reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2400 - Purposes and Interpretation of Chapter.

500.2400 Purposes and interpretation of chapter.
Sec. 2400.
(1) Except with respect to worker's compensation insurance, the purpose of this chapter is to promote the public welfare by regulating insurance rates to the end that they shall not be excessive, inadequate, or unfairly discriminatory, and to authorize and regulate cooperative action among insurers in rate-making and in other matters within the scope of the insurance code. Nothing in this chapter is intended (1) to prohibit or discourage reasonable competition, or (2) to prohibit, or encourage except to the extent necessary to accomplish the aforementioned purpose, uniformity in insurance rates, rating systems, rating plans, or practices.
(2) With respect to worker's compensation insurance, the purposes of this chapter are:
(a) To protect policyholders and the public against the adverse effects of excessive, inadequate, or unfairly discriminatory rates.
(b) To promote price competition among insurers writing worker's compensation insurance so as to encourage rates which will result in the lowest possible rates consistent with the benefits established in the worker's disability compensation act of 1969, Act No. 317 of the Public Acts of 1969, as amended, being sections 418.101 to 418.941 of the Michigan Compiled Laws, and with maintaining the solvency of insurers.
(c) To provide regulatory controls and other activity in the absence of competition.
(d) To improve the availability, fairness, and reliability of worker's compensation insurance.
(3) This chapter shall be liberally interpreted to carry into effect the provisions of this section.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1982, Act 8, Eff. Jan. 1, 1983
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2400a - Repealed. 1993, Act 200, Eff. Dec. 28, 1994.

500.2400a Repealed. 1993, Act 200, Eff. Dec. 28, 1994.
Compiler's Notes:
The repealed section pertained to applicability of act to state accident fund.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2404 - Secondary or Merit Rating Plan for Commercial Liability Insurance Rates; Rating Plan for Medical Malpractice Insurance; Limitations; “Commercial Liability Insurance” Defined.

500.2404 Secondary or merit rating plan for commercial liability insurance rates; rating plan for medical malpractice insurance; limitations; “commercial liability insurance” defined.
Sec. 2404.
(1) Each authorized insurer which delivers or issues for delivery commercial liability insurance policies in this state shall develop and establish a secondary or merit rating plan for commercial liability insurance rates. A merit rating plan required under this section shall adjust rates for commercial liability insurance policies on the basis of risk management technique implemented by the insured.
(2) An insurer's rating plan for medical malpractice insurance may provide for a premium surcharge based upon the filing of an action against the insured, subject to all of the following limitations:
(a) The surcharge plan shall be filed with the commissioner.
(b) A surcharge shall not be based on an action that was filed more than 3 years immediately preceding the issuance or renewal of the policy.
(c) A surcharge shall not be based on an action for which the insured has been adjudged not liable or which has been dismissed or settled without indemnity being paid on behalf of the insured.
(d) A surcharge shall not be based on an action for which the insurer pays, on behalf of the insured, indemnity and loss adjustment expenses with respect to such action in an amount that is less than 51% of the annual premium paid by the insured for the policy period covering such action.
(3) As used in this section, "commercial liability insurance" means insurance which provides indemnification for commercial, industrial, professional, or business liabilities.
History:
Add. 1986, Act 173, Imd. Eff. July 7, 1986
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2405 - Liquor Liability Insurance Policies; Server Training Discount Plan; Certified Server Training Course.

500.2405 Liquor liability insurance policies; server training discount plan; certified server training course.
Sec. 2405.
Each insurer which delivers or issues for delivery liquor liability insurance policies in this state shall develop and maintain a server training discount plan pursuant to this section. A server training discount plan required under this section shall provide for a premium discount for liquor liability insurance policies based upon the completion of a certified server training course in compliance with the provisions of the Michigan liquor control act, Act No. 8 of the Public Acts of the Extra Session of 1933, being sections 436.1 to 436.58 of the Michigan Compiled Laws.
History:
Add. 1986, Act 173, Imd. Eff. July 7, 1986
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2408 - Review of Filings by Commissioner; Purpose; Waiting Period; Extension; Effective Date of Filing; Special Filing; Section Inapplicable to Worker's Compensation Insurance.

