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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1318 - Violations.

500.1318 Violations.
Sec. 1318.
The following are violations of sections 1311 to 1319:
(a) Failure to file any statement, amendment or other material required to be filed pursuant to sections 1311 or 1312.
(b) The effectuation or any attempt to effectuate an acquisition of control of, or merger with, a domestic insurer unless the commissioner has given his approval.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1319 - Jurisdiction of Actions Arising Out of Violations; Consent to Process.

500.1319 Jurisdiction of actions arising out of violations; consent to process.
Sec. 1319.
The courts of this state have jurisdiction over every person not resident, domiciled, or authorized to do business in this state who files or fails to file a statement with the commissioner as required by this chapter and over all actions involving the person arising out of violations of sections 1311 to 1318. Each such person shall be considered to have performed acts equivalent to and constituting an appointment by him or her of the commissioner to be his or her true and lawful attorney upon whom may be served all lawful process in any action, suit, or proceeding arising out of violations of this section. Copies of all lawful process shall be served on the commissioner and transmitted by registered or certified mail by the commissioner to the person at his or her last known address.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1324 - Insurers Subject to Registration; Time.

500.1324 Insurers subject to registration; time.
Sec. 1324.
An insurer that is a member of an insurance holding company system and is authorized to do business in this state shall register with the commissioner. A foreign insurer is not required to register if it is subject to disclosure requirements and standards adopted by statute or regulation in the jurisdiction of its domicile that are substantially similar to those contained in this section and sections 1325 to 1343 and that exempt insurers domiciled in this state from the requirements of registration or that permit insurers domiciled in this state to satisfy the registration requirement by filing copies of materials required to be filed under this chapter. An insurer subject to registration under this chapter shall register by May 1 of each year for the immediately preceding calendar year unless the commissioner for good cause shown extends the time for registration. The commissioner may require an authorized insurer that is a member of a holding company system not subject to registration under this section to furnish a copy of the registration statement or other information filed by the insurer with the insurance regulatory authority of domiciliary jurisdiction.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1990, Act 85, Imd. Eff. May 29, 1990 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1325a - Annual Enterprise Risk Report.

500.1325a Annual enterprise risk report.
Sec. 1325a.
(1) Except as otherwise provided in subsection (2), the ultimate controlling person of an insurer subject to registration under section 1324 shall file an annual enterprise risk report with the director or a jurisdiction designated by the director. The report must be appropriate to the nature, scale, and complexity of the operations of the insurance holding company system and must, to the best of the ultimate controlling person's knowledge and belief, identify the material risks within the insurance holding company system that could pose enterprise risk to the insurer. The ultimate controlling person of an insurer subject to registration under section 1324 may request an exemption from this section. The ultimate controlling person of the insurer shall file with the director a written statement discussing the reasons why the ultimate controlling person of the insurer should be exempt. The director may grant the exemption if after review of the statement the director finds that compliance with this section would create an undue financial or organizational hardship on the ultimate controlling person.
(2) The ultimate controlling person of an insurance holding company system subject to registration under section 1324 that meets the requirements of this subsection before December 23, 2015 is not required to file an annual enterprise risk report under subsection (1) if all of the following requirements are met:
(a) The ultimate controlling person is exempt from taxation under section 501(c)(5) of the internal revenue code of 1986, 26 USC 501.
(b) The ultimate controlling person was organized under the laws of this state before January 1, 1921.
(c) The director has not approved the controlling person's petition for disclaimer of affiliation or has disallowed a disclaimer of affiliation under section 1332.
(d) The insurer in which the ultimate controlling person owns a controlling interest meets both of the following requirements:
(i) Is registered under section 1324.
(ii) Is a wholly domestic insurer with not more than 10% of its written premium covering risks outside of this state and has not issued policies directly insuring any risk located outside of this state.
History:
Add. 2015, Act 244, Imd. Eff. Dec. 22, 2015 ;-- Am. 2022, Act 260, Eff. Mar. 29, 2023
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1325c - Liquidity Stress Test Framework; Results; Filing; Compliance With Naic.

