Printer Friendly

AAA MICHIGAN DEEPLY DISAPPOINTED WITH LEGISLATIVE ACTION

 AAA MICHIGAN DEEPLY DISAPPOINTED WITH LEGISLATIVE ACTION
 DEARBORN, Mich., April 1 /PRNewswire/ -- AAA Michigan expressed


deep disappointment today (April 1) with the state Legislature for approving a no-fault insurance reform package that does little to control medical and legal costs while mandating a 15 percent rate cut. According to AAA, the bill also creates massive confusion among policyholders about the rates they will
receive. Despite this confusion, the company assured policyholders that their coverages will remain intact.
 President Robert A. Alkema said he was frustrated and angry that lawmakers failed to approve a responsible reform package after five years of discussion and debate.
 "The package that's been approved ignores the most significant factors driving up the cost of insurance -- increased litigation and skyrocketing medical costs," Alkema said. "Gov. John Engler is right when he says he will veto this measure because it lacks significant cost controls."
 Alkema said AAA Michigan supports a plan that would cut rates up to 20 percent for all motorists while preserving no-fault's key protections.
 "We believe that Michigan's motorists deserve not only immediate relief in their auto insurance rates but long-term cost controls to help keep their rates affordable. Only meaningful tort reform coupled with consumer choice on medical and liability coverages will provide significant and permanent relief for Michigan auto insurance policyholders," Alkema said.
 Addressing a related issue, Alkema noted, "If the governor vetoes the current legislation, our policyholders do not have to worry about their auto insurance protection or any confusion about insurance rates which results."
 "There will be no lapse in coverages, and our insureds will be notified of any rate adjustments as their policies are renewed," he said. "We have already notified customers whose policies renewed in April that rates may change depending on what happens in Lansing.
 "We plan on continuing to work with lawmakers to draft a compromise proposal that responsibly cuts rates, controls costs and preserves Michigan's no-fault insurance system," Alkema added.
 -0- 4/1/92
 /CONTACT: Tom Freel of AAA Michigan, 313-336-1512/ CO: AAA Michigan ST: Michigan IN: INS AUT SU: LEG


ML -- DE022 -- 4047 04/01/92 16:34 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 1, 1992
Words:354
Previous Article:UNION MOVEMENT TAKES TO THE STREETS
Next Article:STUDY: UNDER THE BUSH PLAN, ONLY SICK PEOPLE WOULD BUY HEALTH INSURANCE
Topics:


Related Articles
ALLNET JOINS AAA AS NEWEST 'SHOW YOUR CARD' PARTNER
CLARIFICATION ON AAA MICHIGAN
ROAD-STRANDED MOTORISTS GET TOP PRIORITY FROM AUTO CLUB EMERGENCY CREWS
AAA OF MICHIGAN APPLAUDS UNDERAGE DRINKING LAW
FIRST WINTER SNOW CREATES ERS CALLS
NAACP AND AAA MICHIGAN ANNOUNCE NEW CONSUMER PROGRAM
SECRETARY MILLER ANNOUNCES TABS BY FAX; AAA MICHIGAN ANNOUNCES FREE FAX SERVICE FOR MEMBERS
NATIONAL AAA SAYS NATIONAL HIGHWAY SYSTEM WILL SAVE MICHIGAN LIVES
AAA Michigan Announces 800 Number for Bad Roads
More Than 1,350 Call AAA Michigan Hotline

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters