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) › 218-1956-63 - Chapter 63 Anti-Fraud Unit (500.6301...500.6304) › Section 500.6303 - Annual Report to Legislature.

500.6303 Annual report to legislature.
Sec. 6303.
(1) Beginning July 1 of the year after the effective date of the amendatory act that added this section, the anti-fraud unit shall prepare and publish an annual report to the legislature on the anti-fraud unit's efforts to prevent automobile insurance fraud.
(2) The anti-fraud unit shall submit the annual report to the legislature required by this section to the standing committees of the senate and house of representatives with primary jurisdiction over insurance issues and the director.
History:
Add. 2019, Act 21, Imd. Eff. June 11, 2019
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) › 218-1956-63 - Chapter 63 Anti-Fraud Unit (500.6301...500.6304) › Section 500.6304 - Effect of Chapter; Limitation of Power.

500.6304 Effect of chapter; limitation of power.
Sec. 6304.
This chapter does not limit the power of the anti-fraud unit to conduct activities under Executive Order No. 2018-9 with respect to the financial services industry or markets.
History:
Add. 2019, Act 21, Imd. Eff. June 11, 2019
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6400 - Scope of Chapter.

500.6400 Scope of chapter.
Sec. 6400.
(1) This chapter applies only to domestic insurers transacting life, disability, or loss of position insurances, as defined in section 6406, on the cooperative or assessment plan.
(2) Corporations heretofore organized and/or doing business under the provisions of Act No. 339 of the Public Acts of 1937, as amended, shall hereafter be subject to the provisions of this chapter and shall hereafter be classified as insurers doing business under this chapter.
History:
1956, Act 218, Eff. Jan. 1, 1957
Compiler's Notes:
Act 339 of 1937, referred to in this section, amended Act 256 of 1917 which was repealed by Act 218 of 1956.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6402 - Domestic Cooperative Plan Insurers; Organization.

500.6402 Domestic cooperative plan insurers; organization.
Sec. 6402.
Subject to the requirements of chapter 50 (organization of domestic insurers) and 52 (corporate powers, procedures of domestic insurers), any number of persons, not less than 7, residents of this state, may incorporate for the purpose of carrying on upon the assessment or cooperative plan, the kind or kinds of insurance enumerated in any 1 or more subdivisions of section 6406.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6406 - Domestic Cooperative Plan Insurers; Authorized Kinds of Insurance.

500.6406 Domestic cooperative plan insurers; authorized kinds of insurance.
Sec. 6406.
The kinds of insurance which may be carried on by insurers incorporated under this chapter shall be as follows:
(1) To insure persons against bodily injury or death by accident or against disability on account of sickness or accident and also to grant specific hospital benefits and medical, surgical and sick-care benefits to persons and their families, subject to such limitations as the commissioner may prescribe with respect thereto; and to provide reimbursement of funeral expenses, not exceeding $200.00 to any person in conjunction therewith.
(2) To provide indemnity to conductors, engineers and motormen of steam and electric railways, and to persons engaged in other similar trades or occupations, for loss of position arising from discharge or suspension, which indemnity shall be payable in installments which do not exceed the average monthly wage of the member, and which, in the aggregate upon any 1 risk, shall not exceed 15% of the contingency reserve deposit provided in sections 6434 and 6446, and to provide indemnity for loss of position arising from retirement.
(3) To insure the lives of persons and to grant every insurance pertaining thereto. Such policies of life insurance may provide for total and permanent disability benefits and accidental death benefits.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6410 - Domestic Cooperative Plan Insurers; Qualifications for Certificate of Authority; Issuance of Policies.

