Michigan Property and Casualty Guaranty Association's annual adjustment of an insured's maximum unearned premium refund.

STATE OF MICHIGAN

DEPARTMENT OF LABOR AND ECONOMIC GROWTH

OFFICE OF FINANCIAL AND INSURANCE SERVICES

Bulletin 2008-04-INS

In the matter of:

Michigan Property and Casualty Guaranty Association's annual adjustment of an

insured's maximum unearned premium refund.

Issued and entered

this &day of March 2008

By Ken Ross

Commissioner

INFORMATIONAL STATEMENT ISSUED PURSUANT TO

MCL 500.7925(2)(a) and R 500.351 OF THE MICHIGAN ADMINISTRATIVE CODE

The Property and Casualty Guaranty Association Act, MCL 500.7925(2)(a), requires the

Commissioner of Financial and Insurance Services to adjust annually an insured's

maximum refund of unearned premiums that constitutes a covered claim of the Property

and Casualty Guaranty Association (Association). The Act directs the Association not

to refund an unearned premium refund amount less than $50.00.

MCL 500.7925(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 lndex (CPI) as

calculated by the United States Department of Labor, Bureau of Statistics, using the

U.S. City Average lndex 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 I , 2007 through June 30, 2008 to $1,282.

Any questions regarding this bulletin should be directed to:

Office of Financial and lnsurance Services

Market Research Division

611 West Ottawa Street

P.O. Box 30220

Lansing, Michigan 48909-7720

Phone: (51 7) -241 -6358

Toll Free: (877) 999-6442

Ken Ross

Commissioner of Financial and lnsurance Services