500.1325c Liquidity stress test framework; results; filing; compliance with NAIC.
Sec. 1325c.
(1) Except as otherwise provided in this section, the ultimate controlling person of every insurer that is subject to registration under section 1324 and that is scoped into the NAIC liquidity stress test framework for the specified data year shall file with the lead state commissioner the results of that year's liquidity stress test.
(2) A change to the NAIC liquidity stress test framework or to the data year for which the scope criteria are to be measured must be effective on January 1 of the year following the calendar year when the change is adopted by NAIC.
(3) An insurer that meets at least 1 threshold of the scope criteria is considered scoped into the NAIC liquidity stress test framework for the specified data year, unless the lead state commissioner, in consultation with the NAIC financial stability task force or its successor, determines that the insurer should not be scoped into the framework for the specified data year.
(4) An insurer that does not meet at least 1 threshold of the scope criteria is considered scoped out of the NAIC liquidity stress test framework for the specified data year, unless the lead state commissioner, in consultation with the NAIC financial stability task force or its successor, determines the insurer should be scoped into the NAIC liquidity stress test framework for the specified data year.
(5) As part of a determination made under subsection (3) or (4), the lead state commissioner, in consultation with the NAIC financial stability task force or its successor, shall consider that regulators wish to avoid having insurers scoped in and out of the NAIC liquidity stress test framework on a frequent basis.
(6) The performance of, and filing of the results from, a specified year's liquidity stress test must comply with the NAIC liquidity stress test framework's instructions and reporting templates for that year and any lead state commissioner determination, in conjunction with the NAIC financial stability task force or its successor, provided within the NAIC liquidity stress test framework.
History:
Add. 2022, Act 263, Eff. Mar. 29, 2023
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1326 - Registration Statement; Nonmaterial Information Not Disclosed.

500.1326 Registration statement; nonmaterial information not disclosed.
Sec. 1326.
(1) Information does not need to be disclosed on a registration statement filed under section 1325 if the information is not material for the purposes of sections 1324 to 1325a and 1327 to 1343.
(2) Unless the director by rule or order provides otherwise, a sale, purchase, exchange, loan, extension of credit, or investment involving 1/2 of 1% or less of an insurer's admitted assets on the preceding December 31 is not material for purposes of sections 1324 to 1325a and 1327 to 1343.
(3) A sale, purchase, exchange, loan, extension of credit, or investment involving 1/2 of 1% or less of an insurer's admitted assets on the preceding December 31 is not material for purposes of an annual group capital calculation under section 1325b or an NAIC liquidity stress test under section 1325c.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 2022, Act 259, Eff. Mar. 29, 2023
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1327 - Registration Statement; Reporting Material Changes or Additions and Distributions to Shareholders.

500.1327 Registration statement; reporting material changes or additions and distributions to shareholders.
Sec. 1327.
Each registered insurer shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions within 15 days after the end of the month in which it learns of each change or addition. Subject to section 1343, each registered insurer shall report all dividends and other distributions to shareholders within 2 business days following the declaration.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1328 - Registration; Termination.

500.1328 Registration; termination.
Sec. 1328.
The commissioner shall terminate the registration of any insurer which demonstrates that it no longer is a member of an insurance holding company system.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1329 - Consolidated Registration Statements.

500.1329 Consolidated registration statements.
Sec. 1329.
The commissioner may require or allow 2 or more affiliated insurers subject to registration to file a consolidated registration statement or consolidated reports amending their consolidated registration statement or their individual registration statements.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1330 - Registration on Behalf of Affiliated Insurer.

500.1330 Registration on behalf of affiliated insurer.
Sec. 1330.
The commissioner may allow an insurer authorized to do business in this state which is part of an insurance holding company system to register on behalf of any affiliated insurer which is required to register under section 1324 and to file all information and material required to be filed under this chapter.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1331 - Exemptions.

500.1331 Exemptions.
Sec. 1331.
The provisions of sections 1324 to 1333 shall not apply to any insurer, information or transaction if and to the extent that the commissioner by rule or order exempts the insurer.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1332 - Petition for Disclaimer of Affiliation; Filing; Contents; Effect; Disallowance.

500.1332 Petition for disclaimer of affiliation; filing; contents; effect; disallowance.
Sec. 1332.
Any person may file with the commissioner a petition for disclaimer of affiliation with an authorized insurer or an insurer or any member of an insurance holding company system may file such a petition for disclaimer. The petition for disclaimer shall fully disclose all material relationships and bases for affiliation between the person and the insurer as well as the basis for disclaiming the affiliation and shall be subject to approval by the commissioner. The burden of proof for establishing that an affiliation does not exist shall rest with the petitioner. After a petition for disclaimer is filed with and approved by the commissioner, the insurer is relieved of any duty to register or report under this chapter that may arise out of the insurer's relationship with the person unless the commissioner subsequently disallows the disclaimer. The commissioner may disallow a disclaimer that has been previously approved only after furnishing all parties in interest with notice and opportunity to be heard and after making specific findings of fact to support the disallowance.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1994, Act 227, Imd. Eff. June 27, 1994
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1333 - Registration Statement; Failure to File.

500.1333 Registration statement; failure to file.
Sec. 1333.
The failure to file a registration statement, an amendment to or summary of the registration statement, or an enterprise risk report required by sections 1324 to 1332 within the time specified for the filing is a violation of this chapter.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 2015, Act 244, Imd. Eff. Dec. 22, 2015
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1334 - Person Subject to Registration; Providing Information to Insurer.

500.1334 Person subject to registration; providing information to insurer.
Sec. 1334.
A person within an insurance holding company system subject to registration is required to provide complete and accurate information to an insurer if the information is reasonably necessary to enable the insurer to comply with the provisions of this chapter.
History:
Add. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1342 - Application of MCL 500.436a.

500.1342 Application of MCL 500.436a.
Sec. 1342.
In determining whether an insurer remains safe, reliable, and entitled to public confidence for the purposes of sections 1324 to 1343, the commissioner shall apply the standards of section 436a.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1344 - Officers and Directors; Obligation or Liability; Common Management or Cooperative or Joint Use of Personnel, Property, or Services.

500.1344 Officers and directors; obligation or liability; common management or cooperative or joint use of personnel, property, or services.
Sec. 1344.
(1) Notwithstanding the control of a domestic insurer by any person, the insurer's officers and directors shall not be relieved of any obligation or liability to which they would otherwise be subject by law and the insurer shall be managed so as to assure its separate operating identity consistent with this act.
(2) Nothing in this section shall preclude a domestic insurer from having or sharing a common management or cooperative or joint use of personnel, property, or services with 1 or more other persons under arrangements meeting the standards of this act.
History:
Add. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1351 - Examination of Insurer or Affiliates; Information; Experts; Expenses.

500.1351 Examination of insurer or affiliates; information; experts; expenses.
Sec. 1351.
(1) Subject to the limitation in this section and in addition to the powers that the director has under chapters 2 and 4 relating to the examination of insurers, the director may order an insurer registered under section 1324 to produce records, books, or other information papers in the possession of the insurer or its affiliates as are necessary to determine the insurer's financial condition, including enterprise risk to the insurer by the ultimate controlling party, or by combination of entities within the insurance holding company system, or by the insurance holding company system on a consolidated basis, or legality of conduct. If the insurer fails to comply with the order, the director may examine the affiliates to obtain the information. The director may order an insurer registered under section 1324 to produce information not in the possession of the insurer if the insurer can obtain access to the information under a contractual relationship, statutory obligation, or other method. If the insurer cannot obtain the information requested by the director, the insurer shall provide the director with a detailed explanation of the reason that the insurer cannot obtain the information and the identity of the holder of information. If the director determines the detailed explanation is without merit, the director may require, after notice and hearing, the insurer to pay a civil fine of $1,000.00 for each day's delay or may suspend or revoke the insurer's license.
(2) The director may retain at the registered insurer's expense attorneys, actuaries, accountants, and other experts not otherwise a part of the director's staff as are reasonably necessary to assist in the conduct of the examination under subsection (1). The expense of the attorneys, actuaries, accountants, and other experts shall be certified by the director and paid as provided in sections 216 and 224. The person retained is under the direction and control of the director and shall act in a purely advisory capacity.
(3) Each registered insurer producing for examination records, books, and papers under subsection (1) is liable for and shall pay the expense of the examination under sections 216 and 224.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992 ;-- Am. 2015, Act 244, Imd. Eff. Dec. 22, 2015
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1357 - Participation of Director in Supervisory College.

