Member companies of the Michigan
Automobile Insurance Placement Facility (Facility) are all companies licensed
to write auto insurance in Michigan. Companies automatically become member
companies once they begin to write auto insurance in Michigan.
Participation ratios used to assess member companies are based on the
second prior calendar year's voluntary market share. For example, the Facility
assessment for the fiscal year ending September 30, 2008, was determined on the
basis of 2006 voluntary calendar year writings.
The annual assessment of the incurred Facility loss is based solely
on the second previous year's writings to the year of assessment - regardless
of the date of loss, policy year or cause of assessment. Corrections
and adjustments to a given calendar year's base data, previously reported by
the company to its statistical agent, will be accepted for a period of 1 ½
years from the close of the calendar year. For example, companies may submit
corrections to calendar year 2006 base data until June 30, 2008.
Second prior year means the second calendar year
prior to the year of the assessment. Participation
ratio means the ratio of the participating member's Michigan
premiums or exposure units to the comparable statewide totals for all
participating members.
For more information: Statute - The Insurance Code, Chapter 33 |
MAIPF of Operation (Section 11)