500.2408 Review of filings by commissioner; purpose; waiting period; extension; effective date of filing; special filing; section inapplicable to worker's compensation insurance.
Sec. 2408.
(1) The commissioner shall review filings as soon as reasonably possible after they have been made in order to determine whether the filings meet the requirements of this chapter.
(2) Subject to the exception specified in subsection (3), each filing whether or not accompanied by supporting information shall be on file for a waiting period of 15 days before it becomes effective, which period may be extended by the commissioner for 1 additional period not to exceed 15 days if the commissioner gives written notice within the waiting period to the insurer or rating organization which made the filing that he or she needs additional time for the consideration of the filing. Upon written application by the insurer or rating organization, the commissioner may authorize a filing which he or she has reviewed to become effective before expiration of the waiting period or any extension thereof. A filing whether or not accompanied by supporting information shall be considered to meet the requirements of this chapter unless disapproved by the commissioner within the waiting period or extension thereof. Except, if a filing is not accompanied by supporting information and the information is required by the commissioner under section 2406(1), the filing shall be considered to meet the requirements of this chapter unless disapproved by the commissioner within 15 days after the information is furnished.
(3) Any special filing with respect to a surety or guaranty bond required by law, or by court or executive order, or by order, rule, or regulation of a public body, not covered by a previous filing, shall become effective when filed and shall be considered to meet the requirements of this chapter until such time as the commissioner reviews the filing and so long thereafter as the filing remains in effect.
(4) This section shall not apply to worker's compensation insurance filings made pursuant to section 2406(3), (4), and (5).
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1982, Act 8, Eff. Jan. 1, 1983
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2409 - Repealed. 2016, Act 101, Eff. Aug. 1, 2016.

500.2409 Repealed. 2016, Act 101, Eff. Aug. 1, 2016.
Compiler's Notes:
The repealed section pertained to report delineating classifications and kinds or types of insurance where competition does not exist.
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2409a - Repealed. 2016, Act 101, Eff. Aug. 1, 2016.

500.2409a Repealed. 2016, Act 101, Eff. Aug. 1, 2016.
Compiler's Notes:
The repealed section pertained to certification by commissioner and resolution by legislature that reasonable degree of competition does not exist with respect to worker compensation insurance market and inclusion of plan in report under MCL 500.2409.
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2409b - Repealed. 2016, Act 104, Eff. Aug. 1, 2016.

500.2409b Repealed. 2016, Act 104, Eff. Aug. 1, 2016.
Compiler's Notes:
The repealed section pertained to report detailing state of availability in liquor liability insurance market.
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2409c - Repealed. 2016, Act 99, Eff. Aug. 1, 2016.

500.2409c Repealed. 2016, Act 99, Eff. Aug. 1, 2016.
Compiler's Notes:
The repealed section pertained to public hearing to determine whether reasonable degree of competition in commercial liability insurance market exists.
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2410 - Filing Requirements; Modification or Suspension by Insurance Commissioner.

500.2410 Filing requirements; modification or suspension by insurance commissioner.
Sec. 2410.
Under such rules and regulations as he shall adopt the commissioner may, by written order, suspend or modify the requirement of filing as to any kind of insurance, subdivision or combination thereof, or as to classes of risks, the rates for which cannot practicably be filed before they are used. Such orders, rules and regulations shall be made known to insurers and rating organizations affected thereby. The commissioner may make such examination as he may deem advisable to ascertain whether any rates affected by such order meet the standards set forth in section 2403 (1) (d) (rate standards).
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2411 - Rates and Rating Systems; Classifications; Merit Rating Plan; Use of Single Enterprise Rule or Similar Rule Prohibited.

500.2411 Rates and rating systems; classifications; merit rating plan; use of single enterprise rule or similar rule prohibited.
Sec. 2411.
(1) Rates and rating systems used by any insurer with regard to worker's compensation insurance within this state shall conform to the applicable requirements of this section.
(2) Classifications used by an insurer shall be based upon 1 or more of the following:
(a) The industry group to which an employer belongs.
(b) Similarity of expected losses as reflected by similarities in pure premium and similarities in operations of employers insured.
(c) Similarity of risk of compensable injury as reflected by the type of work performed by employees.
(d) Other factors that would encourage innovation and would encourage insurers to minimize the risk of loss from hazards insured against and would be consistent with both the statistical plan approved by the commissioner and the purposes of this chapter.
(3) Each insurer shall establish a merit rating plan for worker's compensation insurance whereby an insured's premium is modified either prospectively or retrospectively. The plans required under this subsection shall provide for premium surcharges or credits based upon loss experience within a specified period or other factors which are reasonably related to risk of loss. The plan shall provide for sufficient premium differentials so as to encourage safety and adequately reward employers without a claim during the merit rating period. The sensitivity of a rating system may vary by size of the risk involved.
(4) The single enterprise rule or similar rule requiring a worker's compensation insured to be classified according to the entire business in which the insured is engaged shall not be used. Upon request of an insured, an insurer shall classify employees in separate operations of a business in different classifications consistent with the insurers' rate system filing if payroll information is supplied to the insurer for each operation requested to be in a separate classification.
History:
Add. 1982, Act 8, Eff. Jan. 1, 1983
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2412 - Filing Requirements; Adherence by Insurer.