500.1357 Participation of director in supervisory college.
Sec. 1357.
(1) The director may participate in a supervisory college for a domestic insurer that is part of an insurance holding company system with international operations to determine the insurer's financial condition, business strategy, risk management, risk exposures, governance processes, regulatory position, or legality of conduct. The director may participate in a supervisory college with other regulators including state, federal, and international regulatory agencies, charged with the supervision of the insurer or its affiliates. The authority of the director under this section includes, but is not limited to, initiating a supervisory college, clarifying membership and participation of other supervisors in the supervisory college, clarifying the functions of the supervisory college and roles of other regulators including establishing a groupwide supervisor, coordinating ongoing activities of the supervisory college, and establishing a crisis management plan.
(2) The insurer is liable for and shall pay the reasonable expenses for the director to participate in the supervisory college, including reasonable travel expenses, if the director considers it appropriate to require the insurer to pay these costs.
(3) The director may enter into agreements under section 1355 providing the basis for cooperation and sharing of confidential information with state, federal, and international regulatory agencies that regulate the domestic insurer or affiliates within the insurance holding company system. This section does not delegate to the supervisory college the authority of the director to regulate or supervise the domestic insurer or its affiliates within its jurisdiction.
History:
Add. 2015, Act 245, Imd. Eff. Dec. 22, 2015
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1361 - Issuance of Rules and Orders.

500.1361 Issuance of rules and orders.
Sec. 1361.
Upon notice and opportunity for all interested persons to be heard, the commissioner may promulgate rules and issue orders as are necessary to carry out the provisions of this chapter.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992
Popular Name:
Act 218
Admin Rule:
R 500.701 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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1365 - Injunctions; Violation of Chapter, Rule or Order.

500.1365 Injunctions; violation of chapter, rule or order.
Sec. 1365.
When it appears to the commissioner that any insurer or any director, officer, employee or agent thereof has committed or is about to commit a violation of this chapter or of any rule or order issued by the commissioner, he may apply to the circuit court for the county in which the principal office of the insurer is located or if the insurer has no such office in this state then to the circuit court for Ingham county for an order enjoining the insurer or the director, officer, employee or agent thereof from violating or continuing to violate this chapter, rule or order and for such other equitable relief as the nature of the case and the interests of the insurer's policyholders, creditors and shareholders or the public may require.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1367 - Voting Certain Securities Prohibited; Injunction.

500.1367 Voting certain securities prohibited; injunction.
Sec. 1367.
A security that is the subject of any agreement or arrangement regarding acquisition, or that is acquired or to be acquired, in contravention of this chapter or of any rule or order issued by the commissioner, shall not be voted at any shareholders' meeting or counted for quorum purposes and any action of shareholders requiring the affirmative vote of a percentage of shares may be taken as though the securities were not issued and outstanding. An action taken at the meeting shall not be invalidated by the voting of the securities, unless the action would materially affect control of the insurer or unless so ordered by the court. If an insurer or the commissioner has reason to believe that any security of the insurer has been or is about to be acquired in contravention of this chapter or of any rule or order issued by the commissioner, the insurer or the commissioner may apply to the Ingham county circuit court or to the circuit court for the county in which the insurer has its principal place of business to enjoin any offer, request, invitation, agreement, or acquisition made in contravention of sections 1311 to 1319 or any rule or order issued by the commissioner to enjoin the voting of any security so acquired, to void any vote of the security already cast at any meeting of shareholders and for other equitable relief as the nature of the case and the interests of the insurer's policyholders, creditors, and shareholders or the public may require.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1368 - Voting Securities in Violation of Chapter; Sequestration of Securities.

