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) › 218-1956-77 - Chapter 77 (500.7701...500.7780) › Section 500.7707 - Board of Directors; Appointment and Election of Members; Vacancy; Notice of Organizational Meeting; Voting Rights; Approval of Election or Appointment; Fair Representation Required; Reimbursement for Expenses.

500.7707 Board of directors; appointment and election of members; vacancy; notice of organizational meeting; voting rights; approval of election or appointment; fair representation required; reimbursement for expenses.
Sec. 7707.
(1) The board of directors of the association shall consist of not less than 5 nor more than 9 member insurers and 2 persons representing the general public serving terms as established in the plan of operation. The 2 members of the board representing the general public shall be appointed by the commissioner, shall not be engaged in the business of insurance, and shall not be officers, directors, or employees of an insurance company. The remaining members of the board shall be elected by member insurers subject to the approval of the commissioner. A vacancy on the board for a member representing the general public shall be filled for the remaining period of the term by appointment by the commissioner. A vacancy on the board for a member representing member insurers shall be filled for the remaining period of the term by a majority vote of the remaining board members, subject to the approval of the commissioner. To elect the initial board of directors, and initially organize the association, the commissioner shall give notice to all member insurers of the time and place of the organizational meeting. In determining voting rights at the organizational meeting each member insurer shall be entitled to 1 vote in person or by proxy.
(2) In approving an election or in appointing a member to the board, the commissioner shall consider, among other things, whether all member insurers are fairly represented.
(3) A member of the board may be reimbursed from the assets of the association for expenses incurred by the member as a member of the board of directors but a member of the board shall not otherwise be compensated by the association for his or her services.
History:
Add. 1982, Act 194, Imd. Eff. June 28, 1982 ;-- Am. 2006, Act 671, Imd. Eff. Jan. 10, 2007
Compiler's Notes:
Enacting section 1(1) of Act 671 of 2006 provides:"Enacting section 1. (1) Sections 7702, 7704, 7705, 7706, 7707, 7708, 7709, 7711, 7712, 7714, and 7717 of the insurance code of 1956, 1956 PA 218, MCL 500.7702, 500.7704, 500.7705, 500.7706, 500.7707, 500.7708, 500.7709, 500.7711, 500.7712, 500.7714, and 500.7717, as amended by this amendatory act, apply to an insurer impairment or insurer insolvency proceeding commenced on or after the effective date of this amendatory act for which guaranty association coverage obligations are incurred."
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) › 218-1956-77 - Chapter 77 (500.7701...500.7780) › Section 500.7710 - Plan of Operation and Amendments; Submission to Commissioner; Effective Date; Failure to Submit Suitable Plan or Amendments; Rules; Compliance by Member Insurers; Contents of Plan; Providing for Delegation of Powers and Duties of Association to Other Organization.

500.7710 Plan of operation and amendments; submission to commissioner; effective date; failure to submit suitable plan or amendments; rules; compliance by member insurers; contents of plan; providing for delegation of powers and duties of association to other organization.
Sec. 7710.
(1) The association shall submit to the commissioner a plan of operation and amendments to the plan necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The plan of operation and amendments to the plan shall become effective upon approval in writing by the commissioner or if he or she has not disapproved it within 30 days after submission.
(2) If the association fails to submit a suitable plan of operation within 60 days following the effective date of this chapter or if at any time the association fails to submit suitable amendments to the plan, the commissioner shall, after notice and hearing, promulgate rules reasonably necessary or advisable to effectuate this chapter. The rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the association and approved by the commissioner.
(3) All member insurers shall comply with the plan of operation.
(4) In addition to requirements enumerated elsewhere in this chapter, the plan of operation shall contain the following:
(a) Procedures for handling the assets of the association.
(b) The amount and method of reimbursing members of the board of directors under section 7707.
(c) Regular places and times for meetings of the board of directors.
(d) Procedures for records to be kept of financial transactions of the association, the association's agents, and the board of directors.
(e) Procedures for election of the board of directors and for submission of board members to the commissioner.
(f) Additional procedures for assessments under section 7709.
(g) Additional provisions necessary or proper for the execution of the powers and duties of the association.
(5) The plan of operation may provide that any or all powers and duties of the association, except those under sections 7708(16)(c) and 7709, are delegated to a corporation, association, or other organization which performs or will perform functions similar to those of the association, or the association's equivalent, in 2 or more states.
History:
Add. 1982, Act 194, Imd. Eff. June 28, 1982 ;-- Am. 1989, Act 302, Imd. Eff. Jan. 3, 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) › 218-1956-77 - Chapter 77 (500.7701...500.7780) › Section 500.7715 - Examination and Regulation of Association by Commissioner; Financial Report; Report of Activities.

