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Catastrophic Rate Increase to Get Senate Review

Updated: Thu 6:27 PM, Mar 25, 2004

The Michigan state senate will open hearings on how an obscure state committee decided to increase insurance rate which some say are outrageous.

The Catastrophic Claims Commission makes all of its decisions in secret. Lansing state senator Virg Bernero wants to force that decision making process into the open.

Drivers currently contribute $100 a year into the fund. The money is tacked on to car insurance. Recently the Commission announced it would increase the amount by $27.

The catastrophic fund was created to pay for severe injuries not covered by normal car insurance.


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