500.1368 Voting securities in violation of chapter; sequestration of securities.
Sec. 1368.
When a person has acquired or is proposing to acquire any voting securities in violation of this chapter or any rule or order issued by the commissioner, the circuit court for Ingham county or the circuit court for the county in which the insurer has its principal place of business, on such notice as the court deems appropriate, upon the application of the insurer or the commissioner, may seize or sequester any voting securities of the insurer owned directly or indirectly by such person and issue such orders with respect thereto as may be appropriate. Notwithstanding any other provisions of law, for the purposes of this chapter the situs of the ownership of the securities of domestic insurers is deemed to be in this state.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1375 - Violation of Chapter; Receivership.

500.1375 Violation of chapter; receivership.
Sec. 1375.
If it appears to the commissioner that a person has committed a violation of this chapter that so impairs the financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors, shareholders, or the public, the commissioner may proceed as provided in chapter 81 to take possession of the property of the domestic insurer and conduct the insurer's business.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1377 - Liquidation or Rehabilitation; Recovery of Certain Distributions or Payments.

500.1377 Liquidation or rehabilitation; recovery of certain distributions or payments.
Sec. 1377.
(1) If an order for liquidation or rehabilitation of a domestic insurer has been entered, the receiver appointed under the order shall have a right to recover on behalf of the insurer both of the following:
(a) From any parent corporation, holding company, or person who otherwise controls the insurer, the amount of distributions, other than distributions of shares of the same class of stock, paid by the insurer on its capital stock if made at any time during the 3 years preceding the petition for liquidation, conservation, or rehabilitation.
(b) Any payment in the form of an extraordinary bonus, termination settlement, or lump sum salary adjustment made by the insurer or its subsidiary to a director, officer, or employee if made at any time during the 3 years preceding the petition for liquidation, conservation, or rehabilitation.
(2) A distribution or payment shall not be recoverable under this section if the parent or affiliate or the director, officer, or employee shows that when paid the distribution was lawful and reasonable and that the insurer did not know and could not reasonably have known that the distribution or payment might adversely affect the ability of the insurer to fulfill its contractual obligations. If payments were made to more than 1 director, officer, or employee, this subsection shall apply to the aggregate of those payments.
(3) A person who was a parent corporation, holding company, or a person who otherwise controlled the insurer or affiliate at the time the distribution was paid shall be liable up to the amount of distributions or payments under subsection (1) that the person received. A person who otherwise controlled the insurer at the time the distribution was declared shall be liable up to the amount of distributions he or she would have received if they had been paid immediately. If 2 or more persons are liable with respect to the same distribution, they are jointly and severally liable.
(4) The maximum amount recoverable under this section shall be the amount needed in excess of all other available assets of the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse any guaranty funds.
(5) To the extent that any person liable under subsection (3) is insolvent or otherwise fails to pay claims due from it pursuant to subsection (3), its parent corporation, holding company, or person who otherwise controlled it at the time the distribution was paid, is jointly and severally liable for any resulting deficiency in the amount recovered from that person.
History:
Add. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1378 - Failure by Commissioner to Act or Make Determination; Petition for Writ of Superintending Control.

500.1378 Failure by commissioner to act or make determination; petition for writ of superintending control.
Sec. 1378.
A person aggrieved by failure of the commissioner to act or make a determination required by this chapter may petition the Ingham county circuit court for a writ of superintending control.
History:
Add. 1992, Act 182, Imd. Eff. Oct. 1, 1992
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) › 218-1956-13 - Chapter 13 Holding Companies (500.1301...500.1379) › Section 500.1379 - Violation of Chapter; Suspension, Revocation or Refusal to Renew License.

500.1379 Violation of chapter; suspension, revocation or refusal to renew license.
Sec. 1379.
When it appears to the commissioner that any person has committed a violation of this chapter which makes the continued operation of an insurer contrary to the interests of policyholders or the public, the commissioner, after giving notice and an opportunity to be heard, may determine to suspend, revoke or refuse to renew the insurer's license or authority to do business in this state for such period as he finds is required for the protection of policyholders or the public. Any such determination shall be accompanied by specific findings of fact and conclusion of law.
History:
Add. 1970, Act 136, Imd. Eff. July 29, 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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1400 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1400 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section pertained to application of chapter as to agents, solicitors, adjustors, and counselors.
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1401 - Definitions.

