Sharon Tennyson, Ph.D., Associate Professor at Cornell University testified before the Michigan House Insurance Committee on October 4, 2011 regarding Michigan’s no-fault insurance law. Tennyson noted that the current design of the no-fault system is the cause of the spiraling cost growth due to:
- Unlimited lifetime benefits burden the auto insurance system with the highest-cost cases
- Socialized insurance costs reduce private incentives to hold down costs
- Lack of cost controls shifts costs onto auto insurance
Click here to read Tennyson’s full testimony.