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) › 218-1956-10 - Chapter 10 Annual Audited Financial Reports (500.1001...500.1033) › Section 500.1021 - Work Papers; Availability; Retention; Review as Investigation; Use.

500.1021 Work papers; availability; retention; review as investigation; use.
Sec. 1021.
(1) Work papers are the records kept by the independent public accountant of the procedures followed, tests performed, information obtained, and conclusions reached pertinent to his or her examination of the insurer's financial statements. Work papers may include audit planning documentation, work programs, analyses, memoranda, letters of confirmation and representation, abstracts of company documents, and schedules or commentaries prepared or obtained by the independent public accountant in the course of his or her examination of the insurer's financial statements and that support his or her opinion.
(2) Each insurer required to file an audited financial report pursuant to this chapter shall require the independent public accountant to make available for review by the commissioner the work papers prepared in the conduct of his or her examination and any communications between the independent public accountant and the insurer related to the audit at the commissioner's offices or at any other reasonable place designated by the commissioner. The insurer shall require that the independent public accountant retain the audit work papers and communications for a period of not less than 5 years after the period reported on.
(3) In a review by the commissioner under subsection (2), it shall be agreed that photocopies of pertinent audit work papers may be made and retained by the commissioner. A review by the commissioner under subsection (2) shall be considered an investigation and all working papers and communications obtained during the course of the investigation shall be confidential.
(4) In the examination or other investigation or determination of the financial condition of an insurer pursuant to this act, the commissioner shall utilize the audit work papers and other documents prepared by the independent public accountant and shall avoid duplication of the work of the independent public accountant unless the commissioner in the reasonable exercise of his or her discretion finds that additional examination is necessary in order to determine whether an insurer is safe, reliable, and entitled to public confidence.
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) › 218-1956-10 - Chapter 10 Annual Audited Financial Reports (500.1001...500.1033) › Section 500.1023 - Compliance With Chapter; Exemption; Filing Reports on Other Than Calendar Year Basis; Compliance by Domestic Insurers; Schedule; Compliance by Foreign Insurers.

500.1023 Compliance with chapter; exemption; filing reports on other than calendar year basis; compliance by domestic insurers; schedule; compliance by foreign insurers.
Sec. 1023.
(1) Upon an insurer's written application, the commissioner may grant an exemption from compliance with this chapter if the commissioner finds, upon review of the application, that compliance with this chapter would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specified period or periods. Within 10 days from a denial of an insurer's written request for an exemption from this chapter, the insurer may request in writing a hearing on its application for an exemption. The hearing shall be held 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.
(2) Upon an insurer's written application, the commissioner, for a specified period or periods, may permit an insurer to file annual audited financial reports on some basis other than a calendar year basis. Within 10 days from a denial of such a written request, the insurer may request in writing a hearing on its application. The hearing shall be held in accordance with Act No. 306 of the Public Acts of 1969.
(3) Domestic insurers retaining a certified public accountant on the effective date of this chapter who qualifies as independent shall comply with this chapter for the year ending December 31, 1992 and each year thereafter unless the commissioner permits otherwise.
(4) Domestic insurers not retaining a certified public accountant on the effective date of this chapter who qualifies as independent shall meet the following schedule for compliance unless the commissioner permits otherwise:
(a) As of December 31, 1992, file with the commissioner all of the following:
(i) Report of independent public accountant.
(ii) Audited balance sheet.
(iii) Notes to audited balance sheet.
(b) For the year ending December 31, 1993 and each year thereafter, file with the commissioner all reports required by this chapter.
(5) Foreign insurers shall comply with this chapter for the year ending December 31, 1993 and each year thereafter, unless the commissioner permits otherwise.
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) › 218-1956-10 - Chapter 10 Annual Audited Financial Reports (500.1001...500.1033) › Section 500.1025 - Canadian and British Insurers; Annual Audited Financial Report; Contents of Independent Public Accountant's Letter.