500.2412 Filing requirements; adherence by insurer.
Sec. 2412.
No insurer shall make or issue a contract or policy except in accordance with filings which are in effect for said insurer as provided in this chapter or in accordance with sections 2410 or 2414.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2414 - Filing Requirements; Excess Rates on Specific Risks.

500.2414 Filing requirements; excess rates on specific risks.
Sec. 2414.
Upon the written application of the insured, stating his reasons therefor, filed with and approved by the commissioner, a rate in excess of that provided by a filing otherwise applicable may be used on any specific risk.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1970, Act 180, Imd. Eff. Aug. 3, 1970
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2416 - Disapproval of Filing; Notice; Waiting Period.

500.2416 Disapproval of filing; notice; waiting period.
Sec. 2416.
(1) If within the waiting period or any extension thereof as provided in subsection (2) of section 2408, the commissioner finds that a filing does not meet the requirements of this chapter, he shall send to the insurer or rating organization which made such filing written notice of disapproval of such filing specifying therein what respects he finds such filing fails to meet the requirements of this chapter and stating that such filing shall not become effective.
(2) If within 30 days after a special surety or guaranty filing subject to subsection (3) of section 2408 has become effective, the commissioner finds that such filing does not meet the requirements of this chapter, he shall send to the insurer or rating organization which made such filing written notice of disapproval of such filing specifying therein in what respects he finds that such filing fails to meet the requirements of this chapter and stating when, within a reasonable period thereafter, such filing shall be deemed no longer effective. Said disapproval shall not affect any contract made or issued prior to the expiration of the period set forth in said notice.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2418 - Disapproval of Filing After Approval; Hearing; Notice; Procedure.

500.2418 Disapproval of filing after approval; hearing; notice; procedure.
Sec. 2418.
If at any time after approval of any filing either by act or order of the commissioner or by operation of law, or before approval of a filing made by a worker's compensation insurer controlled by a nonprofit health care corporation operating pursuant to the nonprofit health care corporation reform act, 1980 PA 350, MCL 550.1101 to 550.1704, the commissioner finds that a filing does not meet the requirements of this chapter, the commissioner shall, after a hearing held upon not less than 10 days' written notice, specifying the matters to be considered at the hearing, to every insurer and rating organization that made the filing, issue an order specifying in what respects the commissioner finds that the filing fails to meet the requirements of this chapter, and stating for a filing that has gone into effect when, within a reasonable period thereafter, that filing shall be considered no longer effective. A copy of the order shall be sent to every insurer and rating organization subject to the order. The order shall not affect any contract or policy made or issued before the date the filing becomes ineffective as indicated in the commissioner's order.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1993, Act 200, Eff. Dec. 28, 1994 ;-- Am. 2008, Act 241, Imd. Eff. July 17, 2008
Compiler's Notes:
Section 3 of Act 200 of 1993 provides as follows:“Section 3. This amendatory act shall not take effect unless the state administrative board certifies in writing to the secretary of state by December 31, 1994 that an agreement for the transfer of all or substantially all of the assets and the assumption of all or substantially all of the liabilities of the state accident fund has been consummated with a permitted transferee pursuant to the requirements of section 701a of the worker's disability compensation act of 1969, Act No. 317 of the Public Acts of 1969, being section 418.701a of the Michigan Compiled Laws.”
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2419 - Excessive Premium Charges for Worker's Compensation Insurance; Personal Meeting With Management Representative; Providing Reserve and Redemption Information to Insured Upon Request; Determination of Dispute by Commissioner; Rules; Redemption of Worker's Compensation Claim; Notice.