500.1401 Definitions.
Sec. 1401.
As used in this chapter:
(a) "Actuary" means a person who is a member in good standing of the American academy of actuaries.
(b) "Managing general agent" or "MGA" means a person who is not listed under section 1403 and meets both of the following:
(i) Negotiates and binds ceding reinsurance contracts on behalf of an insurer or manages all or part of the insurance business of an insurer, including the management of a separate division, department, or underwriting office.
(ii) Acts as an agent for such insurer whether known as a managing general agent or other similar term, who, with or without the authority, either separately or together with affiliates, produces, directly or indirectly, and underwrites an amount of gross direct written premium of not less than 5% of the policyholder surplus as reported in the last annual statement of the insurer in any 1 quarter or year and adjusts or pays claims in excess of an amount determined by the commissioner or negotiates reinsurance on behalf of the insurer.
(c) "Guaranty association" means the property and casualty guaranty association created in chapter 79 and the life and health insurance guaranty association created in chapter 77.
(d) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
History:
Add. 1990, Act 350, Eff. June 1, 1991
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1402 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1402 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section pertained to definition of general, district, state, or special agent.
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1403 - Persons Not Considered Managing General Agents.

500.1403 Persons not considered managing general agents.
Sec. 1403.
For the purposes of the chapter, the following persons are not considered managing general agents:
(a) An employee of the insurer.
(b) A United States manager of the United States branch of an alien insurer.
(c) An underwriting manager who pursuant to contract manages all the insurer's insurance operations, is under common control with the insurer, is subject to chapter 13, and whose compensation is not based on the volume of premiums written.
(d) An attorney-in-fact for a reciprocal or inter-insurance exchange.
History:
Add. 1990, Act 350, Eff. June 1, 1991 ;-- Am. 1991, Act 57, Imd. Eff. June 27, 1991
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1404 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1404 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section pertained to resident agents, definition, and licenses.
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1405 - Licensing.

500.1405 Licensing.
Sec. 1405.
(1) A person shall not act in the capacity of a managing general agent with respect to risks located in this state for an insurer authorized in this state unless that person is licensed as an agent in this state.
(2) A person shall not act in the capacity of a managing general agent representing an insurer domiciled in this state with respect to risks located outside this state unless that person is licensed as an agent in this state pursuant to the provisions of this chapter.
History:
Add. 1990, Act 350, Eff. June 1, 1991
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1407 - Bond; Errors and Omissions Policy.

500.1407 Bond; errors and omissions policy.
Sec. 1407.
The commissioner may require a managing general agent to do both of the following:
(a) Maintain a bond in an amount acceptable to the commissioner for the protection of the insurer.
(b) Maintain an errors and omissions policy.
History:
Add. 1990, Act 350, Eff. June 1, 1991
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1408 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1408 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section pertained to definition of solicitor.
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1411 - Insurer; Duties.

500.1411 Insurer; duties.
Sec. 1411.
An insurer shall comply with all of the following:
(a) Have on file an independent financial examination, in a form acceptable to the commissioner, of each managing general agent with which it has done business.
(b) If a managing general agent establishes loss reserves for the insurer, annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent. This subdivision is in addition to any other required loss reserve certification.
(c) Periodically, and not less than semiannually, conduct an on-site review of the underwriting and claims processing operations of the managing general agent.
(d) Provide that binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates rests with an officer of the insurer who is not affiliated with the managing general agent.
(e) Within 30 days of entering into or terminating a contract with a managing general agent, provide written notification of the appointment or termination to the commissioner. Notices of appointment of a managing general agent shall include a statement of duties that the applicant is a licensed agent, is expected to perform on behalf of the insurer, the lines of insurance for which the applicant is to be authorized to act, and any other information the commissioner may request.
(f) Review each quarter its books and records to determine if an agent has become a managing general agent. If the insurer determines that an agent has become a managing general agent, the insurer shall promptly notify the agent and the commissioner of this determination and the insurer and agent shall fully comply with the provisions of this chapter within 30 days.
(g) Except as to relationships governed by chapter 13, shall not appoint to the board of directors an officer, director, employee, agent, or controlling shareholder of the insurer's managing general agents.
History:
Add. 1990, Act 350, Eff. June 1, 1991
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1412 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1412 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section pertained to license requirement and employment of insurance agent.
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1413 - Acts of Managing General Agent Deemed Acts of Insurer; Examination.