500.1025 Canadian and British insurers; annual audited financial report; contents of independent public accountant's letter.
Sec. 1025.
(1) For Canadian and British insurers, the annual audited financial report is the annual statement of total business, on the form filed by those companies with their domiciliary supervision authority, and duly audited by an independent chartered accountant.
(2) For insurers listed in subsection (1), the independent public accountant's letter required in section 1009 shall state that the independent public accountant is aware of the requirements relating to the annual audited statement filed with the commissioner pursuant to section 1005 and shall affirm that the opinion expressed is in conformity with those requirements.
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) › 218-1956-10 - Chapter 10 Annual Audited Financial Reports (500.1001...500.1033) › Section 500.1029 - Director or Officer of Insurer; Prohibited Conduct.

500.1029 Director or officer of insurer; prohibited conduct.
Sec. 1029.
(1) A director or officer of an insurer shall not directly or indirectly do either of the following:
(a) Make or cause to be made a materially false or misleading statement to an accountant in connection with any audit, review, or communication required under this chapter.
(b) Omit to state, or cause another person to omit to state, any material fact necessary in order to make statements made, in light of the circumstances under which the statements were made, not misleading to an accountant in connection with any audit, review, or communication required under this chapter.
(2) A director or officer of an insurer, or any other person acting under the direction thereof, shall not directly or indirectly take any action to coerce, manipulate, mislead, or fraudulently influence any accountant engaged in the performance of an audit under this chapter if that person knew or should have known that the action, if successful, could result in rendering the insurer's financial statements materially misleading. Actions that, if successful, could result in rendering the insurer's financial statements materially misleading include, but are not limited to, actions taken at any time with respect to the professional engagement period to coerce, manipulate, mislead, or fraudulently influence an accountant to do any of the following:
(a) To issue or reissue a report on an insurer's financial statements that is not warranted under the circumstances due to material violations of statutory accounting principles prescribed by the commissioner, generally accepted auditing standards, or other professional or regulatory standards.
(b) Not to perform audit, review, or other procedures required by generally accepted auditing standards or other professional standards.
(c) Not to withdraw an issued report.
(d) Not to communicate matters to an insurer's audit committee.
History:
Add. 2008, Act 342, Imd. Eff. Dec. 23, 2008
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) › 218-1956-10 - Chapter 10 Annual Audited Financial Reports (500.1001...500.1033) › Section 500.1033 - Exemption From Any or All Provisions of Chapter.

500.1033 Exemption from any or all provisions of chapter.
Sec. 1033.
Upon written application of any insurer, the commissioner may grant an exemption from compliance with any or all provisions of this chapter if the commissioner finds, upon review of the application, that compliance with this chapter would constitute a financial or organizational hardship upon the insurer. An exemption may be granted at any time and from time to time for a specified period or periods. An exemption granted under this section shall be filed by the insurer with the states that it is licensed in or doing business in and with the national association of insurance commissioners. If the nondomestic state accepts electronic filing with the national association of insurance commissioners, the insurer shall file the approval in an electronic format acceptable to the national association of insurance commissioners. Within 10 days from a denial of an insurer's written request for an exemption from this chapter, the insurer may request in writing a hearing on its application for an exemption. The hearing shall be held pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
History:
Add. 2008, Act 342, Imd. Eff. Dec. 23, 2008
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) › 218-1956-11 - Chapter 11 Reinsurance (500.1101...500.1127) › Section 500.1101 - “Qualified United States Financial Institution” Defined.