500.6410 Domestic cooperative plan insurers; qualifications for certificate of authority; issuance of policies.
Sec. 6410.
No insurer shall commence business under this chapter until it shall have procured bona fide applications for insurance therein together with the first premium in cash from at least 300 eligible persons for each class of risk as defined in section 6406 which the insurer undertakes to write; nor until the secretary and treasurer shall have given good and sufficient bonds to the insurer to be held by the president of the insurer, for the faithful performance of their duties, which bonds shall each be in amount at least twice the amount of money liable to come into the hands of such officer at any 1 time, said bonds to be approved by the commissioner; nor until the commissioner, after receipt of satisfactory proof as to compliance with these and such other requirements as he shall deem essential, shall have issued a certificate of authority to such insurer, then, and not before, the insurer may issue its policies of insurance.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6412 - Domestic Cooperative Plan Insurers; Life Insurer; Qualifications to Write Annuity Contracts.

500.6412 Domestic cooperative plan insurers; life insurer; qualifications to write annuity contracts.
Sec. 6412.
No insurer subject to subdivision (3) of section 6406 (transaction of life insurance) shall write in Michigan any contract of annuity, or retain by virtue of supplemental agreement any proceeds of any policy or contract of insurance upon deposit with such insurer at interest or upon settlement option, until it shall have a contingency reserve deposit as defined and described in section 6434, in the amount of $100,000.00, and shall have obtained from the commissioner a certificate of authority to write such contracts of annuity or supplemental agreements.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6414 - Domestic Cooperative Plan Insurers; Qualifications to Write Group Insurance.

500.6414 Domestic cooperative plan insurers; qualifications to write group insurance.
Sec. 6414.
No such insurer shall do a business of group insurance in Michigan until it shall have accrued a contingency reserve deposit as defined and described in section 6434 in the amount of $100,000.00, and shall have obtained from the commissioner a certificate of authority to write group insurance.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6418 - Domestic Cooperative Plan Insurers; Directors; Selection at Annual Meetings; First Annual Meeting.

500.6418 Domestic cooperative plan insurers; directors; selection at annual meetings; first annual meeting.
Sec. 6418.
(1) The property, business and affairs of such insurer, shall be managed by not less than 5 nor more than 20 directors to be chosen by the members at the annual meeting of members, to serve until the next annual meeting and until their successors be qualified. The directors may be divided into 3 groups as nearly equal as possible and in such case only 1 group shall be elected at each annual meeting in a manner to be prescribed by the bylaws.
(2) The first annual meeting of members shall take place within 12 months following the date of execution of the articles of incorporation. During the interim between the execution of the articles of incorporation and the first annual meeting of members, the affairs of the insurer may be administered by such directors, officers or trustees as shall be vested with such interim authority by the terms of the articles of incorporation.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6422 - Domestic Cooperative Plan Insurers; Members; Voting; Quorum; Inspection of Books.

500.6422 Domestic cooperative plan insurers; members; voting; quorum; inspection of books.
Sec. 6422.
Every person insured in any insurer organized under this chapter shall be a member of such insurer, and shall be entitled to 1 vote at all meetings of the members, and may vote in person or by proxy under such rules and regulations as may be provided in the bylaws of such insurer: Provided, however, That a minimum of 10 members shall be present in person to constitute a quorum. The books of such insurer shall be open for inspection by any member of such insurer at any of its meetings.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6428 - Insurer Transacting Business Under MCL 500.6406 Subject to Certain Provisions.

500.6428 Insurer transacting business under MCL 500.6406 subject to certain provisions.
Sec. 6428.
(1) An insurer transacting business under section 6406(1) is subject to section 2260 and chapter 34.
(2) An insurer transacting business under section 6406(2) is subject to section 6616, and all policies must grant the nonforfeiture values under annuity contracts that are required of life insurers under this act.
(3) An insurer transacting business under section 6406(3) is subject to chapters 40 and 42.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 2016, Act 276, Imd. Eff. July 1, 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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6432 - Domestic Cooperative Plan Insurers; Reserves; Standards Applicable.