500.7715 Examination and regulation of association by commissioner; financial report; report of activities.
Sec. 7715.
The association shall be subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner, not later than May 1 of each year, a financial report for the preceding calendar year in a form approved by the commissioner and a report of the association's activities during the preceding calendar year.
History:
Add. 1982, Act 194, Imd. Eff. June 28, 1982
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) › 218-1956-77 - Chapter 77 (500.7701...500.7780) › Section 500.7716 - Association Exempt From Fees and Taxes; Exception.

500.7716 Association exempt from fees and taxes; exception.
Sec. 7716.
The association shall be exempt from payment of fees and taxes levied by this state or its political subdivisions, except taxes levied on real property.
History:
Add. 1982, Act 194, Imd. Eff. June 28, 1982
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) › 218-1956-77 - Chapter 77 (500.7701...500.7780) › Section 500.7717 - Nonliability of Member Insurer, Association, Board of Directors, or Commissioner in Performance of Powers and Duties.

500.7717 Nonliability of member insurer, association, board of directors, or commissioner in performance of powers and duties.
Sec. 7717.
There is no liability on the part of and a cause of action does not arise against a member insurer or an insurer's agents or employees, the association or the association's agents or employees, members of the board of directors, or the commissioner or his or her representatives for any action or omission by them in the performance of powers and duties under this act. This immunity shall extend to the participation in an organization of 1 or more other state associations of similar purposes and to the organization and its agents or employees.
History:
Add. 1982, Act 194, Imd. Eff. June 28, 1982 ;-- Am. 1989, Act 302, Imd. Eff. Jan. 3, 1990 ;-- Am. 2006, Act 671, Imd. Eff. Jan. 10, 2007
Popular Name:
Act 218
Compiler's Notes:
Enacting section 1(1) of Act 671 of 2006 provides:"Enacting section 1. (1) Sections 7702, 7704, 7705, 7706, 7707, 7708, 7709, 7711, 7712, 7714, and 7717 of the insurance code of 1956, 1956 PA 218, MCL 500.7702, 500.7704, 500.7705, 500.7706, 500.7707, 500.7708, 500.7709, 500.7711, 500.7712, 500.7714, and 500.7717, as amended by this amendatory act, apply to an insurer impairment or insurer insolvency proceeding commenced on or after the effective date of this amendatory act for which guaranty association coverage obligations are incurred."
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-77 - Chapter 77 (500.7701...500.7780) › Section 500.7718 - Stay of Proceedings in Which Insolvent Insurer Party; Setting Aside Default Judgment; Defense.

500.7718 Stay of proceedings in which insolvent insurer party; setting aside default judgment; defense.
Sec. 7718.
All proceedings in which an insolvent insurer is a party in a court in this state shall be stayed 60 days from the date an order of liquidation, rehabilitation, or conservation is final to permit proper legal action by the association on a matter germane to the association's powers or duties. If a judgment under a decision, order, verdict, or finding is based on default, the association may apply to have the judgment set aside by the same court that made the judgment and shall be permitted to defend in the action on the merits.
History:
Add. 1982, Act 194, Imd. Eff. June 28, 1982
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) › 218-1956-77 - Chapter 77 (500.7701...500.7780) › Section 500.7719 - Repealed. 1989, Act 302, Eff. Jan. 3, 1990.

500.7719 Repealed. 1989, Act 302, Eff. Jan. 3, 1990.
Compiler's Notes:
The repealed section pertained to prohibited advertisement, announcement, or statement.
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) › 218-1956-77 - Chapter 77 (500.7701...500.7780) › Section 500.7780 - Applicability of Chapter to Delinquent Insurer.

500.7780 Applicability of chapter to delinquent insurer.
Sec. 7780.
This chapter applies to a delinquent insurer for which delinquency proceedings have been commenced on or after May 1, 1982.
History:
Add. 1982, Act 194, Imd. Eff. June 28, 1982
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) › 218-1956-78 - Chapter 78 Liquidations and Receiverships (500.7800...500.7868) › Section 500.7800-500.7868 - Repealed. 1989, Act 302, Eff. Jan. 3, 1990.