500.1101 “Qualified United States financial institution” defined.
Sec. 1101.
For purposes of this chapter, a "qualified United States financial institution" means an institution that meets either subdivision (a) or (b):
(a) Is organized, or in the case of a United States office of a foreign banking organization, is licensed, under the laws of the United States or any state in the United States, is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies, and has been determined by the commissioner to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner.
(b) For those institutions that are eligible to act as a fiduciary of a trust, is organized, or in the case of a United States branch or agency office of a foreign banking organization, is licensed, under the laws of the United States or any state in the United States, has been granted authority to operate with fiduciary powers, and is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies.
History:
Add. 1994, Act 226, Imd. Eff. June 27, 1994 ;-- Am. 2000, Act 283, Imd. Eff. July 10, 2000
Compiler's Notes:
Enacting section 1 of Act 283 of 2000 provides:“Enacting section 1. The legislature declares that the provisions of this amendatory act are fundamental to the business of insurance as provided in sections 1 and 2 of chapter 20, popularly known as the McCarran-Ferguson act, 59 Stat. 33 and 34, 15 U.S.C. 1011 and 1012. It is the intent of this amendatory act that upon the insolvency of an alien insurer or reinsurer that provides security to fund its United States obligations under the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302, the assets representing the security shall be maintained in the United States and claims shall be filed with and valued by the state insurance commissioner with regulatory oversight, and the assets shall be distributed under the insurance laws of the state where the trust is domiciled that are applicable to the liquidation of domestic United States insurance companies.”
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) › 218-1956-11 - Chapter 11 Reinsurance (500.1101...500.1127) › Section 500.1106 - Rules.

500.1106 Rules.
Sec. 1106.
(1) Subject to subsections (2) and (3), the director may promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, with regard to reinsurance agreements concerning any of the following:
(a) Life insurance policies with guaranteed nonlevel gross premiums or guaranteed nonlevel benefits, if the reinsurance treaty meets either of the following criteria:
(i) Contains policies issued after December 31, 2014.
(ii) Contains policies issued before January 1, 2015, if the risk pertaining to the policies is ceded, in whole or in part, in connection with the treaty, after December 31, 2014.
(b) Universal life insurance policies with provisions resulting in the ability of a policyholder to keep a policy in force over a secondary guarantee period, if the reinsurance treaty meets either of the following criteria:
(i) Contains policies issued after December 31, 2014.
(ii) Contains policies issued before January 1, 2015, if the risk pertaining to the policies is ceded, in whole or in part, in connection with the treaty, after December 31, 2014.
(c) Variable annuities with guaranteed death or living benefits.
(d) Long-term care insurance policies.
(e) Other life and health insurance and annuity products as the director considers necessary for the administration of sections 1103 and 1105.
(2) A rule promulgated under subsection (1) may require a ceding insurer to use the valuation manual adopted by the NAIC under section 11b(1) of the NAIC standard valuation law when calculating amounts or forms of security required to be held under law.
(3) A rule promulgated pursuant to subsection (1) does not apply to cessions to an assuming insurer that meets any of the following criteria:
(a) The assuming insurer meets the conditions under section 1103(7).
(b) The assuming insurer is certified as a reinsurer in this state.
(c) The assuming insurer maintains at least $250,000,000.00 in capital and surplus when determined in accordance with the NAIC accounting practices and procedures manual and meets either of the following criteria:
(i) The assuming insurer is licensed to transact insurance or reinsurance in at least 26 states.
(ii) The assuming insurer is licensed to transact insurance or reinsurance in at least 10 states, and is licensed to transact insurance or reinsurance or accredited as a reinsurer in a total of at least 35 states.
(4) As used in this section, "NAIC" means the National Association of Insurance Commissioners.
History:
Add. 2018, Act 91, Eff. June 24, 2018 ;-- Am. 2020, Act 328, Eff. Mar. 24, 2021
Compiler's Notes:
Former MCL 500.1106, which pertained to administration of deposits, was repealed by Act 360 of 1972, 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) › 218-1956-11 - Chapter 11 Reinsurance (500.1101...500.1127) › Section 500.1108-500.1120 - Repealed. 1972, Act 360, Imd. Eff. Jan. 9, 1973.

500.1108-500.1120 Repealed. 1972, Act 360, Imd. Eff. Jan. 9, 1973.
Compiler's Notes:
The repealed sections pertained to administration of deposits.
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) › 218-1956-11 - Chapter 11 Reinsurance (500.1101...500.1127) › Section 500.1121 - Applicability of MCL 500.1123 to 500.1127 to Certain Insurers.

