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MCCA Surcharge Insurance Alert
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[QUOTE="Smit-Dog, post: 575961, member: 25436"] The Michigan OFIS is definitely supporting our position. And since it is a state-mandated surcharge, I would think that the state's position would override / trump Progressive's policy. Seems to me that this surcharge is not being applied consistently by insurance companies. A quick quote from Bike-Line, Progressive, and State Farm shows this. Insurance companies assess this charge, and can tack on a small administrative processing fee, but otherwise by law they must pass on the full surcharge amount to the MCCA. If the policy of the MCCA explicitly states that the charge should not be applied for certain vehicles, then the MCCA shouldn't be accepting those particular surcharge fees. And are companies like Progressive really passing on all collected MCCA fees on to the MCCA? I guess this is where the OFIS comes into play. I'm not sure as to the full extent of their jurisdiction or ability to enforce insurance laws, but I would hope as a consumer advocate / oversight agency they'd be able to force Progressive to drop the charges. If Progressive is not applying the policy correctly, and is collecting an MCCA surcharge when it shouldn't, and they are knowingly doing this, that is fraud. Starting 7/1/2003 at $100 per insured vehicle, it adds up quickly. If for some reason the state cannot force Progressive to start applying the state-mandated fee correctly (I can't imagine the state NOT being able to do this), then I will drop Progressive like a bad infection. Seeing as how Progressive has significant ties with motorcyclists in general (AMA, race sponsor, Honda Riders Club, bike magazine ads), they would not want a bunch of their clients to get upset about this surcharge. I think regardless I'd write the AMA and CCC on this issue. Was it the OFIS office that you contacted last year? [/QUOTE]
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MCCA Surcharge Insurance Alert
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