500.7800-500.7868 Repealed. 1989, Act 302, Eff. Jan. 3, 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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7901 - Property and Casualty Guaranty Association Act; Short Title.

500.7901 Property and casualty guaranty association act; short title.
Sec. 7901.
This chapter constitutes, and may be cited as the "property and casualty guaranty association act".
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7911 - Property and Casualty Guaranty Association; Membership; Exception; Laws to Which Association Subject.

500.7911 Property and casualty guaranty association; membership; exception; laws to which association subject.
Sec. 7911.
(1) To implement this chapter, there shall be maintained within this state, by all insurers authorized to transact in this state insurance other than life or disability insurance, except the Michigan basic property insurance association created pursuant to section 2920, an association of those insurers to be known as the property and casualty guaranty association, hereafter referred to as the "association". Each insurer shall be a member of the association as a condition of its authority to continue to transact insurance in this state.
(2) An insurer from which insurance has been or may be procured in this state solely by virtue of chapter 19 shall not be considered to be an insurer authorized to transact insurance in this state for the purposes of this chapter.
(3) The association is subject to the requirements of this chapter and chapter 81 but is not subject to the other chapters of this act. The association shall be subject to other laws of this state to the extent that it would be subject to those laws if it were an insurer organized and operating under chapter 50, to the extent that those other laws are consistent with this chapter.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969 ;-- Am. 1972, Act 207, Imd. Eff. June 30, 1972 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980 ;-- Am. 1982, Act 502, Eff. Mar. 30, 1983 ;-- Am. 1990, Act 137, Eff. June 29, 1990 ;-- Am. 1993, Act 200, Eff. Dec. 28, 1994 ;-- Am. 2006, Act 365, Imd. Eff. Sept. 18, 2006
Compiler's Notes:
Act 143 of 1993, which amended this section, was submitted to the people by referendum petition (as Proposal C) and rejected by a majority of the votes cast at the November 8, 1994, general election.Section 3 of Act 200 of 1993 provides as follows:“Section 3. This amendatory act shall not take effect unless the state administrative board certifies in writing to the secretary of state by December 31, 1994 that an agreement for the transfer of all or substantially all of the assets and the assumption of all or substantially all of the liabilities of the state accident fund has been consummated with a permitted transferee pursuant to the requirements of section 701a of the worker's disability compensation act of 1969, Act No. 317 of the Public Acts of 1969, being section 418.701a of the Michigan Compiled Laws.”
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7911a - Life or Disability Insurer Not to Be Member of Association.

500.7911a Life or disability insurer not to be member of association.
Sec. 7911a.
Notwithstanding section 7911, a life or disability insurer shall not be a member of the association.
History:
Add. 1982, Act 501, Imd. Eff. Dec. 31, 1982 ;-- Am. 1996, Act 548, Imd. Eff. Jan. 15, 1997
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7912 - Property and Casualty Guaranty Association; Board of Governors; Appointment, Terms, and Qualifications of Members; Vacancy.

500.7912 Property and casualty guaranty association; board of governors; appointment, terms, and qualifications of members; vacancy.
Sec. 7912.
(1) The association shall be managed by a board of governors, composed of 5 member insurers and 2 persons representing the general public, each of whom shall be appointed by the commissioner to serve for terms of 3 years and until their successors are appointed and qualified. Three of the governors who are member insurers shall be domestic insurers and 2 shall be foreign insurers. At least 2 governors who are member insurers shall be stock insurers and at least 2 shall be nonstock insurers. The 5 governors who are member insurers shall be representative, as nearly as possible, of all the kinds of insurance covered by this chapter.
(2) In case of a vacancy for any reason in the office of any governor, the commissioner shall appoint a person to fill the unexpired term of the vacant office to maintain the membership of the board as required in subsection (1).
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969 ;-- Am. 1982, Act 502, Eff. Mar. 30, 1983
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7914 - Property and Casualty Guaranty Association; Plan of Operation, Adoption, Amendment, Approval; Failure to Adopt Operation Plan.