500.1121 Applicability of MCL 500.1123 to 500.1127 to certain insurers.
Sec. 1121.
The provisions of sections 1123 through 1127 apply to all life and disability insurers and also apply to licensed property and casualty insurers with respect to their disability insurance business. Sections 1123 through 1127 do not apply to assumption reinsurance, yearly renewable term reinsurance, or certain nonproportional reinsurance such as excess or catastrophe reinsurance.
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) › 218-1956-11 - Chapter 11 Reinsurance (500.1101...500.1127) › Section 500.1124 - Repealed. 1972, Act 360, Imd. Eff. Jan. 9, 1973.

500.1124 Repealed. 1972, Act 360, Imd. Eff. Jan. 9, 1973.
Compiler's Notes:
The repealed section pertained to administration of deposits.
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) › 218-1956-11 - Chapter 11 Reinsurance (500.1101...500.1127) › Section 500.1127 - Reinsurance Agreements; Reduction to Zero of Certain Reserve Credits or Assets.

500.1127 Reinsurance agreements; reduction to zero of certain reserve credits or assets.
Sec. 1127.
Insurers subject to sections 1121 through 1125 shall reduce to zero by December 31, 1994 any reserve credits or assets established with respect to reinsurance agreements entered into prior to the effective date of this chapter that, under the provisions of this chapter, would not be entitled to recognition as reserve credits or assets, so long as those reinsurance agreements were in compliance with laws or regulations in effect immediately preceding the effective date of this chapter.
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) › 218-1956-11A - Chapter 11a Reinsurance Intermediaries (500.1151...500.1171) › Section 500.1155 - Transactions Between Reinsurance Intermediary-Broker and Insurer; Authorization.

500.1155 Transactions between reinsurance intermediary-broker and insurer; authorization.
Sec. 1155.
Transactions between a reinsurance intermediary-broker and the insurer it represents in such capacity shall be entered into only pursuant to a written authorization, specifying the responsibilities of each party. The authorization shall, at a minimum, provide for all of the following:
(a) That the insurer may terminate the reinsurance intermediary-broker's authority at any time.
(b) That the reinsurance intermediary-broker will render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing to, the reinsurance intermediary-broker, and remit all funds due to the insurer within 30 days of receipt.
(c) That all funds collected for the insurer's account will be held by the reinsurance intermediary-broker in a fiduciary capacity in a bank that is a qualified United States financial institution.
(d) That the reinsurance intermediary-broker will comply with the record-keeping requirements of section 1157.
(e) That the insurer will have access and the right to copy and audit all accounts and records maintained by the reinsurance intermediary-broker related to its business in a form usable by the insurer.
(f) That the reinsurance intermediary-broker will comply with the written standards established by the insurer for the cession or retrocession of all risks.
(g) That the reinsurance intermediary-broker will disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
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) › 218-1956-11A - Chapter 11a Reinsurance Intermediaries (500.1151...500.1171) › Section 500.1157 - Record of Transaction.

500.1157 Record of transaction.
Sec. 1157.
For at least 10 years after expiration of each contract of reinsurance transacted by a reinsurance intermediary, the reinsurance intermediary will keep a complete record for each transaction showing all of the following:
(a) The type of contract, limits, underwriting restrictions, classes or risks, and territory.
(b) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required of cancellation.
(c) Reporting and settlement requirements of balances.
(d) Rate used to compute the reinsurance premium.
(e) Names and addresses of assuming reinsurers.
(f) Rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary.
(g) Related correspondence and memoranda.
(h) Proof of placement.
(i) Details regarding retrocessions handled by the reinsurance intermediary including the identity of retrocessionaires and percentage of each contract assumed or ceded.
(j) Financial records, including, but not limited to, premium and loss accounts.
(k) When the reinsurance intermediary procures a reinsurance contract on behalf of a licensed ceding insurer as follows:
(i) If directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk.
(ii) If placed through a representative of the assuming reinsurer, other than an employee, written evidence that the reinsurer has delegated binding authority to the representative.
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) › 218-1956-11A - Chapter 11a Reinsurance Intermediaries (500.1151...500.1171) › Section 500.1159 - Person Acting as Reinsurance-Broker; License Required; Employment of Individual Employed by Reinsurance Intermediary-Broker; Annual Copy of Statements of Financial Condition.

500.1159 Person acting as reinsurance-broker; license required; employment of individual employed by reinsurance intermediary-broker; annual copy of statements of financial condition.
Sec. 1159.
(1) An insurer shall not engage the services of any person to act as a reinsurance intermediary-broker on its behalf unless the person is licensed as required by section 1153.
(2) An insurer may not employ an individual who is employed by a reinsurance intermediary-broker with which it transacts business, unless the reinsurance intermediary-broker is under common control with the insurer and subject to chapter 13.
(3) The insurer shall obtain annually a copy of statements of the financial condition of each reinsurance intermediary-broker with which it transacts business.
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) › 218-1956-11A - Chapter 11a Reinsurance Intermediaries (500.1151...500.1171) › Section 500.1163 - Reinsurance Intermediary-Manager; Prohibited Conduct.

500.1163 Reinsurance intermediary-manager; prohibited conduct.
Sec. 1163.
A reinsurance intermediary-manager shall not do any of the following:
(a) Cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary-manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. These guidelines shall include a list of reinsurers with which the automatic agreements are in effect, and for each reinsurer, the coverages and amounts or percentages that may be reinsured and commission schedules.
(b) Commit the reinsurer to participate in reinsurance syndicates.
(c) Appoint any agent without assuring that the agent is lawfully licensed to transact the type of reinsurance for which he or she is appointed.
(d) Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or 1% of the reinsurer's policyholder's surplus as of December 31 of the preceding calendar year.
(e) Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer.
(f) Jointly employ an individual who is employed by the reinsurer unless the reinsurance intermediary-manager is under common control with the reinsurer subject to chapter 13.
(g) Appoint a subreinsurance intermediary-manager.
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) › 218-1956-11A - Chapter 11a Reinsurance Intermediaries (500.1151...500.1171) › Section 500.1165 - Reinsurance Intermediary-Manager; License Required; Obtaining Annual Copy of Statement of Financial Condition and Opinion of Actuary; Authority for Retrocessional Contracts or Participation in Reinsurance Syndicates; Termination of Contract; Appointment to Board of Directors.

500.1165 Reinsurance intermediary-manager; license required; obtaining annual copy of statement of financial condition and opinion of actuary; authority for retrocessional contracts or participation in reinsurance syndicates; termination of contract; appointment to board of directors.
Sec. 1165.
(1) A reinsurer shall not engage the services of any person to act as a reinsurance intermediary-manager on its behalf unless the person is licensed as required by section 1153.
(2) The reinsurer shall obtain annually a copy of statements of the financial condition of each reinsurance intermediary-manager that the reinsurer has engaged. The statements shall be prepared by an independent certified accountant and shall be in a form acceptable to the commissioner.
(3) If a reinsurance intermediary-manager establishes loss reserves, the reinsurer shall obtain annually the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary-manager. This opinion shall be in addition to any other required loss reserve certification.
(4) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance intermediary-manager.
(5) Within 30 days of termination of a contract with a reinsurance intermediary-manager, the reinsurer shall provide written notification of the termination to the commissioner.
(6) A reinsurer shall not appoint to its board of directors any officer, director, employee, controlling shareholder, or subproducer of its reinsurance intermediary-manager. This subsection shall not apply to relationships governed by chapter 13 or, if applicable, chapter 14a.
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) › 218-1956-11A - Chapter 11a Reinsurance Intermediaries (500.1151...500.1171) › Section 500.1167 - Reinsurance Intermediary and Reinsurance Intermediary-Manager; Examination of Books, Bank Accounts, and Records.