500.6432 Domestic cooperative plan insurers; reserves; standards applicable.
Sec. 6432.
(1) Every insurer transacting the kind or kinds of insurance described in subdivisions (1) and (2) of section 6406 (disability and loss of position insurances) shall maintain reserves for unearned premiums in accordance with the standards prescribed from time to time by the commissioner, which standards shall conform to those required of other insurers authorized to insure similar risks under the provisions of this code.
(2) Every insurer transacting the business of life insurance, endowment and/or annuity on or after January 1, 1948, shall maintain the reserves required by section 834 (standard valuation law); for all contracts issued between January 1, 1940, and December 31, 1947, inclusive, reserves not less than that determined by the national fraternal congress table of mortality as adopted by the national fraternal congress, August 23, 1899, with interest assumption not more than 4% per annum, or such other reserve as shall be provided by the certificate or contract of insurance, whichever may be the greater; and for all contracts issued prior to January 1, 1940, premiums shall be segregated as a separate fund or funds to be held in trust solely for the benefit of such contract, for which fund a separate accounting shall be made, unless or until the insurer shall be able to and shall elect to transfer said contracts or policies, with the reserves herein required, into 1 of the preceding 2 classes.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6434 - Contingency Reserve; Deposit.

500.6434 Contingency reserve; deposit.
Sec. 6434.
Every domestic insurer subject to this chapter shall maintain a contingency reserve at all times at least equal to 1/10 of the total premium income for the preceding calendar year but not less than $5,000.00 for each kind of insurance enumerated in section 6406 which the insurer undertakes to issue and shall maintain a deposit with the state treasurer, of the kind and amount and for the purposes specified in section 411.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1972, Act 360, Imd. Eff. Jan. 9, 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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6436 - Domestic Cooperative Plan Insurers; Unlawful Use of Reserve Funds; Penalty.

500.6436 Domestic cooperative plan insurers; unlawful use of reserve funds; penalty.
Sec. 6436.
(1) It shall be unlawful for any officer or agent of a cooperative mutual life insurance company doing business in this state to appropriate or use any portion of the reserve or mortality funds of such company for any other purpose than such as the articles of incorporation, bylaws and contracts with members prescribe.
(2) Any officer or agent guilty of any intentional violation of this section, or who shall aid or abet others in any such violation, shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punished by a fine not exceeding $1,000.00, or by imprisonment not exceeding 6 months, or by both such fine and imprisonment, in the discretion of the court.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6440 - Domestic Cooperative Plan Insurers; Assessment of Members; Nonassessable Policies.

500.6440 Domestic cooperative plan insurers; assessment of members; nonassessable policies.
Sec. 6440.
On and after January 1, 1948, every policy issued or delivered in this state by any domestic insurer subject to this chapter, shall set forth on the first page thereof, in addition to the regular specified premiums, the fact that the member is liable to be assessed to the extent needed to pay said member's aliquot share of claims and expenses, and to maintain the reserves required by this chapter. No such assessment shall be levied against any policyholder except upon due notice to such policyholder. Every policyholder shall be entitled to elect that his or her policy reserves, or the required portion thereof, shall be applied against such assessment. If any member shall fail to pay such assessment in cash within 30 days after notice, said assessment shall become a lien upon his or her policy or policies. Whenever the amount of liens upon any policy shall equal its reserve, the policy shall become void without further action and no further liability shall attach to the insurer. No assessment shall be made until the method of determining and spreading the assessment shall have been approved by the commissioner. The commissioner may authorize the prosecution of suits to collect assessments when he shall deem such action equitable and practicable: Provided, That any insurer issuing the kinds of insurance in subdivisions (1) (disability) and/or (2) (loss of position) of section 6406 may issue a nonassessable policy, which may be so described on the face of the policy, while it has contingency reserves in the amount of at least $200,000.00, and in no event shall the holder of any such policy, or any renewal thereof, be liable for a greater amount than the premiums expressed in the policy: Provided further, That no such nonassessable policy shall be issued until the commissioner shall, after examination of the insurer, determine that the insurer has contingency reserves of at least $200,000.00, and authorizes the insurer, in writing, to issue such nonassessable policies.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6446 - Domestic Cooperative Plan Insurers; Limits of Risk; Increased Reserve; Reinsurance.

