Michigan’s no-fault auto insurance law provides unlimited lifetime coverage for medical expenses resulting from auto accidents. To ensure the financial stability of companies providing auto insurance in Michigan, the state Legislature created the Michigan Catastrophic Claims Association (MCCA), an unincorporated non-profit association, in 1978.

The MCCA reimburses auto no-fault insurance companies for each Personal Injury Protection (medical) claim paid in excess of $480,000. That means that the policyholder's insurance company pays the first $480,000 of medical expenses and the MCCA reimburses for costs over that amount.

The 1978 law requires all insurance companies that write automobile insurance in the state of Michigan to be members of the MCCA. Companies pay an assessment to cover MCCA's liabilities and that cost is passed on to policyholders. The MCCA is subject to regulatory supervision by the Michigan Office of Financial and Insurance Regulation.