Pursuant to Public Act 3 of 2001 (“Public Act 3”), beginning July 1, 2002, the insurance companies retention in a given loss occurrence will depend upon the date the motor vehicle accident policy covering the loss was “issued” or “renewed”.
Public Act 3 of 2001 provided for a gradual increase in the member company retention level from the original amount of $250,000 to $500,000 on July 1, 2011; and thereafter increasing every two years by 6% or the increase in the consumer price index, whichever is less.
“Retention” is the dollar amount the insurance company must bear before the MCCA begins to make reimbursement.