MICHIGAN CATASTROPHIC CLAIMS ASSOC… - Form 990 Financial Data

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Financial Vulnerability Assessment (Tuckman-Chang)

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Financial Trends

Organization Details

Formation Year

1978

Legal Domicile

Principal Officer

BRANDON PACH

Phone

7349532779

Tax Period

2024-07-01 to 2025-06-30

MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION, founded in 1978, is a large national nonprofit that reported $1.6B in total revenue in fiscal year 2024. Revenue decreased 9% compared to the prior year. Expenses of $1.9B exceeded revenue, resulting in a 19% operating deficit.

Mission

MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION ("MCCA") WAS ESTABLISHED BY PUBLIC ACT 136 OF 1978, WHICH AMENDED THE NO-FAULT LAW BY ADDING SECTION 3104 EFFECTIVE JULY 1, 1978. THE LEGISLATURE CREATED MCCA BECAUSE SMALLER INSURANCE COMPANIES HAD DIFFICULTY OBTAINING REINSURANCE FOR MICHIGAN'S AUTOMOBILE NO-FAULT POLICIES, WHICH PROVIDED FOR UNLIMITED LIFETIME MEDICAL BENEFITS FOR PEOPLE WHO ARE CATASTROPHICALLY INJURED IN AUTO ACCIDENTS. THE MCCA IS AN UNINCORPORATED NON-PROFIT ASSOCIATION OF WHICH EVERY INSURER THAT SELLS AUTOMOBILE OR MOTORCYCLE COVERAGE IN MICHIGAN IS REQUIRED TO BE A MEMBER. THE MCCA IS FUNDED BY AN ANNUAL PREMIUM ASSESSMENT TO ITS MEMBER INSURANCE COMPANIES BASED ON THE NUMBER OF POLICIES COVERING AUTOMOBILES AND MOTORCYCLES WRITTEN IN MICHIGAN. THE MCCA IS REQUIRED TO ASSESS AN AMOUNT EACH YEAR THAT IS SUFFICIENT TO COVER THE LIFETIME CLAIMS OF ALL PERSONS CATASTROPHICALLY INJURED IN THAT YEAR AND IN ADDITION, MAY ADJUST FUTURE ASSESSMENTS FOR EXCESSES OR DEFICIENCIES IN PRIOR ASSESSMENTS. THESE ASSESSMENTS PROVIDE FUNDS FOR THE INDEMNIFICATION OF THOSE MEMBERS AGAINST ULTIMATE LOSS SUSTAINED UNDER STATUTORY REQUIRED PERSONAL PROTECTION INSURANCE IN EXCESS OF THE APPLICABLE AMOUNT SET FORTH IN SECTION 3104(2) OF THE MICHIGAN INSURANCE CODE. BEGINNING JULY 1, 2002, AS A RESULT OF THE ENACTMENT OF PUBLIC ACT 3 OF 2001, THE MEMBER RETENTION LEVEL INCREASED FROM $250,000 TO $300,000 AND THEN GRADUALLY INCREASED ON AN INCREMENTAL BASIS OVER A TEN-YEAR PERIOD UNTIL A $500,000 LEVEL WAS REACHED ON JULY 1, 2011. THEREAFTER, BEGINNING JULY 1, 2013, THE RETENTION WILL BE INCREASED EACH ODD NUMBERED YEAR BY 6% OR THE CONSUMER PRICE INDEX, WHICHEVER IS LESS. THE MEMBER RETENTION LEVEL FOR THE PERIOD JULY 1, 2021, THROUGH JUNE 30, 2023, IS $600,000, AND THE MEMBER RETENTION LEVEL FOR THE PERIOD JULY 1, 2023, THROUGH JUNE 30, 2025, IS $635,000. AS OF JUNE 30, 2025, THE MCCA'S ASSETS OF $23.236 BILLION WAS LESS THAN ITS THEN ESTIMATED LIABILTIES OF $25.001 BILLION, RESULTING IN AN ESTIMATED DEFICIT OF $1.764 BILLION.

Program Service Accomplishments

Program 1

THE MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION (MCCA), A PRIVATE NON-PROFIT UNINCORPORATED ASSOCIATION, WAS CREATED BY THE STATE LEGISLATURE IN 1978 BY PUBLIC ACT 136 OF 1978, WHICH AMENDED THE...

THE MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION (MCCA), A PRIVATE NON-PROFIT UNINCORPORATED ASSOCIATION, WAS CREATED BY THE STATE LEGISLATURE IN 1978 BY PUBLIC ACT 136 OF 1978, WHICH AMENDED THE NO-FAULT LAW BY ADDING SECTION 3104 EFFECTIVE JULY 1, 1978. MICHIGAN'S UNIQUE AUTO INSURANCE NO-FAULT LAW PROVIDES UNLIMITED LIFETIME COVERAGE FOR MEDICAL EXPENSES WHICH RESULT FROM AUTO ACCIDENTS. THE MCCA REIMBURSES AUTO NO-FAULT INSURANCE COMPANIES FOR EACH PERSONAL INJURY PROTECTION (PIP) MEDICAL CLAIM PAID IN EXCESS OF A SET AMOUNT. CURRENTLY THAT AMOUNT IS $635,000. THE INSURANCE COMPANY PAYS THE ENTIRE CLAIM BUT IS REIMBURSED BY THE MCCA FOR MEDICAL COSTS OVER $635,000. ALL AUTO INSURANCE COMPANIES OPERATING IN MICHIGAN ARE ASSESSED TO COVER THE CATASTROPHIC MEDICAL CLAIMS OCCURRING IN MICHIGAN. THOSE ASSESSMENTS ARE GENERALLY PASSED ON TO AUTO INSURANCE POLICYHOLDERS. THE 2024-2025 ASSESSMENT WAS $90.00 PER VEHICLE WHICH CONSISTED OF A PURE PREMIUM OF $70.00 AND A DEFICIT RECOUPMENT OF $20.00.

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Trantor Score

Financial Health Score (300–850) · Liquidity · Solvency · Sustainability · Efficiency

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Liquidity (40%) • Solvency (30%) • Sustainability (20%) • Efficiency (10%)

Financial Overview (2024)

Revenue Breakdown

Contributions & Grants $0

Program Service Revenue $574,477,574

Investment Income $1,018,648,539

Other Revenue $6,416,368

TOTAL REVENUE $1,599,542,481

Expense Breakdown

Grants Paid $0

Salaries & Benefits $17,412,423

Fundraising Expenses $0

Other Expenses $1,890,268,698

TOTAL EXPENSES $1,907,681,121

Year-over-Year Comparison

	2024	2023	Change
Revenue	$1,599,542,481	$1,760,601,496	-0.1%
Expenses	$1,907,681,121	$2,211,717,581	-0.1%
Net Income	$-308,138,640	$-451,116,085	-0.3%

Key Indicators

✗ Grants to Organizations ✗ Grants to Individuals ✗ Lobbying ✗ Political Activity ✓ Foreign Activities ✗ Donor Advised Fund ✗ Schedule B Required

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Financial Health Indicators

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Financial Distress Indicator

Liquidity & Cash Position

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Altman Z-Score • Liquidity Ratios • Solvency Analysis • Growth Indicators • Efficiency Metrics

Governance

Voting Members

Independent Members

Employees

Volunteers

N/A

Governance Policies

✓ Conflict of Interest Policy

✓ Whistleblower Policy

✓ Document Retention Policy

Special Practices & Reported Activities

✗ Operated a School

✗ Operated a Hospital

✗ Provided First Class Travel

✗ Reported Conflict of Interest

✗ Reported Asset Diversion

✗ Excess Benefit Transaction

✗ Made Political Expenditures

✗ Engaged in Lobbying

✗ Operated Donor Advised Fund

✗ Maintained Art Collections

✗ Filed Form 720

Compensation of Officers, Directors & Key Employees

Total Officers

$423,935

Total Directors

Key Employees

Highest Compensated

reported

Name	Title	Hours/Week	Role	Reportable Comp	Other Comp	Total
ROGER ODLE	DIRECTOR & CHAIR	1.00	Officer Director	$0	$0	$0
JOHN PARSONS	DIRECTOR & VICE CHAIR	1.00	Officer Director	$0	$0	$0
AMY MASS	DIRECTOR	1.00	Director	$0	$0	$0
ERIN WINTERS	DIRECTOR	1.00	Director	$0	$0	$0
MIKE WYKES	DIRECTOR	1.00	Director	$0	$0	$0
TED REINBOLD	DIRECTOR & CHAIR - PART YEAR	1.00	Officer Director	$0	$0	$0
ERIN FOGARTY	DIRECTOR - PART YEAR	1.00	Director	$0	$0	$0
KIMBERLY BEZY	EXECUTIVE DIRECTOR	40.00	Officer	$54,434	$50,267	$104,701
BRANDON PACH	CONTROLLER	40.00	Officer	$174,568	$144,666	$319,234
JOSEPH ERHARDT	ASSISTANT EXECUTIVE DIRECTOR	40.00	Highest	$496,789	$32,470	$529,259
KATHRYN MILLER	GENERAL COUNSEL	40.00	Highest	$417,588	$48,756	$466,344
WILLIAM MANGOLD III	INFORMATION SYSTEMS MGR.	40.00	Highest	$244,098	$48,225	$292,323
LAURA KOCOT	CLAIMS MANAGER	40.00	Highest	$212,099	$44,501	$256,600
WENDY HORBAL	CLAIMS MANAGER	40.00	Highest	$212,855	$41,196	$254,051
JAMES D LUNSTED	FORMER CONTROLLER	0.00		$151,777	$0	$151,777

Note: Compensation data is self-reported by the organization on their Form 990. "Reportable Comp" includes salary, bonuses, and other reportable compensation from the organization and related organizations. "Other Comp" includes benefits, deferred compensation, and non-taxable benefits.

Historical Data

Year	Revenue	Expenses	Assets	Net Income
2025	$1,599,542,481	$1,907,681,121	$23,236,293,140	$-308,138,640
2024	No data	No data	No data	No data
2023	$1,303,620,913	$-287,849,744	$21,617,618,962	$1,591,470,657
2022	$1,744,028,645	$4,428,123,975	$21,855,296,718	$-2,684,095,330
2021	$4,546,777,371	$2,222,669,814	$27,293,743,315	$2,324,107,557
2020	$2,309,843,695	$1,618,678,690	$23,433,288,139	$691,165,005
2019	$1,953,450,173	$-1,512,953,848	$21,857,498,812	$3,466,404,021
2018	$2,164,561,933	$2,478,852,607	$20,557,121,286	$-314,290,674

MICHIGAN CATASTROPHIC CLAIMS ASSOCIATION