2017-05-12T13:44:59-05:00 2016-06-30 ERNST & YOUNG US LLP 800 Yard Street Suite 200 Grandview Heights OH 43212 990 2015-07-01 382227794 Michigan Catastrophic Claims Association % JAMES D LUNSTED MICH 7349532779 17584 Laurel Park Drive North Livonia MI 481523982 JAMES D LUNSTED CONTROLLER 7349532779 2017-05-11 true DIANE L BEAN P00104972 6142245678 2015 2021-01-29 14:40:06Z James D Lunsted 17584 Laurel Park Drive North Livonia MI 481523982 2789315056 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 33 0 0 0 0 0 1320004312 1167201320 1421006009 412038198 2866870 2658 2743877191 1579242176 0 0 0 0 15728076 732297 0 0 0 1996169356 2870440759 2011897432 2871173056 731979759 -1291930880 18059974938 18509374665 18747661305 20247211196 -687686367 -1737836531 X 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 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 $545,000. THE INSURANCE COMPANY PAYS THE ENTIRE CLAIM, BUT IS REIMBURSED BY THE MCCA FOR MEDICAL COSTS OVER $545,000. 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 2015-2016 ASSESSMENT WAS $150.00 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 35 0 33 true false true 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 48152 X Dianne Lerman Director 1.0 0.0 X 0 0 0 Jeff Tagsold Director 1.0 0.0 X 0 0 0 Paul Mueller Director & Chair 1.0 0.0 X X 0 0 0 Anthony Ptasznik Director & Vice-Chair 1.0 0.0 X X 0 0 0 Carol Hutchinson Director 1.0 0.0 X 0 0 0 James D Lunsted Controller 40.0 0.0 X 137441 0 23464 Gloria Freeland Executive Director 40.0 0.0 X 187117 0 42440 William Mangold IT Manager 40.0 0.0 X 102747 0 6877 427305 0 72781 3 false true false Mondrian Investment Partners Ltd 1105 N Market Street Ste 1118 WILMINGTON DE 19801 Investment Mgmt 4120317 Centric consulting LLC PO Box 75581 CLEVELAND OH 441014755 IT Consulting 3648207 Dodge Cox 555 California Street 40th Floor SAN FRANCISCO CA 941041501 Investment Mgmt 2556976 Federated Investors Inc PO Box 641531 PITTSBURGH PA 15264 Investment Mgmt 2232437 THE PRUDENTIAL TRUST CO 30 SCRANTON OFFICE PARK MOOSIC PA 18507 Investment Mgmt 1607572 24 0 0 0 PREMIUMS EARNED 524298 1167201320 1167201320 0 0 1167201320 373044445 373044445 0 0 0 0 0 1249066633 1210072880 38993753 38993753 38993753 0 0 0 LATE CHARGE REVENUE 900099 1433 1433 0 0 MISCELLANEOUS INCOME 900099 1225 1225 0 0 2658 1579242176 1167203978 0 412038198 0 0 0 0 0 0 0 0 476403 0 0 0 0 0 0 0 367127 0 0 0 -59253 0 0 0 -114336 0 0 0 62356 0 0 0 0 0 0 0 -1294627 0 0 0 205843 0 0 0 0 0 0 0 0 0 20901241 0 0 0 -1030972 0 0 0 0 0 0 0 -13286 0 0 0 7571643 0 0 0 0 0 0 0 -87319 0 0 0 2186 0 0 0 0 0 0 0 11157 0 0 0 0 0 0 0 0 0 0 0 7449107 0 0 0 696750 0 0 0 Losses Incurred 2821708157 0 0 0 Alloc Loss Adj Exp inc 14320279 0 0 0 Membership Dues 600 0 0 0 2871173056 0 0 0 0 100 100 346952819 340913738 0 0 1000005 10185917 0 0 0 0 0 0 0 0 37872 39010 8568231 5026421 2942415 3541810 15861487066 16428078854 1336063272 1405939259 0 0 0 0 511491389 320675977 18059974938 18509374665 6420423 35352178 0 0 0 0 0 0 0 0 0 0 0 0 0 0 18741240882 20211859018 18747661305 20247211196 X 0 0 0 0 -687686367 -1737836532 -687686367 -1737836532 18059974938 18509374665 X -1291930880 282801424 0 0 0 -41020709 X false true X true false 0 8568231 5026421 3541810 3541810 PRIVATE EQUITY FUNDS 526827050 F HIGH YIELD BANK LOANS 879112209 F 1405939259 0 UNPAID LOSS RESERVES 19465364000 UNPAID LOSS ADJUSTMENT EXP RESERVES 181514000 UNEARNED ASSESSMENTS 268323000 PAYABLE FOR SECURITIES LENDING 296658018 20211859018 Central America and the Caribbean Investments 526827050 526827050 526827050 true false true false true false X X X X false false false James D Lunsted Controller 136253 0 0 0 1188 0 8778 0 14686 0 160905 0 0 0 Gloria Freeland Executive Director 174917 0 0 0 12200 0 13559 0 28881 0 229557 0 0 0 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, OUTSIDE 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 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, 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 15A & 15B - PROCESS FOR DETERMINING COMP 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, LINE 7 - EXPLANATION FOR DECREASE IN SALARIES MCCA IS REFLECTING A DECREASE IN SALARIES EXPENSE, AS WELL AS IN OTHER EXPENSE CATEGORIES, DUE TO THE CHANGE IN ALLOCATED LOST ADJUSTMENT EXPENSE RESERVES FROM FISCAL YEAR 2015 TO FISCAL YEAR 2016. FORM 990, PART XI, LINE 9 - OTHER CHANGES IN NET ASSETS OTHER REALIZED ADJUSTMENTS AS A RESULT OF ASSET IMPAIRMENT $(37,691,082) CHANGE IN UNRECOGNIZED PENSION LIABILITY $(2,229,695) MISCELLANEOUS ITEMS $(1,099,932) -------------- TOTAL OTHER CHANGES IN NET ASSETS $(41,020,709) 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.