MAIPF Background

The Facility became effective on August 12, 1943, under the name of the Michigan Automobile Assigned Risk Plan. In 1968 the name was changed to the Michigan Automobile Insurance Plan; and in 1970, it was given its current name, the Michigan Automobile Insurance Placement Facility. Effective January 1, 1981, the Essential Insurance Act of 1979 converted the Facility from an assigned risk plan to a joint underwriting association (JUA).

A JUA is a pooling mechanism under which a limited number of companies act as servicing carriers. JUA administrative costs and operating results are shared among the member companies in proportion to their competitive market business. Member companies are all companies writing auto casualty insurance in the state of Michigan.

A Board of Governors consisting of seven representatives from participating member companies, two insurance agent representatives, and two public representatives administers the Facility. The company representatives are elected annually by the member companies. The Commissioner of Insurance appoints the agent and public representatives.

Applicants. The Facility is available to persons who (a) own a motor vehicle registered or to be registered in Michigan, or (b) have a valid driver’s license, or (c) are eligible for the restoration of their Michigan driver’s license upon the filing of proof of financial responsibility.

Commercial applicants must have their operating headquarters (the chief or usual place of business) in the state of Michigan or vehicles to be insured must be required to maintain security by Section 3102 of the Michigan Insurance Code.

Applicants may apply for coverage in the Facility through any licensed Michigan agent and may choose the servicing carrier to issue the policy. Assignments are made in accordance with the applicant’s preference whenever possible. However, placement of applications is subject to the Facility's contract with its servicing carriers.

The Servicing Carriers accept a minimum percentage of applications equal to their voluntary market share from the second prior year. Their maximum share may be three times its voluntary market share or as requested, whichever is less. For related information, see How Do I Get Auto Insurance? and Policyholders.

Facility Audits. The Facility schedules financial audits on each servicing carrier every three years. Underwriting and claim audits are alternated every other year. In addition, each servicing carrier is responsible for performing an annual internal audit.

Facility Staff. The Facility has a staff of nine, headed by the General Manager. Staff members include a Finance/Budget Manager, Processing Manager, Product Manager, and Systems Manager. The Processing and Mail Departments handle the daily application flow.

Additional Information. For additional automobile insurance information, see Related Links.

Six members currently act as JUA servicing carriers, five for private passenger business and one for commercial business. The five private passenger carriers are mandated by Section 3320 of the Michigan Insurance Code; the commercial carrier has made a voluntary commitment:

• Private Passenger: Allstate Insurance Company | Auto Club Insurance Association | Auto-Owners Insurance Company | Citizens Insurance Company of America | State Farm Mutual Auto Insurance Company
• Commercial: Amerisure Mutual Insurance Company

Agents. Chapter 12 of the Insurance Code permits licensed agents who are appointed by an insurance company writing auto casualty insurance in Michigan to submit applications to the Facility for placement. The Facility employs no insurance agents and does not authorize insurance agents to act on its behalf. The Facility has no contractual relationship with any agent, and cannot appoint or revoke an agent’s authority.

Insurance agents placing business through the Facility are recognized as producers of record. Facility applications contain a statement indicating that the producer of record is not acting on behalf of the Facility or any insurance company, but is acting on behalf of the applicant.

Producers of Record. Producers of record submit completed applications on forms provided to them by the Facility. Applications received in the Facility office are reviewed, sorted, and mailed to the appropriate servicing carrier. The producer of record is sent a notice of placement indicating the carrier to which the applicant was placed and the date processed. For related information, see Producers of Record and Newsletters & Special Mailings.

Servicing Carrier. The servicing carrier is responsible for policy issuance, premium billings, mid-term endorsements, and claims handling. All servicing carriers for JUA business utilize Facility rules and rates. Prior to use, these rules and rates must receive written approval by the Insurance Commissioner. The methodology to determine private passenger base rates is found in Section 3340 of the Michigan Insurance Code. For related information, see Servicing Carriers.

AIPSO. The Automobile Insurance Plans Service Office (AIPSO) in Johnston, Rhode Island, serves as the Facility’s central processor by providing accounting functions, ratemaking services, manual revisions, and statistical data. Producers may order a Facility manual, Symbol Pages, and subscribe to a manual update service through AIPSO. For ordering information, see Facility Manual .

HEAT® Program . The Facility also administers the HEAT® program. HEAT® is an acronym for Help Eliminate Auto Thefts. HEAT® will reward citizens for information leading to the arrest and warrant of suspected car thieves, carjackers, and the arrest and binding over for trial of suspected theft ring or chop shop members. For more information on the HEAT® program, see www.miheat.org .