Michigan Insurance Office: Informational Statement on Maximum Unearned Premium Refund Pursuant to MCL 500.7925(2)(a) and R 500.351 M.A.C. Supersedes Bulletin 2009-09-INS
Jun 29, 2011
Michigan’s Office of Financial and Insurance Regulation issued an informational statement pursuant to MCL 500.7925(2)(a) and R 500.351 of the Michigan Administrative Code that supersedes Bulletin 2009-09-INS:
The Property and Casualty Guaranty Association Act, MCL SOO.792S(2)(a), requires the Michigan Commissioner of Financial and Insurance Regulation to annually adjust an insured’s maximum refund of unearned premiums that constitutes a covered claim of the Property and Casualty Guaranty Association.
MCL 500.792S(2)(a) requires the annual adjustment of an insured’s maximum refund of unearned premiums, from one insolvent insurer, to reflect changes in the cost of living as prescribed by the Commissioner’s promulgated Rule.
R 500.351 of the Michigan Administrative Code requires the annual adjustment to the maximum refund amount of unearned premiums by the ratio of the national Consumer Price Index (“CPI”) as calculated by the United States Department of Labor, Bureau of Statistics, using the U.S. City Average Index for all items as of March of each year, rounded to the nearest dollar.
By issuing this informational statement, the Commissioner certifies that he has performed the CPI review and has adjusted the maximum unearned premium refund for the period from July 1, 2010 through June 30, 2011 to $1,359.00.
The maximum unearned premium refund for the most recent year was:
July 1, 2009 through June 30, 2010: -$1,328.00.
To view this bulletin on-line, click here.