500.2419 Excessive premium charges for worker's compensation insurance; personal meeting with management representative; providing reserve and redemption information to insured upon request; determination of dispute by commissioner; rules; redemption of worker's compensation claim; notice.
Sec. 2419.
(1) An insured who has reason to believe that the insured's premium charges for worker's compensation insurance are excessive as a result of unreasonable reserves or the unreasonable redemption of a claim shall be entitled to a personal meeting with a management representative of the insurer.
(2) Upon receipt of a written request by the insured, the insurer shall provide within 30 days of the receipt of the request reserve and redemption information with regard to worker's compensation insurance which is pertinent to the premiums charged for that insurance.
(3) If a meeting between the insured and the management representative of the insurer under subsection (1) fails to resolve the dispute, the insured shall be entitled to a determination of the dispute by the commissioner. The commissioner shall promulgate rules pursuant to Act No. 306 of the Public Acts of 1969, as amended, being sections 24.201 to 24.315 of the Michigan Compiled Laws, establishing procedures for a determination under this subsection. The procedures shall provide for determinations to be made on a timely and informal basis.
(4) Upon written request of an insured, an insurer shall not redeem a worker's compensation claim without giving 10 business days' prior notice to the insured by first class mail, return receipt requested.
History:
Add. 1982, Act 7, Eff. Jan. 1, 1983
Popular Name:
Act 218
Admin Rule:
R 500.1351 et seq. of the Michigan Administrative Code.
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2421 - Insurer Authorized to Write Worker's Compensation Insurance; Prohibited Acts.

500.2421 Insurer authorized to write worker's compensation insurance; prohibited acts.
Sec. 2421.
As a condition of maintaining its certificate of authority, an insurer authorized to write worker's compensation insurance shall not do any of the following:
(a) Be a member of a rating organization in this state for worker's compensation insurance or have any rates, rules, or forms filed on its behalf with regard to worker's compensation insurance in this state by a rating organization.
(b) Except as necessary to operate the residual market under chapter 23, agree with any other insurer or with an advisory organization to adhere to or use any rate, rating plan, rating schedule, rating rule, or underwriting rule with regard to worker's compensation insurance in this state.
(c) Make any agreement with any other insurer, advisory organization, or any other person which has the purpose or effect of restraining trade or of substantially lessening competition with regard to worker's compensation insurance in this state.
History:
Add. 1982, Act 7, Eff. Jan. 1, 1983
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2426 - Manual of Classifications, Rules and Rating Plans; Rates Meeting Standards.

500.2426 Manual of classifications, rules and rating plans; rates meeting standards.
Sec. 2426.
No manual of classifications, rule, rating plan, or any modification of any of the foregoing which measures variations in hazards or expense provisions, or both, and which has been filed pursuant to the requirements of this chapter shall be disapproved if the rates thereby produced meet the requirements of section 2403 (1) (d) (rate standards).
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2431 - Group Rated Automobile Insurance; MCL 500.2430 Inapplicable.

500.2431 Group rated automobile insurance; MCL 500.2430 inapplicable.
Sec. 2431.
Section 2430 does not apply to group rated automobile insurance.
History:
Add. 1969, Act 346, Eff. Apr. 1, 1970 ;-- Am. 1982, Act 7, Eff. Jan. 1, 1983
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2434 - Malpractice Insurance for Physicians; Rating Classifications; Furnishing Classifications to Legislature and Governor.

500.2434 Malpractice insurance for physicians; rating classifications; furnishing classifications to legislature and governor.
Sec. 2434.
(1) The commissioner, after consultation with associations representative of physician interests and with authorized insurers writing malpractice insurance for physicians in this state shall prescribe the rating classifications for use by insurers in writing malpractice insurance for physicians.
(2) Before 1 year after the effective date of chapter 49 and before implementing the rating classifications prescribed pursuant to subsection (1), the commissioner shall furnish to the legislature and the governor the rating classifications which he or she intends to prescribe pursuant to this section.
History:
Add. 1986, Act 173, Imd. Eff. July 7, 1986
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2436 - Application for License as Rating Organization; Issuance of License by Commissioner; Fee; Duration; Notification of Changes.