500.7914 Property and casualty guaranty association; plan of operation, adoption, amendment, approval; failure to adopt operation plan.
Sec. 7914.
(1) The association shall adopt a plan of operation and any amendments thereof, not inconsistent with the provisions of this chapter, necessary to assure the fair, reasonable and equitable manner of administering the association, and to provide for such other matters as are necessary or advisable to implement the provisions of this chapter. The plan of operation and any amendments thereof shall be subject to prior written approval by the commissioner. All members of the association shall adhere to the plan of operation.
(2) If for any reason the association fails to adopt a suitable plan of operation within 6 months following the effective date of this chapter, or if at any time thereafter the association fails to adopt suitable amendments to the plan of operation, the commissioner shall adopt and promulgate such reasonable rules as are necessary or advisable to effectuate the provisions of this act. Such rules shall continue in force until modified by the commissioner or superseded by a plan of operation adopted by the association and approved by the commissioner.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7916 - Property and Casualty Guaranty Association; Servicing Facilities; Designation; Reimbursement; Authority; Approval.

500.7916 Property and casualty guaranty association; servicing facilities; designation; reimbursement; authority; approval.
Sec. 7916.
In accordance with its plan of operation the association may designate 1 or more of its members as servicing facilities but a member may decline such designation. Each servicing facility shall be reimbursed by the association for any expenses it incurs and for any payments it makes on behalf of the association. Each servicing facility shall have authority to perform any functions of the association that the governors lawfully may delegate to it and to do so on behalf of and in the name of the association. The designation of servicing facilities shall be subject to the approval of the commissioner.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7918 - Property and Casualty Guaranty Association; Powers Generally.

500.7918 Property and casualty guaranty association; powers generally.
Sec. 7918.
(1) The association may borrow funds when necessary to implement this act.
(2) The association, either in its own name or through a servicing facility, may sue or be sued, and may use the courts to assert or defend any rights the association may have under this chapter, to the extent necessary to fully exercise its rights and perform its duties under, and to implement, this chapter.
(3) The association may retain and employ legal counsel in its discretion to represent the association in all respects.
(4) The association may bring an action against any third party administrator, agent, attorney, or other representative of the insolvent insurer to obtain custody and control of all claims information, including all files, records, and electronic data related to an insolvent company that are appropriate or necessary for the association, or a similar association in other states, to carry out its duties under this act. The association shall have the absolute right through emergency equitable relief to obtain custody and control of all claims information in the custody or control of the third party administrator, agent, attorney, or other representative of the insolvent insurer, regardless of where the information may be physically located. In bringing the action, the association is not subject to any defense, lien, possessory or otherwise, or other legal or equitable ground for refusal to surrender claims information that might be asserted against the liquidator of the insolvent insurers. If litigation is necessary for the association to obtain custody of the claims information requested and it results in the relinquishment of claims information to the association after refusal to provide the information in response to a written demand, the court shall award the association its costs, expenses, and reasonable attorney fees incurred in bringing the action. This section does not affect the rights and remedies that the custodian of the claims information may have against the insolvent insurers, so long as those rights and remedies do not conflict with the rights of the association to custody and control of the claims information under this act.
(5) Upon request of the commissioner, consent of the association, and appointment by the court, the association may act as deputy receiver in delinquency proceedings under chapter 81.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980 ;-- Am. 2001, Act 182, Imd. Eff. Dec. 21, 2001 ;-- Am. 2006, Act 364, Imd. Eff. Sept. 18, 2006
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7921 - “Insolvent Insurer” and “Member Insurer” Defined.

500.7921 “Insolvent insurer” and “member insurer” defined.
Sec. 7921.
As used in this chapter:
(a) "Insolvent insurer" means an insurer which has been a member insurer and against whom a final order of liquidation has been entered with a finding of insolvency by a court of competent jurisdiction in the insurer's state of domicile. The date on which the order becomes final shall be the date on which all appeals of the finding of insolvency are exhausted. If the finding of insolvency in the order of liquidation is not appealed, the order of liquidation shall be considered final on the date the order was issued.
(b) "Member insurer" means an insurer required to be a member of the association pursuant to section 7911.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980 ;-- Am. 1989, Act 302, Imd. Eff. Jan. 3, 1990 ;-- Am. 1990, Act 137, Eff. June 29, 1990 ;-- Am. 1993, Act 200, Eff. Dec. 28, 1994 ;-- Am. 2006, Act 363, Imd. Eff. Sept. 18, 2006
Compiler's Notes:
Section 3 of Act 200 of 1993 provides as follows:“Section 3. This amendatory act shall not take effect unless the state administrative board certifies in writing to the secretary of state by December 31, 1994 that an agreement for the transfer of all or substantially all of the assets and the assumption of all or substantially all of the liabilities of the state accident fund has been consummated with a permitted transferee pursuant to the requirements of section 701a of the worker's disability compensation act of 1969, Act No. 317 of the Public Acts of 1969, being section 418.701a of the Michigan Compiled Laws.”
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7933 - Financial Condition of Member Insurer; Reports and Recommendations; Advice to Commissioner; Exemption From Public Disclosure.