500.6446 Domestic cooperative plan insurers; limits of risk; increased reserve; reinsurance.
Sec. 6446.
No such insurer shall expose itself to loss from all causes, on any 1 risk, in a total principal sum exceeding 10% of its contingency reserve deposit as defined in section 6434: Provided, That insurers may establish, make and maintain a larger contingency reserve deposit than is required by said section 6434, and thereafter the limits of exposure as herein defined shall be increased by 10% of any such excess deposit: Provided further, That insurers transacting business under this chapter may issue policies under which the amount insured exceeds the foregoing limitations, if the said insurers shall, at the time of issuance of said policy or policies, have in force, and shall maintain in force throughout the continuance of such policies, a good and enforceable contract or contracts of reinsurance ceding of said individual risks not less than the excess over the permissible retention as herein provided, which reinsurance shall be ceded only to insurers authorized under the provisions of this code to transact business of a similar class in this state, and to accept reinsurance: Provided, however, That no reinsurance shall be ceded to or accepted by any insurer operating under the cooperative or assessment plan: Provided further, That this section shall not reduce the limits of exposure to loss for insurers legally operating in this state under the cooperative or assessment plan on January 1, 1947.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6450 - Guaranty Fund; Agreement; Terms; Repayment; Other Borrowed Money.

500.6450 Guaranty fund; agreement; terms; repayment; other borrowed money.
Sec. 6450.
Any insurer may secure its required funds for reserve purposes by means of contributions or loans, but subject to the limitations set forth in this section. Any fund so secured is hereinafter described as a guaranty fund. The agreement upon which a guaranty fund is secured shall provide that any claim for its return is inferior and subordinate to all claims of and reserves for policyholders and insured members and to the statutory required contingency reserve deposit and is subject to the approval of the commissioner. The guaranty fund and agreed interest on the guaranty fund accrued in a manner and at a rate approved by the commissioner shall not be liabilities or claims against the insurer or any of its assets except as provided in this section. Interest shall be paid and principal shall be retired only out of surplus of the insurer in excess of current obligations and of reserves required by this chapter. No part of principal shall be retired or interest paid unless the surplus remaining after repayment is determined adequate to comply with section 403 and the insurer has received the written consent of the commissioner. No commission or promotion expense of any kind shall be paid or allowed in connection with the raising of the guaranty fund, and the amount of the guaranty fund together with interest on the fund and any portion of the fund retired during any year shall be reported in the insurer's annual statement. This section does not bar any insurer subject to this section from borrowing money, but the amount borrowed with accrued interest shall be carried by the insurer as an immediate liability, as distinguished from the deferred or contingent liability status of the guaranty fund.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1994, Act 226, 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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6456 - Domestic Cooperative Plan Insurers; Conversion Into Mutual Insurer; Procedure.

500.6456 Domestic cooperative plan insurers; conversion into mutual insurer; procedure.
Sec. 6456.
(1) Any insurer transacting business under subdivisions (1) (disability) or (3) (life) of section 6406, or under both such subdivisions, may, at its option, convert itself without reincorporation into a mutual insurance company transacting the corresponding kind or kinds of business, and become subject to the provisions of sections 5408 through 5430 (provisions applicable to domestic mutual life and disability insurers) and the applicable portions of sections 408 (capital, surplus, assets required) and 412 (deposit requirement), upon meeting the surplus and other requirements of said sections. Any insurer transacting only the kinds of business specified in subdivisions (1) (disability) and/or (2) (loss of position) of section 6406, may, at its option, convert itself without reincorporation into a mutual company and continue to transact the said kind or kinds of business, and become subject in all other respects to the provisions of chapter 58 (domestic general mutual insurers) upon meeting the requirements of said chapter.
(2) The board of directors, trustees, or managers, shall adopt, in the manner provided by law, such amendments to the articles of incorporation and the bylaws of the insurer as shall be necessary to make the same conform to the articles of incorporation and bylaws of a mutual insurance company, as above limited. Upon approval by the commissioner of such amendments, and the filing of a certified copy of the amendments to the articles of incorporation with the county clerk of the county in which the principal office of the insurer is located, such insurer shall be subject to the provisions and entitled to the benefits of the sections or chapter above designated, as the case may be.
(3) Such conversion into a mutual insurance company shall not affect the rights or obligations of the insurer or its members on any contract theretofore made.
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) › 218-1956-64 - Chapter 64 Cooperative Plan Insurers (Domestic) (500.6400...500.6460) › Section 500.6460 - New Insurers Organized After December 31, 1993.