500.2436 Application for license as rating organization; issuance of license by commissioner; fee; duration; notification of changes.
Sec. 2436.
(1) A corporation, an association, a partnership, or an individual, whether located within or outside this state, may make application to the commissioner for a license as a rating organization to make rates and insurance contract forms for the kinds of insurance or subdivisions thereof, except for worker's compensation insurance, as are specified in its application and shall file with the application all of the following:
(a) A copy of its constitution, its articles of agreement or association, or its certificate of incorporation, and of its bylaws and rules governing the conduct of its business.
(b) A list of its members and subscribers.
(c) The name and address of a resident of this state upon whom notices or orders of the commissioner or process affecting the rating organization may be served.
(d) A statement of its qualifications as a rating organization.
(2) If the commissioner finds that the applicant is competent, trustworthy, and otherwise qualified to act as a rating organization and that its constitution, articles of agreement or association, or certificate of incorporation, and its bylaws and rules governing the conduct of its business conform to the requirements of law, he or she shall issue a license specifying the kinds of insurance or subdivisions thereof for which the applicant is authorized to act as a rating organization. Every application shall be granted or denied in whole or in part by the commissioner within 60 days of the date of its filing with the commissioner.
(3) The fee for the license shall be $25.00 which shall be in lieu of all other fees, licenses, or taxes imposed by the state or any political subdivision of the state.
(4) Licenses issued pursuant to this section shall remain in force for 3 years from date of issuance unless suspended or revoked by the commissioner, after hearing upon notice, pursuant to section 2478, in the event the rating organization ceases to meet the requirements of this section.
(5) Every rating organization shall notify the commissioner promptly of every change in any of the following:
(a) Its constitution, its articles of agreement or association, or its certificate of incorporation, and its bylaws and rules governing the conduct of its business.
(b) Its list of members and subscribers.
(c) The name and address of the resident of this state designated by it upon whom notices or orders of the commissioner or process affecting the rating organization may be served.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1970, Act 180, Imd. Eff. Aug. 3, 1970 ;-- Am. 1982, Act 7, Eff. Jan. 1, 1983
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2438 - Rating Organizations; Subscribers; Notice of Changes in Rules; Furnishing of Service Without Discrimination; Review; Order.

500.2438 Rating organizations; subscribers; notice of changes in rules; furnishing of service without discrimination; review; order.
Sec. 2438.
(1) Subject to rules and regulations which have been approved by the commissioner as reasonable, each rating organization shall permit any insurer, not a member, to be a subscriber to its rating services for any kind of insurance or subdivision thereof for which it is authorized to act as a rating organization. Notice of proposed changes in such rules and regulations shall be given to subscribers. Each rating organization shall furnish its rating services without discrimination to its members and subscribers.
(2) The reasonableness of any rule or regulation in its application to subscribers, or the refusal of any rating organization to admit an insurer as a subscriber, shall, at the request of any subscriber or any such insurer, be reviewed by the commissioner at a hearing held upon at least 10 days' written notice to such rating organization and to such subscriber or insurer. If the commissioner finds that such rule or regulation is unreasonable in its application to subscribers, he shall order that such rule or regulation shall not be applicable to subscribers.
(3) If the rating organization fails to grant or reject an insurer's application for subscribership within 30 days after it was made, the insurer may request a review by the commissioner as if the application had been rejected. If the commissioner finds that the insurer has been refused admittance to the rating organization as a subscriber without justification, he shall order the rating organization to admit the insurer as a subscriber. If he finds that the action of the rating organization was justified, he shall make an order affirming its action.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2440 - Rating Organizations; Rules Affecting Payment of Dividends, Savings or Unabsorbed Premium.

500.2440 Rating organizations; rules affecting payment of dividends, savings or unabsorbed premium.
Sec. 2440.
No rating organization shall adopt any rule the effect of which would be to prohibit or regulate the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2446 - Rating Organizations; Cooperation With Other Rating Organizations and Insurers, Discontinuance.

500.2446 Rating organizations; cooperation with other rating organizations and insurers, discontinuance.
Sec. 2446.
Cooperation among rating organizations or among rating organizations and insurers in rate making or in other matters within the scope of this chapter is hereby authorized, provided the filings resulting from such cooperation are subject to all the provisions of this chapter which are applicable to filings generally. The commissioner may review such cooperative activities and practices and if, after a hearing, he finds that any such activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, he may issue a written order specifying in what respects such activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, and requiring the discontinuance of such activity or practice.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2450 - Rating Organizations; Deviation From Filings, Procedure, Termination of Deviation.

