The Michigan Department of Insurance and Financial Services published a bulletin announcing the updated insured’s net worth limit and covered claim cap, which the Michigan Insurance Code requires to be adjusted annually.
The net worth limit and covered claim cap determine whether a covered claim is an obligation of the Michigan Property and Casualty Guaranty Association (MPCGA). When an insurer becomes insolvent, MPCGA must pay obligations that fall within the definition of covered claims.
The limits are adjusted annually to reflect the aggregate percentage change in the CPI. The updated insured’s net worth limit is $38,900,000, and the updated covered claim cap is $7,780,000. These limits are effective January 1, 2025, to December 31, 2025.
The bulletin can be found here.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.