500.6460 New insurers organized after December 31, 1993.
Sec. 6460.
No new insurer shall be organized under this chapter after December 31, 1993.
History:
Add. 1994, Act 226, 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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6500 - Applicability of Chapter.

500.6500 Applicability of chapter.
Sec. 6500.
This chapter applies only to pools formed to transact liability insurance as defined in section 6506, on the cooperative or assessment plan.
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6502 - Formation of Limited Liability Pool; Purpose.

500.6502 Formation of limited liability pool; purpose.
Sec. 6502.
Subject to the requirements of chapters 50 and 52, any number of persons, not less than 7, who are residents of this state, may form a limited liability pool for the purpose of carrying on upon the assessment or cooperative plan, liability insurance as provided in section 6506.
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6506 - Powers of Limited Liability Pool; Limitation.

500.6506 Powers of limited liability pool; limitation.
Sec. 6506.
The powers of a limited liability pool formed pursuant to this chapter shall be limited to the issuance of liability insurance policies for commercial, or other industrial, professional, or business liabilities as designated by the commissioner pursuant to this section. If, after holding a public hearing, the commissioner determines that liability insurance for a business or class of businesses, including, but not limited to, 4-year institutions of higher learning, child day care centers, nonprofit organizations, or a profession or class of professions is not readily available or is not available at a reasonable premium, the commissioner shall designate that business or class of businesses or profession or class of professions as eligible to be issued liability insurance policies by a limited liability pool formed pursuant to this chapter.
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6510 - Commencement of Business; Pool Not Subject to MCL 500.410.

500.6510 Commencement of business; pool not subject to MCL 500.410.
Sec. 6510.
(1) A limited liability pool shall not commence business under this chapter until all of the following are met:
(a) The pool has procured bona fide applications for insurance together with the first premium in cash from at least 50 eligible persons for the business or class of businesses or profession or class of professions as defined in section 6506 which the pool undertakes to write.
(b) The secretary and treasurer have given good and sufficient bonds, approved by the commissioner, to the pool to be held by the president of the pool, for the faithful performance of their duties, which bonds shall each be in an amount at least twice the amount of money liable to come into the hands of such officer at any 1 time.
(c) The pool has accrued a contingency reserve deposit as defined and described in section 6534.
(d) The pool has met the insurer requirements provided in section 411.
(e) The commissioner, after receipt of satisfactory proof as to compliance with these and such other requirements as he or she considers essential, has issued a certificate of authority to the pool.
(2) A limited liability pool formed under this chapter shall not be subject to the requirement provided in section 410.
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6512 - Limited Liability Pool; Formation; Purpose.

500.6512 Limited liability pool; formation; purpose.
Sec. 6512.
The commissioner shall require a limited liability pool formed under this chapter to certify annually the loss reserves of the pool by an actuary approved by the commissioner.
History:
Add. 1990, Act 350, Imd. Eff. Dec. 26, 1990
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6514 - Limited Liability Pool; Rates.

500.6514 Limited liability pool; rates.
Sec. 6514.
The rates charged by a limited liability pool formed under this chapter shall be filed in accordance with section 2408 and shall be subject to the prior approval of the commissioner.
History:
Add. 1990, Act 350, Imd. Eff. Dec. 26, 1990
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6516 - Limited Liability Pool; Underwriting Rules.