500.1167 Reinsurance intermediary and reinsurance intermediary-manager; examination of books, bank accounts, and records.
Sec. 1167.
(1) A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts, and records of the reinsurance intermediary in a form usable to the commissioner.
(2) A reinsurance intermediary-manager may be examined as if it were the reinsurer.
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) › 218-1956-11A - Chapter 11a Reinsurance Intermediaries (500.1151...500.1171) › Section 500.1169 - Violation; Penalties.

500.1169 Violation; penalties.
Sec. 1169.
(1) A reinsurance intermediary, insurer, or reinsurer found by the commissioner to be in violation of any of the provisions of this chapter, after a hearing held pursuant to 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, is subject to all of the following penalties:
(a) For each separate violation, payment of a civil fine of not more than $5,000.00.
(b) The suspension, limitation, or revocation of its license.
(c) If a violation was committed by the reinsurance intermediary, the reinsurance intermediary shall make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to the violation.
(2) This section does not preclude the commissioner from imposing any other penalties provided in this act.
(3) This chapter shall not in any manner confer any rights upon or limit or restrict the rights of policyholders, claimants, creditors, or other third parties.
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) › 218-1956-11A - Chapter 11a Reinsurance Intermediaries (500.1151...500.1171) › Section 500.1171 - Reinsurance Intermediary; Use of Services.

500.1171 Reinsurance intermediary; use of services.
Sec. 1171.
Neither an insurer nor a reinsurer shall continue to use the services of a reinsurance intermediary on or after December 31, 1994 except in compliance with this chapter.
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1200 - “Good Moral Character” Defined.

500.1200 “Good moral character” defined.
Sec. 1200.
As used in this chapter, "good moral character" means good moral character as defined and determined under Act No. 381 of the Public Acts of 1974, as amended, being sections 338.41 to 338.47 of the Michigan Compiled Laws.
History:
Add. 1980, Act 390, Imd. Eff. Jan. 7, 1981
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1201a - Sale, Solicitation, or Negotiation of Insurance; License Required; Applicability to Excess and Surplus Lines Agents and Brokers.

500.1201a Sale, solicitation, or negotiation of insurance; license required; applicability to excess and surplus lines agents and brokers.
Sec. 1201a.
(1) A person shall not sell, solicit, or negotiate insurance in this state for any line of insurance unless the person is licensed for that qualification in accordance with this chapter.
(2) This chapter does not apply to excess and surplus lines agents and brokers licensed under chapter 19 except as provided in sections 1204e and 1206a.
History:
Add. 2001, Act 228, Eff. Mar. 1, 2002
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1203 - Authority of Insurance Producer for Fraternal Benefit Society; Authority of Attorney-in-Fact of Reciprocal or Inter-Insurance Exchange.

500.1203 Authority of insurance producer for fraternal benefit society; authority of attorney-in-fact of reciprocal or inter-insurance exchange.
Sec. 1203.
(1) A person may act as an insurance producer only for a fraternal benefit society authorized to transact insurance in this state without being licensed as an insurance producer if less than 50% of his or her time is devoted to the solicitation and procurement of insurance contracts for the society. A person who in the preceding calendar year solicits or procures life insurance contracts on behalf of any society in an amount of insurance in excess of $50,000.00, or, in case of any other kind of insurance that the society might write, on the persons of more than 25 individuals and who has received a commission or other compensation for the sale of that insurance is conclusively presumed to be devoting 50% of his or her time to the solicitation or procurement of insurance contracts for the society. An insurance producer for a fraternal benefit society authorized to transact insurance in this state before March 1, 2002 may, upon application to the commissioner before March 1, 2003, be licensed as an insurance producer to represent that fraternal benefit society without written examination.
(2) An attorney-in-fact of a reciprocal or of an inter-insurance exchange may act as an insurance producer for the reciprocal or exchange.
History:
Add. 1972, Act 133, Eff. Mar. 30, 1973 ;-- Am. 2001, Act 228, Eff. Mar. 1, 2002
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1204b - Repealed. 2017, Act 67, Imd. Eff. June 30, 2017.

