According to the Property and Casualty Guaranty Association Act MCL 500.7901. et seq., the Director of the Department of Insurance and Financial Services is required to annually adjust an insured’s maximum refund of unearned premiums that constitutes a covered claim of the Property and Casualty Guaranty Association.

The maximum amount of unearned premiums which shall constitute a covered claim will be adjusted annually to reflect changes in the cost of living. The Director is required to perform the adjustment by determining the ratio of the national consumer price index (CPI), as calculated by the U.S. Department of Labor, for all items for March of each year to the corresponding CPI one year earlier, rounded to the nearest dollar. The Director has certified that she has performed the review and adjusted the maximum unearned premium refund for the period from July 1, 2025 to June 30, 2026, to $1,998.

The maximum unearned premium refund values for recent years are as follows: