Latest News 2008 Insolvencies MIIX Insurance – was placed into liquidation by the New Jersey Department of Insurance on April 9, 2008. MPCGA has received claims MIIX Insurance Company primarily impacting the Other 2 statutory account. 2008 Assessment In accordance with section 500.7941 of the Michigan Insurance Code, the Board of Governors of MPCGA has authorized a refund in the following statutory categories: $9,000,000 Automobile and $10,000,000 Other 2, checks will be mailed in September. The Board of Governors will meet in December to determine if any assessment will be authorized for 2008. Covered Claim Exclusions Net Worth Limitations Pursuant to the MPCGA Act, MPCGA may not handle claims of insureds whose net worth is greater than a certain amount. For companies liquidated prior to September 18, 2006 covered claims shall not include obligations to an insurer, insurance pool, underwriting association, or to a person who has a net worth greater than 1/10 of 1% of the aggregate premiums written by member insurers in this state in the preceding calendar year. As a result of passage of Public Act 362 of 2006, for insolvencies that occur on or after September 18, 2006, an insured will not be covered by MPCGA if its net worth exceeds $25,000,000 on the last day of the insured's last full fiscal year prior to the insurer's insolvency. MPCGA uses the aggregate net worth of the insured and all of its subsidiaries and affiliates as calculated on a consolidated basis. The $25,000,000 net worth limit will be adjusted on January 1 of each year to reflect cost of living changes, rounded to the nearest $10,000. 9/18/06 - 12/31/07 $25,000,000 1/1/08 - 12/31/08 $25,710,000 Maximum Covered Claims Prior to its amendment on September 18, 2006, the MPCGA Act provided a formula defining the maximum amount that MPCGA may pay on a given claim, other than a worker's compensation claim. For companies liquidated prior to September 18, 2006 covered claims shall not include that portion of a claim, other than a worker's compensation claim, which is in excess of 1/20 of 1% of the aggregate premiums written by member insurers in this state in the preceding calendar year. As a result of passage of Public Act 362 of 2006, the maximum amount that MPCGA may pay on a claim, other than a worker's compensation claim or a claim for personal protection insurance benefits is $5,000,000. The $5,000,000 cap will be adjusted on January 1 of each year to reflect cost of living changes, rounded to the nearest $10,000. The claim cap that is in effect at the time of payment of a claim will apply. 9/18/06 - 12/31/07 $5,000,000 1/1/08 - 12/31/08 $5,140,000 Maximum Unearned Premium Refunds The maximum unearned premium refund is adjusted annually to reflect cost of living changes. As a result of passage of Public Act 362 of 2006, unearned premium refunds of less than $50 will not be made on or after September 18, 2006. Maximum Unearned Premium Refund based on liquidation date: Date Amount 7/1/03 - 6/30/04 $ 1,119 7/1/04 - 6/30/05 $ 1,135 7/1/05 - 6/30/06 $ 1,170 7/1/06 - 6/30/07 $ 1,212 7/1/07 - 6/30/08 $ 1,282 7/1/08 – 6/30/09 $ 1,333 Insolvency Activity as of December 31, 2007 The 2001 insolvency of Reliance Insurance (PA) and the 2003 insolvencies of Home Insurance (NH), Fremont Indemnity Insurance (CA) and the Legion Insurance (PA) continue to have an impact on the workers’ compensation statutory account. Below are the total loss and expenses incurred by statutory line of business for each insolvency since 2001, along with the older open insolvencies noted as “All Other”. Total Losses Incurred as of 12/31/2007   Auto Work Comp Other 1 Other 2 HIH $ - $ 10,084,487 $ - $ - Amwest Surety $ - $ 1,016 $ - $ 914,857 Reliance $ 17,156,819 $ 68,652,525 $ 733,215 $ 11,130,419 PHICO $ - $ 5,718 $ 495 $ 1,644,095 Millers $ 933,606 $ - $ - $ - Home $ 8,908,108 $ 9,301,616 $ - $ 78,835 Fremont Indemnity $ 250 $ 41,806,822 $ - $ 18,642 Legion $ 89,431 $ 23,437,314 $ 75,303 $ 8,741,199 Casualty Reciprocal Exchange $ 7,371 $ 20,321,748 $ - $ 101,476 Shelby Casualty $ 1,039,190 $ 34,129 $ - $ - Shelby Insurance $ 85,372 $ 249,811 $ - $ 431,713 All Other $ 59,058,483 $ 47,773,158 $ 4,897.778 $ 57,577,992