500.1204b Repealed. 2017, Act 67, Imd. Eff. June 30, 2017.
Compiler's Notes:
The repealed section pertained to creation of insurance education advisory council.
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1204d - Continuing Education Fund; Creation; Administration; Disposition and Reversion of Funds; Funding of Shortfall.

500.1204d Continuing education fund; creation; administration; disposition and reversion of funds; funding of shortfall.
Sec. 1204d.
(1) The continuing education fund is created as a separate, self-supporting fund and shall be administered by the commissioner. Money in the continuing education fund shall be used for the administration of the continuing education requirements in section 1204c.
(2) Money received pursuant to section 1204c shall be deposited in the continuing education fund.
(3) Money in the continuing education fund shall not revert to the general fund at the close of the fiscal year but shall remain in the continuing education fund.
(4) Notwithstanding section 240(3), if money in the continuing education fund is not sufficient to provide for the administration of the continuing education requirements in section 1204c, the shortfall shall be funded from the agent's appointment fees required by section 240(1)(c).
History:
Add. 1992, Act 1, Eff. Jan. 1, 1993
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1204e - Nonresident License Applicant; Requirements.

500.1204e Nonresident license applicant; requirements.
Sec. 1204e.
(1) The commissioner shall waive any requirements for a nonresident license applicant with a valid license from his or her home state, except the requirements under section 1206a, if the applicant's home state awards nonresident licenses to residents of this state on the same basis.
(2) A nonresident insurance producer's satisfaction of his or her home state's continuing education requirements for licensed insurance producers shall constitute satisfaction of this state's continuing education requirements if the nonresident producer's home state recognizes the satisfaction of its continuing education requirements imposed upon producers from this state on the same basis.
History:
Add. 2001, Act 228, Eff. Mar. 1, 2002
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1205 - Resident Insurance Producer License; Filing; Application; Statement; Requirements; Business Entity; Verification of Information; Limited Line Credit Insurance.

500.1205 Resident insurance producer license; filing; application; statement; requirements; business entity; verification of information; limited line credit insurance.
Sec. 1205.
(1) A person applying for a resident insurance producer license shall file with the director the uniform application required by the director and shall declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. The director shall not approve an application for a resident insurer producer license unless the director finds that the individual meets all of the following conditions:
(a) Is at least 18 years of age.
(b) Has not committed any act listed in section 1239(1).
(c) As required under section 1204(2), has completed a prelicensing course of study for the qualifications for which the person has applied.
(d) Has paid the fees applicable to the individual under section 240.
(e) Has successfully passed the examination required for each qualification for which the person has applied.
(2) A business entity acting as an insurance producer shall obtain an insurance producer license. A business entity applying for an insurance producer license shall file with the director the uniform business entity application required by the director. The director shall not approve an application for an insurance producer license under this subsection unless the director finds all of the following:
(a) The business entity has paid the fees under section 240(1)(d).
(b) The business entity has designated an individual licensed producer responsible for the business entity's compliance with this state's insurance laws, rules, and regulations.
(c) The business entity has not committed any act listed in section 1239(1).
(3) The director may require the production of any documents reasonably necessary to verify the information contained in an application.
(4) An insurer that sells, solicits, or negotiates any form of limited line credit insurance shall provide to each individual whose duties will include selling, soliciting, or negotiating limited line credit insurance a program of instruction that may be approved by the director.
History:
Add. 1972, Act 133, Eff. Mar. 30, 1973 ;-- Am. 2001, Act 228, Eff. Mar. 1, 2002 ;-- Am. 2008, Act 422, Imd. Eff. Jan. 6, 2009 ;-- Am. 2019, Act 124, Eff. May 21, 2020
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1206a - Nonresident Insurance Producer License; Requirements; Verification of Status; Change of Address; Nonresident Surplus Lines Insurance Producer License; Nonresident Limited Lines Insurance Producer.

500.1206a Nonresident insurance producer license; requirements; verification of status; change of address; nonresident surplus lines insurance producer license; nonresident limited lines insurance producer.
Sec. 1206a.
(1) Unless denied licensure under section 1239, a nonresident person shall receive a nonresident insurance producer license if he or she meets all of the following:
(a) Is currently licensed as a resident and in good standing in his or her home state.
(b) Has submitted the proper request for licensure and has paid the applicable fees required by section 240.
(c) Has submitted or transmitted to the commissioner the application for licensure that the person submitted to his or her home state or a completed uniform application as required by the commissioner.
(d) The person's home state awards nonresident producer licenses to residents of this state on the same basis.
(2) The commissioner may verify the insurance producer's licensing status through the producer database maintained by the national association of insurance commissioners or its affiliates or subsidiaries.
(3) A nonresident insurance producer who moves from 1 state to another state or a resident insurance producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within 30 days of the change of legal residence. No fee or license application is required.
(4) Notwithstanding any other provision of this chapter, a person licensed as a surplus lines insurance producer in his or her home state shall receive a nonresident surplus lines insurance producer license pursuant to subsection (1). Except as otherwise provided in subsection (1), this section does not otherwise amend or supersede any provision of chapter 19.
(5) Notwithstanding any other provision of this chapter, a person licensed as a limited line credit insurance or other type of limited lines insurance producer in his or her home state shall receive a nonresident limited lines insurance producer license, pursuant to subsection (1), granting the same scope of authority as granted under the license issued by the producer's home state. For the purposes of this subsection, limited lines insurance is any authority granted by the home state that restricts the authority of the license to less than the total authority prescribed in the associated major lines under section 1206(1)(a) to (f).
History:
Add. 2001, Act 228, Eff. Mar. 1, 2002
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1206b - Nonresident Insurance Producer License; Prelicensing Education or Examination; Exemption; Application as Resident Licensee.

500.1206b Nonresident insurance producer license; prelicensing education or examination; exemption; application as resident licensee.
Sec. 1206b.
(1) An individual who applies for an insurance producer license in this state who was previously licensed for the same qualifications in another state is not required to complete any prelicensing education or examination. This exemption is only available if the person is currently licensed in that state or if the application is received within 90 days of the cancellation of the applicant's previous license and if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state's producer database records, maintained by the national association of insurance commissioners, its affiliates, or its subsidiaries, indicate that the producer is or was licensed in good standing for the qualification requested.
(2) A person licensed as an insurance producer in another state who moves to this state shall apply within 90 days after establishing legal residence to become a resident licensee pursuant to section 1205. Prelicensing education or examination is not required of that person to obtain any qualification previously held in the prior state except where the commissioner determines otherwise by rule.
History:
Add. 2001, Act 228, Eff. Mar. 1, 2002
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) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1206c - Life and Health Insurance Producer Examinations; Summary of Statistical Information; Report.

500.1206c Life and health insurance producer examinations; summary of statistical information; report.
Sec. 1206c.
By not later than 6 months after the effective date of this section and by April 30 of each year thereafter, the commissioner or a designee of the commissioner shall prepare and publish a report that summarizes statistical information relating to life and health insurance producer examinations administered during the preceding calendar year. The report shall include, but is not limited to, all of the following information:
(a) The total number of examinees.
(b) The percentage and number of examinees who passed the examination.
(c) The mean scaled scores on the examination.
(d) The standard deviation of scaled scores on the examination.
(e) The correct answer rate and correlation for each test question and each test form.
History:
Add. 2008, Act 494, Imd. Eff. Jan. 13, 2009
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-12 - Chapter 12 Agents, Solicitors, Adjusters, and Counselors (500.1200...500.1247) › Section 500.1208 - Insurance Effected by Agent on Certain Risks; Limitation.

500.1208 Insurance effected by agent on certain risks; limitation.
Sec. 1208.
An agent, during any 12-month period, may not effect insurance upon his own property, life or other risk and the property, life or other risk of his employees, employer or business associates, in excess of 15% of the total premium which he effected during that period.
History:
Add. 1972, Act 133, Eff. Mar. 30, 1973
Popular Name:
Act 218