUNSTED 999009999 EILEEN M WEBB P01641852 4146447800 2022-05-16 3 2020 2022-09-23 18:48:47Z JAMES D LUNSTED 17584 LAUREL PARK DRIVE NORTH LIVONIA MI 481523982 10130806528 false 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 49 0 0 0 0 0 1601625497 883085753 708217087 3662780029 1111 911589 2309843695 4546777371 0 0 0 0 8208154 10155183 0 0 0 1610470536 2212514631 1618678690 2222669814 691165005 2324107557 23433288139 27293743315 20996075757 22254467018 2437212382 5039276297 X SEE SCHEDULE O false false 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 $580,000. THE INSURANCE COMPANY PAYS THE ENTIRE CLAIM BUT IS REIMBURSED BY THE MCCA FOR MEDICAL COSTS OVER $580,000. 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 2020-2021 ASSESSMENT WAS $100.00 PER VEHICLE. false false false false false false false false false true true false false true false false false false false true false false false false false false false false true false false false false false false false false false false false false false false true 36 0 true 49 true false true CJ false false false false false false X 5 5 false false false false true false true true true false false false true true true true true true true false X JAMES D LUNSTED 7349532779 17584 LAUREL PARK DRIVE NORTH LIVONIA MI 481523982 X R Kevin Clinton Executive Director 40.0 0.0 X 449922 0 27069 Joseph Erhardt General Counsel 40.0 0.0 X 422383 0 30081 Annette Flood Assistant Executive Director 40.0 0.0 X 372610 0 50368 Kathryn Miller Assistant General Counsel 40.0 0.0 X 286054 0 37920 James D Lunsted Controller 40.0 0.0 X 226827 0 37260 William Mangold IT Manager 40.0 0.0 X 188511 0 18559 Laura Kocot Claims Manager 40.0 0.0 X 164977 0 40338 Ted Reinbold Director 1.0 0.0 X 0 0 0 Tina Schott Director 1.0 0.0 X 0 0 0 Steve Harr Director & Chair 1.0 0.0 X X 0 0 0 Chris Cleveland Director & Vice Chair 1.0 0.0 X X 0 0 0 Anthony Ptasznik Director 1.0 0.0 X 0 0 0 2111284 0 241595 7 false true false Mondrian Investment Partners 1105 N Market Street Ste 1118 WILMINGTON DE 19801 Investment mgmt 4501935 Dodge Cox 555 California Street 40th Floor SAN FRANCISCO CA 941041501 Investment mgmt 3090473 Federated Hermes PO Box 641531 PITTSBURGH PA 152641531 Investment mgmt 2824685 Prudential Insurance Company of Ame PO Box 5262 NEW YORK NY 100875262 Investment mgmt 2599206 Centric Consulting LLC PO BOX 75581 CLEVELAND OH 441014755 It Support 2977499 21 0 PREMIUMS EARNED 524298 883085753 883085753 883085753 1434316448 1434316448 0 0 0 0 0 7812492738 5584029157 2228463581 2228463581 2228463581 0 0 0 0 0 0 0 0 0 LATE CHARGE REVENUE 900099 911574 911574 MISCELLANEOUS INCOME 900099 15 15 911589 4546777371 883997342 0 3662780029 X 0 0 0 0 1030757 0 7266362 600933 804904 452227 0 972396 289357 0 0 24924765 440189 0 -68973 32066589 0 120040 -142888 0 -1680 0 0 -6024748 1086904 LOSSES INCURRED 2144095260 ALLOCATED LOSS ADJUSTMENT 14757420 2222669814 0 0 607239542 690745971 0 0 5703414 7991012 0 0 0 0 0 0 0 0 41548 63276 8687352 8627988 295148 59364 20675520659 23391264646 1900739781 2502445008 0 0 0 0 243748047 701174038 23433288139 27293743315 60686355 361046442 0 0 0 0 0 0 0 0 0 0 0 0 0 0 20935389402 21893420576 20996075757 22254467018 X 0 0 0 0 2437212382 5039276297 2437212382 5039276297 23433288139 27293743315 X 2324107557 285929265 -7972907 X X false true X true false 8687352 8627988 59364 59364 PRIVATE EQUITY FUNDS 1167367404 F HIGH YIELD BANK LOANS 1282269149 F PRIVATE CREDIT 52808455 F 2502445008 0 UNPAID LOSS RESERVE 20947449000 UNPAID LOSS ADJ EXPENSE RESERVE 282890000 UNEARNED ASSESSMENTS 141078816 PAYABLE FOR SECURITIES LENDING 522002760 21893420576 Central America and the Caribbean Investments 1167367404 1167367404 1167367404 true false true false true false X X X X false false false R Kevin Clinton Executive Director 353412 0 82500 0 14010 0 25714 0 1355 0 476991 0 0 0 James D Lunsted Controller 209017 0 14000 0 3810 0 21929 0 15331 0 264087 0 0 0 Annette Flood Assistant Executive Director 302430 0 58000 0 12180 0 22100 0 28268 0 422978 0 0 0 Joseph Erhardt General Counsel 345203 0 65000 0 12180 0 23740 0 6341 0 452464 0 0 0 William Mangold IT Manager 175671 0 11550 0 1290 0 0 0 18559 0 207070 0 0 0 Kathryn Miller Assistant General Counsel 257094 0 17470 0 11490 0 18490 0 19430 0 323974 0 0 0 Laura Kocot Claims Manager 153647 0 10640 0 690 0 14501 0 25837 0 205315 0 0 0 FORM 990, PART III, LINE 1 - ORGANIZATION'S MISSION 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, 2017, THROUGH JUNE 30, 2019, IS $555,000, AND THE MEMBER RETENTION LEVEL FOR THE PERIOD JULY 1, 2019, THROUGH JUNE 30, 2021, IS $580,000. EFFECTIVE JUNE 11, 2019, PUBLIC ACTS 21 AND 22 OF 2019, PROVIDED FOR REFORMS IN MICHIGAN'S NO-FAULT AUTO INSURANCE LAW. FOR AUTO INSURANCE POLICIES ISSUED OR RENEWED AFTER JULY 1, 2020, DRIVERS WILL HAVE THE CHOICE OF THE FOLLOWING NO-FAULT MEDICAL BENEFIT COVERAGE LEVELS: $50,000 (IF A DRIVER IS ENROLLED IN MEDICAID), $250,000, $500,000, OR UNLIMITED. DRIVERS WITH QUALIFYING HEALTH INSURANCE COVERAGE MAY CHOOSE TO OPT OUT OF PERSONAL INJURY PROTECTION (PIP) MEDICAL BENEFITS ALTOGETHER. UNDER THE NEW LAW, MCCA CONTINUES TO BE LIABLE FOR REIMBURSEMENT OF CATASTROPHIC INJURY BENEFITS PAYABLE UNDER POLICIES ISSUED OR RENEWED BEFORE JULY 2, 2020, AND FOR POLICIES AFTER JULY 1, 2020, WHERE DRIVERS MAINTAIN UNLIMITED NO-FAULT PIP MEDICAL BENEFITS. THE NEW LAW INCLUDES A MEDICARE-BASED FEE SCHEDULE THAT WILL GOVERN PAYMENTS TO MEDICAL PROVIDERS, INCLUDING DOCTORS, HOSPITALS, CLINICS AND REHABILITATION FACILITIES, FOR TREATMENT RENDERED AFTER JULY 1, 2021. FOR PRODUCTS, SERVICES AND ACCOMMODATIONS PROVIDED AFTER JULY 1, 2021, FOR WHICH THERE IS NO MEDICARE AMOUNT PAYABLE, PAYMENTS WILL BE REDUCED TO 55% OF THE PROVIDERS CHARGE DESCRIPTION MASTER IN EFFECT ON JANUARY 1, 2019, OR, IF THE PROVIDER DID NOT HAVE A CHARGE DESCRIPTION MASTER ON THAT DATE, 55% OF THE AVERAGE AMOUNT THE PROVIDER CHARGED ON THAT DATE. THE PERCENTAGE DECREASES TO 54% ON JULY 1, 2022, AND 52.5% ON JULY 1, 2023. ALTHOUGH MOST OF THE COST CONTROLS IN THE NEW LAW DO NOT TAKE EFFECT UNTIL JULY 2021, ACTUARIAL STANDARDS REQUIRE THE INCLUSION OF THE EFFECTS OF THE NEW LAW IN RESERVE ESTIMATES, AS IT IS EXPECTED TO REDUCE FUTURE PAYMENTS, WHICH REDUCE THE NEEDED RESERVES AS OF JUNE 30, 2021. THE LIABILITIES FOR LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES AS OF JUNE 30, 2021, of $21,230,339,000 REFLECT A REDUCTION OF $4,396,465,000 DUE TO THE IMPACT OF COST CONTROLS. FORM 990, PART VI, LINE 6 - MEMBERS OR STOCKHOLDERS 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, LINE 7B - DECISIONS RESERVED TO MEMBERS OR STOCKHOLDERS 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, LINE 11B - PROCESS USED TO REVIEW THE FORM 990 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, LINE 12C - PROCESS TO MONITOR FOR CONFLICTS OF INTEREST 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, LINES 15 - PROCESS FOR DETERMINING COMPENSATION A HUMAN RESOURCES CONSULTANT IS RETAINED ON AN AS NEEDED BASIS TO VALIDATE THE MARKET SALARY RANGES FOR EACH POSITION. THE MCCA PERSONNEL 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 PERSONNEL 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, LINE 19 - DOCUMENTS AVAILABLE TO THE PUBLIC 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, LINES 13, 17, 19 AND 22 EXPLANATIONS FOR NEGATIVE EXPENSES FOR LINE 13, OFFICE EXPENSES, LINE 17, TRAVEL, LINE 19, MEETINGS AND LINE 22, DEPRECIATION, MCCA IS REFLECTING NEGATIVE EXPENSES DUE TO THE CHANGE IN UNALLOCATED LOSS ADJUSTMENT EXPENSE RESERVES FROM FISCAL YEAR 2020 TO FISCAL YEAR 2021 IN WHICH THE DECREASE IN UNALLOCATED EXPENSE RESERVES WAS GREATER THAN THE AMOUNT PAID IN FISCAL YEAR 2021. FORM 990, PART XI, LINE 9 - OTHER CHANGES IN NET ASSETS OTHER REALIZED ADJUSTMENTS AS A RESULT OF ASSET IMPAIRMENT $(8,194,303) CHANGE IN UNRECOGNIZED PENSION LIABILITY $ 408,041 MISCELLANEOUS ITEMS (TAXES) $(186,645) ------------ TOTAL OTHER CHANGES IN NET ASSETS $(7,972,907) FORM 990, PART XII & PART IV, LINE 12 - FINANCIAL STATEMENTS AND REPORTING THE ORGANIZATION DID NOT RECEIVE AN AUDITED FINANCIAL STATEMENT FOR THE YEAR FOR WHICH IT IS COMPLETING THIS RETURN THAT WAS PREPARED IN ACCORDANCE WITH GAAP. 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.