500.6516 Limited liability pool; underwriting rules.
Sec. 6516.
(1) A limited liability pool formed under this chapter shall put in writing all underwriting rules used by the insurer and shall file its underwriting rules with the commissioner prior to their use in this state.
(2) As used in this section, "underwriting rules" means the written statements, guidelines, or criteria of a limited liability pool, that describe the standards under which the limited liability pool issues, refuses to issue, renews, refuses to renew, or limits coverage for liability insurance under this chapter.
History:
Add. 1990, Act 350, Imd. Eff. Dec. 26, 1990
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6517 - Limited Liability Pool; Reinsurance.

500.6517 Limited liability pool; reinsurance.
Sec. 6517.
A limited liability pool formed under this chapter may reinsure all or any portion of its potential liability with reinsurers licensed to transact insurance in this state or approved by the commissioner. A limited liability pool shall not directly or indirectly reinsure all or any portion of its potential liability with an insurer not authorized to transact insurance in this state without approval by the commissioner.
History:
Add. 1990, Act 350, Imd. Eff. Dec. 26, 1990
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6518 - Management of Property, Business, and Affairs of Pool by Directors; Selection and Term of Directors; First Annual Meeting; Interim Authority.

500.6518 Management of property, business, and affairs of pool by directors; selection and term of directors; first annual meeting; interim authority.
Sec. 6518.
(1) The property, business, and affairs of a pool authorized under this chapter shall be managed by not less than 5 nor more than 20 directors to be chosen by the members at the annual meeting of members, to serve until the next annual meeting and until their successors be qualified.
(2) The first annual meeting of members shall take place within 12 months following the date of execution of the articles of incorporation. During the interim between the execution of the articles of incorporation and the first annual meeting of members, the affairs of the pool may be administered by such directors, officers, or trustees as shall be vested with such interim authority by the terms of the articles of incorporation.
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6522 - Insured Person as Member of Pool; Voting Rights; Quorum; Inspection of Books.

500.6522 Insured person as member of pool; voting rights; quorum; inspection of books.
Sec. 6522.
Every person insured in any pool formed under this chapter shall be a member of the pool, and shall be entitled to 1 vote at all meetings of the members, and may vote in person or by proxy under such rules and regulations as may be provided in the bylaws of the pool. A minimum of 10 members shall be present in person to constitute a quorum. The books of the pool shall be open for inspection by any member of the insurer at any of its meetings.
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6532 - Reserves for Unearned Premiums.

500.6532 Reserves for unearned premiums.
Sec. 6532.
Every pool transacting insurance under this chapter shall maintain reserves for unearned premiums in accordance with the standards prescribed from time to time by the commissioner, which standards shall conform to those required of other insurers authorized to insure similar risks under the provisions of this code.
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6534 - Contingency Reserve; Deposit With State Treasurer; Use of Deposit.

500.6534 Contingency reserve; deposit with state treasurer; use of deposit.
Sec. 6534.
Every pool subject to this chapter shall maintain a contingency reserve at all times at least equal to 2/7 of the total premium income for the preceding calendar year but not less than $300,000.00 and shall maintain a deposit with the state treasurer of the kind and amount and for the purposes specified in section 411. The deposit with the state treasurer may be used by the pool for purposes of calculating the contingency reserve. This contingency reserve shall be in addition to the ordinary reserves maintained for unpaid losses and loss adjustment expenses, including those claims which have been incurred but not reported and the reserve required under section 6532.
History:
Add. 1986, Act 173, Imd. Eff. July 7, 1986 ;-- Am. 1990, Act 350, Imd. Eff. Dec. 26, 1990
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6540 - Assessment of Member.

500.6540 Assessment of member.
Sec. 6540.
Every policy issued or delivered in this state by any pool subject to this chapter shall set forth on the first page thereof, in addition to the regular specified premiums, the fact that the member is liable to be assessed to the extent needed to pay that member's proportional share of claims and expenses, and to maintain the reserves required by this chapter. However, in no event shall a member be liable for an assessment under this section which is greater than the annual premium expressed in the policy. An assessment shall not be levied against any member except upon due notice to the member. If any member shall fail to pay the assessment in cash within 30 days after notice, the assessment shall become a lien upon his or her policy. Whenever an assessment becomes a lien upon a policy, the policy shall become void without further action and no further liability shall attach to the pool. An assessment shall not be made until the method of determining and spreading the assessment has been approved by the commissioner. The commissioner may authorize the prosecution of suits to collect assessments when he or she deems that action equitable and practicable.
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) › 218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550) › Section 500.6550 - Loans.