500.2450 Rating organizations; deviation from filings, procedure, termination of deviation.
Sec. 2450.
(1) Every member of or subscriber to a rating organization shall adhere to the filings made on its behalf by such organization except that any such insurer may make written application to the commissioner to file a deviation from the class rates, schedules, rating plans or rules respecting any kind of insurance, or class of risk within a kind of insurance, or combination thereof. Such application shall specify the basis for the modification and a copy shall also be sent simultaneously to such rating organization. In considering the application to file such deviation the commissioner shall give consideration to the available statistics and the principles for rate making provided in section 2403. The commissioner shall issue an order permitting the deviation for such insurer to be filed if he finds it to be justified and it shall thereupon become effective. He shall issue an order denying such application if he finds that the deviation applied for does not meet the requirements of this chapter.
(2) Each deviation permitted to be filed shall remain in effect for a period of not less than 1 year from the effective date unless sooner withdrawn by the insurer with the approval of the commissioner or until terminated in accordance with the provisions of sections 2418 or 2420.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1964, Act 146, Eff. Aug. 28, 1964
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2452 - Rating Organizations; Alternative Deviation, Without Waiting Period, Procedure, Termination of Deviation.

500.2452 Rating organizations; alternative deviation, without waiting period, procedure, termination of deviation.
Sec. 2452.
(1) In lieu of the requirements of section 2450 for deviation and as an alternative method for deviation every member of or subscriber to a rating organization shall adhere to the filings made on its behalf by such organization except that any such insurer may make application to the commissioner to file a deviation from the class rates, schedules, rating plans or rules respecting any kind of insurance, or class of risk within a kind of insurance, or combination thereof. Such application shall specify the basis for the modification and a copy shall also be sent simultaneously to such rating organization. Every such application shall become effective immediately as of the date filed with the commissioner. In considering the application to file such deviation the commissioner shall give consideration to the available statistics and the principles for rate making provided in section 2403. The commissioner shall issue an order approving of the deviation as filed if he finds it meets the requirements of section 2403. If the commissioner finds that the deviation does not comply with the requirements of this chapter, he may issue an order determining wherein and to what extent such proposal is deemed to be improper and fixing a date thereafter, within a reasonable time, after which such deviation shall no longer be effective. Any order of disapproval under this section must be entered within 30 days of the date the application for the deviation affected is filed with the commissioner. If such deviation shall be disapproved, the insuring provisions of any contract or policy issued prior to the time the order becomes effective shall not be affected. But if the commissioner disapproves such deviation as not being in compliance with section 2403, he may order an adjustment of the premium to be made with the policyholder either by refund or collection of additional premium, if the amount is substantial and equals or exceeds the cost of making the adjustment.
(2) Each deviation filed and so approved shall remain in effect for a period of not less than 1 year from the effective date unless sooner withdrawn by the insurer with the approval of the commissioner or until terminated in accordance with the provisions of sections 2418 or 2420.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1964, Act 146, Eff. Aug. 28, 1964
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2456 - Rating Organizations; Subscriber Appeal to Insurance Commissioner From Action by Organization.

500.2456 Rating organizations; subscriber appeal to insurance commissioner from action by organization.
Sec. 2456.
(1) Any member of or subscriber to a rating organization may appeal to the commissioner from the action or decision of such rating organization in approving or rejecting any proposed change in or addition to the filings of such rating organization and the commissioner shall, after a hearing held upon not less than 10 days' written notice to the appellant and to such rating organization, issue an order approving the action or decision of such rating organization or directing it to give further consideration to such proposal, or, if such appeal is from the action or decision of the rating organization in rejecting a proposed addition to its filings, he may, in the event he finds that such action or decision was unreasonable, issue an order directing the rating organization to make an addition to its filing, on behalf of its members and subscribers, in a manner consistent with his findings, within a reasonable time after the issuance of such order.
(2) If such appeal is based upon the failure of the rating organization to make a filing on behalf of such member or subscriber which is based on a system of expense provisions which differs, in accordance with the right granted in section 2403 (1) (b) from the system of expense provisions included in a filing made by the rating organization, the commissioner shall, if he grants the appeal, order the rating organization to make the requested filing for use by the appellant. In deciding such appeal the commissioner shall apply the standards set forth in section 2403.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2458 - Furnishing Information as to Rates; Hearings for Persons Aggrieved by Rating System; Appeal; Representation.