500.1413 Acts of managing general agent deemed acts of insurer; examination.
Sec. 1413.
The acts of the managing general agent are considered to be the acts of the insurer on whose behalf it is acting. A managing general agent may be examined as if it were the insurer.
History:
Add. 1990, Act 350, Eff. June 1, 1991
Compiler's Notes:
Former MCL 500.1413, which pertained to action by unlicensed agent, was repealed by Act 133 of 1972, Eff. Mar. 30, 1973.
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1414 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1414 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section pertained to license requirement of clerical help.
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1415 - Violation; Penalties; Judicial Review; Rights of Policyholders, Claimants, and Auditors.

500.1415 Violation; penalties; judicial review; rights of policyholders, claimants, and auditors.
Sec. 1415.
(1) If the commissioner finds after a hearing conducted in accordance with the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws, that any person has violated any provision of this chapter, the commissioner may order the following:
(a) For each separate violation, a civil fine in an amount that does not exceed $25,000.00.
(b) Revocation or suspension of the agent's license.
(c) Restitution by the managing general agent to reimburse the insurer, the rehabilitator, liquidator of the insurer, or the guaranty associations for any losses incurred by the insurer or the guaranty associations because of a violation of this chapter.
(2) The decision, determination, or order of the commissioner pursuant to subsection (1) shall be subject to judicial review pursuant to Act No. 306 of the Public Acts of 1969.
(3) Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided for in this act.
(4) Nothing contained in this chapter is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, and auditors.
History:
Add. 1990, Act 350, Eff. June 1, 1991
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1416 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1416 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section pertained to requisition of agent's license by insurer.
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1417 - Rules and Regulations.

500.1417 Rules and regulations.
Sec. 1417.
The commissioner may adopt reasonable rules and regulations for the implementation and administration of the provisions of this chapter.
History:
Add. 1990, Act 350, Eff. June 1, 1991
Compiler's Notes:
Former MCL 500.1417, which pertained to license, application, form, and examination fee, was repealed by Act 133 of 1972, Eff. Mar. 30, 1973.
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1419 - Effective Date of Chapter.

500.1419 Effective date of chapter.
Sec. 1419.
This chapter shall take effect on June 1, 1991. An insurer shall not use the services of a managing general agent on and after June 1, 1991, unless such use is in compliance with this chapter.
History:
Add. 1990, Act 350, Eff. June 1, 1991
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) › 218-1956-14 - Chapter 14 Managing General Agents (500.1400...500.1450) › Section 500.1420-500.1450 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1420-500.1450 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed sections pertained to agents and solicitors.
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) › 218-1956-14A - Chapter 14a Producer Controlled Insurers (500.1451...500.1474) › Section 500.1451 - “Producer” Defined.

500.1451 “Producer” defined.
Sec. 1451.
As used in this chapter, "producer" means an insurance agent or any other person, firm, association, or corporation, when, for any compensation, commission, or other thing of value, the person, firm, association, or corporation acts or aids in any manner in soliciting, negotiating, or procuring the making of an insurance contract on behalf of an insured other than the person, firm, association, or corporation.
History:
Add. 1994, Act 227, Imd. Eff. June 27, 1994
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) › 218-1956-14A - Chapter 14a Producer Controlled Insurers (500.1451...500.1474) › Section 500.1452 - Repealed. 1972, Act 133, Eff. Mar. 30, 1973.

500.1452 Repealed. 1972, Act 133, Eff. Mar. 30, 1973.
Compiler's Notes:
The repealed section, formerly compiled in Chapter 14 of this act, pertained to reward prohibited for procurement of business by unlicensed person.
Popular Name:
Act 218