500.6550 Loans.
Sec. 6550.
Any pool organized under this chapter may secure its required funds for the deposit required under section 411, contingency reserve and other reserve purposes, and to defray the reasonable expenses of its organization by means of loans, upon an agreement that has first been submitted to and approved by the commissioner, that the funds shall be repaid with interest accrued in a manner and at a rate approved by the commissioner. The agreement under which the funds are obtained shall provide that any claim for their return shall be inferior and subordinate to all claims of and reserves for policyholders and creditors and shall not be liabilities or claims against the pool or any of its assets except as provided in this section. Interest shall be paid and principal shall be retired only out of surplus of the pool in excess of current obligations and of reserves required by this chapter. No part of principal shall be retired or interest paid unless the surplus remaining after repayment is determined adequate to comply with section 403 and the pool has received the written consent of the commissioner. The amount of funds obtained pursuant to this section and any portion retired during any year shall be reported in the pool's annual statement.
History:
Add. 1986, Act 173, Imd. Eff. July 7, 1986 ;-- Am. 1994, Act 226, 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) › 218-1956-66 - Chapter 66 Railway Employees, and Life, Disability Insurers (Domestic, Stock) (500.6600...500.6616) › Section 500.6600 - Scope of Chapter.

500.6600 Scope of chapter.
Sec. 6600.
This chapter applies only to domestic stock insurers formed for the purpose of transacting insurance as provided in section 6604.
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) › 218-1956-66 - Chapter 66 Railway Employees, and Life, Disability Insurers (Domestic, Stock) (500.6600...500.6616) › Section 500.6604 - Railway Employees' Loss of Position; Accident or Disability; Health and Life Insurance; Annuities.

500.6604 Railway employees' loss of position; accident or disability; health and life insurance; annuities.
Sec. 6604.
Any number of persons, not less than 13, may associate together and form an incorporated company for the following purposes, to wit:
First, To insure railway employees against loss of position resulting from discharge, suspension or retirement;
Second, To insure any person against bodily injury or death by accident, or against disability on account of sickness;
Third, To insure the lives and health of persons and every insurance pertaining thereto, and to grant, purchase or dispose of annuities.
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) › 218-1956-66 - Chapter 66 Railway Employees, and Life, Disability Insurers (Domestic, Stock) (500.6600...500.6616) › Section 500.6608 - Capital Stock Issuance Limitations; Par Value.

500.6608 Capital stock issuance limitations; par value.
Sec. 6608.
The amount of capital stock of any company organized under the provisions of this chapter shall not be less than $200,000.00, in shares of the par value of $50.00 each.
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) › 218-1956-66 - Chapter 66 Railway Employees, and Life, Disability Insurers (Domestic, Stock) (500.6600...500.6616) › Section 500.6612 - Applicability of Chapter.

500.6612 Applicability of chapter.
Sec. 6612.
Such provisions of this code as are applicable to domestic stock insurers transacting life, disability, or casualty insurances as are not inconsistent with, or in conflict with provisions of this chapter are hereby made applicable to the operation of any insurer organized under the provisions of this chapter.
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) › 218-1956-66 - Chapter 66 Railway Employees, and Life, Disability Insurers (Domestic, Stock) (500.6600...500.6616) › Section 500.6616 - Railway Employees' Loss of Position Insurance; Limit of Liability; Application.