500.2458 Furnishing information as to rates; hearings for persons aggrieved by rating system; appeal; representation.
Sec. 2458.
Each rating organization and insurer that makes its own rates, within a reasonable time after receiving written request for the information and on payment of a reasonable charge, shall furnish to an insured affected by a rate made by the rating organization or insurer, or to the insured's authorized representative, all pertinent information as to the rate. Pertinent information under this section does not include information that is a trade secret as determined by the director under section 2108(5) or 2406(6). Each rating organization and insurer that makes its own rates shall provide within this state reasonable means for a person aggrieved by the application of its rating system to be heard, in person or by his or her authorized representative, on his or her written request to review the manner in which the rating system has been applied in connection with the insurance afforded to him or her. If the rating organization or insurer fails to grant or reject the request within 30 days after it is made, the applicant may proceed in the same manner as if his or her application had been rejected. A party affected by the action of the rating organization or insurer on the request may appeal, within 30 days after written notice of the action, to the director, who, after a hearing held on not less than 10 days' written notice to the appellant and to the rating organization or insurer, may affirm or reverse the action. A person who requests a hearing before the director under this section may be represented at the hearing by an attorney. A person, other than an individual, that requests a hearing before the director under this section may also be represented by an officer or employee of that person. An individual who requests a hearing before the director under this section may also be represented by a relative of the individual.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1988, Act 262, Imd. Eff. July 15, 1988 ;-- Am. 2015, Act 141, Eff. Jan. 11, 2016
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2462 - Advisory Organizations; Definition; Filing; Discontinuance of Unfair or Unreasonable Practices; Rate Filings; Violation.

500.2462 Advisory organizations; definition; filing; discontinuance of unfair or unreasonable practices; rate filings; violation.
Sec. 2462.
(1) Every group, association or other organization of insurers, whether located within or outside this state, which assists insurers which make their own filings or rating organizations in rate making, by the collection and furnishing of loss or expense statistics, or by the submission of recommendations, but which does not make filings under this chapter, shall be known as an advisory organization.
(2) Every advisory organization shall file with the commissioner:
(a) A copy of its constitution, its articles of agreement or association or its certificate of incorporation and of its bylaws, rules and regulations governing its activities,
(b) A list of its members,
(c) The name and address of a resident of this state upon whom notices or orders of the commissioner or process issued at his direction may be served, and
(d) An agreement that the commissioner may examine such advisory organization in accordance with the provisions of section 2468.
(3) If, after a hearing, the commissioner finds that the furnishing of such information or assistance involves any act or practice which is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, he may issue a written order specifying in what respects such act or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, and requiring the discontinuance of such act or practice.
(4) No insurer which makes its own filings nor any rating organization shall support its filings by statistics or adopt rate making recommendations, furnished to it by an advisory organization which has not complied with this section or with an order of the commissioner involving such statistics or recommendations issued under subsection (3) of this section. If the commissioner finds such insurer or rating organization to be in violation of this subsection he may issue an order requiring the discontinuance of such violation.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2464 - Joint Underwriting or Reinsurance; Unfair Activities.

500.2464 Joint underwriting or reinsurance; unfair activities.
Sec. 2464.
(1) Every group, association or other organization of insurers which engages in joint underwriting or joint reinsurance, shall be subject to regulation with respect thereto as herein provided, subject, however, with respect to joint underwriting, to all other provisions of this chapter and, with respect to joint reinsurance, to sections 2468 (examination), 2478 (penalties), and 2482 (appeals).
(2) If, after a hearing, the commissioner finds that any activity or practice of any such group, association or other organization is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, he may issue a written order specifying in what respects such activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, and requiring the discontinuance of such activity or practice.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-24 - Chapter 24 Casualty Insurance Rates (500.2400...500.2484) › Section 500.2468 - Examination of Rating Organizations; Report.

500.2468 Examination of rating organizations; report.
Sec. 2468.
(1) The commissioner may make or cause to be made an examination of each rating organization licensed in this state under section 2436, each advisory organization referred to in section 2462, and of each group, association, or other organization referred to in section 2464. The reasonable costs of the examination shall be paid by the rating organization, advisory organization, or group, association, or other organization examined upon presentation to it of a detailed account of those costs. The officer, manager, agents, and employees of the rating organization, advisory organization, or group, association, or other organization may be examined at any time under oath and shall exhibit all books, records, accounts, documents, or agreements governing its method of operation. The examination is subject to the procedure provided for in section 222 relating to examinations of insurance companies.
(2) Instead of an examination under subsection (1), the commissioner may accept the report of an examination made by the insurance supervisory official of another state, pursuant to the laws of that state.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 2002, Act 37, Imd. Eff. Mar. 7, 2002
Popular Name:
Act 218