500.6616 Railway employees' loss of position insurance; limit of liability; application.
Sec. 6616.
(1) All contracts insuring railway employees against loss of position or of wages resulting from discharge, suspension or retirement shall contain a provision, in form approved by the commissioner, limiting the liability under said contract to an amount not greater than the average monthly wages earned at the effective date of the policy contract, and in the event that more than 1 contract shall be in force, to its pro rata share of said loss. No insurer shall solicit, by advertising or otherwise, where the risk to be insured against is covered by a prior policy in force with another insurer, the writing of a contract wherein the insured shall recover under its contract any more than the pro rata share of the loss as herein provided.
(2) All contracts providing for such insurance shall be written only after a written application therefor shall be signed by the applicant wherein he shall be required to state whether he has similar coverage with another company and the amount of his average monthly wages.
(3) The provisions of this section shall be applicable to all insurers organized under or admitted to do business within the state of Michigan under the provisions of Act No. 256 of the Public Acts of 1917, as amended, or under the provisions of this code: Provided, That contracts of insurance, in force as of July 30, 1943, shall not be altered, amended or affected in any way by reason of the provisions of this section.
History:
1956, Act 218, Eff. Jan. 1, 1957
Compiler's Notes:
Act 256 of 1917, referred to in this section, was repealed by Act 218 of 1956 .
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) › 218-1956-68 - Chapter 68 Farmers' and Other Special Mutual Property Insurers (Domestic) (500.6800...500.6886) › Section 500.6800 - Scope of Chapter; Code Applicability to Domestic Farmers' Mutual Insurers.

500.6800 Scope of chapter; code applicability to domestic farmers' mutual insurers.
Sec. 6800.
(1) This chapter applies only to domestic farmers' mutual insurers and to the other domestic mutual insurers organized and transacting insurance upon property under this chapter.
(2) No provision or provisions of this insurance code not contained in or referred to in this chapter shall be applicable as to any such insurer.
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) › 218-1956-68 - Chapter 68 Farmers' and Other Special Mutual Property Insurers (Domestic) (500.6800...500.6886) › Section 500.6802 - Formation of Mutual Plan Insurers.

500.6802 Formation of mutual plan insurers.
Sec. 6802.
Companies may be incorporated upon the mutual plan to insure against loss and damage by fire, lightning, cyclones, windstorms, tornadoes, hail, riot, riot attending a strike, aircraft, smoke, vehicles and death of livestock from any cause, by complying with the provisions of this chapter as provided in the succeeding sections.
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) › 218-1956-68 - Chapter 68 Farmers' and Other Special Mutual Property Insurers (Domestic) (500.6800...500.6886) › Section 500.6804 - Farmers' Mutuals; Organization; Insuring Powers.

500.6804 Farmers' mutuals; organization; insuring powers.
Sec. 6804.
Any number of persons not less than 25 may associate together for the purpose of mutual insurance of the property of its members against loss or damage by inherent explosion, fire, lightning, riot, riot attending a strike, aircraft, smoke or vehicles, which property to be insured by companies organized or operating under this section shall embrace only farm property or property located in a village or city of less than 5,500 inhabitants used by a farmer exclusively for his own storage purposes, which property is not associated in any way with any retail, wholesale or processing operation, country churches, schoolhouses, lodge halls and town halls and their contents, in any township; and churches, schoolhouses and dwellings and accompanying outbuildings and their contents situated within the corporate limits of cities or villages having a population not in excess of 5,500 inhabitants; and any buildings and contents, located on county agricultural fairgrounds, used for fair purposes or for boys and girls club work: Provided, That such property has adequate fire protection.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1957, Act 168, Eff. Sept. 27, 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) › 218-1956-68 - Chapter 68 Farmers' and Other Special Mutual Property Insurers (Domestic) (500.6800...500.6886) › Section 500.6806 - Company Organized or Operating Under MCL 500.6804; Limit of Risk.

500.6806 Company organized or operating under MCL 500.6804; limit of risk.
Sec. 6806.
No company organized or operating under section 6804 shall carry an insurance or assume a liability on any single hazard in excess of the amount set forth in section 640.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1994, Act 226, Imd. Eff. June 27, 1994
Popular Name:
Act 218