500.7933 Financial condition of member insurer; reports and recommendations; advice to commissioner; exemption from public disclosure.
Sec. 7933.
(1) The association may submit reports and make recommendations to the commissioner regarding the financial condition of any member insurer. The reports and recommendations shall not be considered public documents.
(2) After the commissioner has entered an order restricting the certificate of authority of an insurer, the association shall render advice to the commissioner, upon his or her request, concerning rehabilitation, payment of claims, continuation of coverage, or the performance of other obligations of the insurer.
(3) Any reports, recommendations, and advice prepared in compliance with this section shall be exempt from public disclosure.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7935 - Cooperation of Insured With Association; Assignment of Rights; Indemnification From Catastrophic Claims Association; Options.

500.7935 Cooperation of insured with association; assignment of rights; indemnification from catastrophic claims association; options.
Sec. 7935.
(1) Each insured entitled to the protection of this chapter shall cooperate with the association in accordance with the insured's policy in the same manner as the insured would have been required to cooperate with his or her insurer if it were not in receivership. Each insured shall be considered to have assigned to the association any right to make claim against the receiver for a refund of unearned premium for the period of coverage provided by the association beginning on the date of receivership.
(2) An insured or claimant entitled to the benefits of this chapter shall be considered to have assigned to the association, to the extent of any payment received from the association, his or her rights against the estate of the insolvent insurer, rights under the policy under which his or her claim arose, and any other rights the insured or claimant may have against another person for payment of the covered claim paid by the association.
(3) The association shall be entitled to receive, to the extent of the amount paid or payable by the association by reason of a covered claim, any amount recoverable by the receiver or the insolvent insurer by way of right of indemnification from the catastrophic claims association created in section 3104.
(4) The association shall be entitled to any option to take possession of, right of salvage in, or other right to proceeds from the sale or disposition of insured property which is the subject matter of a covered claim, to which the insolvent insurer would have been entitled had it paid the claim.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7945 - Stay of Proceedings.

500.7945 Stay of proceedings.
Sec. 7945.
(1) All proceedings in any court of law of this state to which the insolvent insurer is a party, or in which the insolvent insurer is obligated to defend or has assumed the defense of a party, shall be stayed for 6 months after the date a receiver is appointed, and for any additional time as determined by the court that has jurisdiction over those proceedings, to permit proper defense of all pending causes of action.
(2) All proceedings in any administrative tribunal, including worker's compensation proceedings, to which the insolvent insurer is a party, or in which the insolvent insurer is obligated to defend or has assumed the defense of a party, shall be stayed for such length of time after the date a receiver is appointed, as determined by the administrative tribunal that has jurisdiction over those proceedings. The administrative tribunal shall grant a stay for each affected proceeding, as necessary, to provide the association with sufficient time to prepare a proper defense in the proceeding.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980 ;-- Am. 2006, Act 359, Imd. Eff. Sept. 18, 2006
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7947 - Tax Exemption.

500.7947 Tax exemption.
Sec. 7947.
The association shall be exempt from all license fees, income, franchise, privilege or occupation taxes levied or assessed by this state, any municipality, county or other political subdivision of the state, except state, county or municipal taxes upon the real or personal property of the association, which is to be assessed and taxed in the same manner as real property and personal property of other nonexempt persons.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7948 - Liability.

500.7948 Liability.
Sec. 7948.
There shall not be liability on the part of and a cause of action of any nature shall not arise against any member insurer, the association, agents or employees of the association, the board of governors, or the commissioner or representatives of the commissioner for any action taken by them in the exercise of their powers and performance of their duties under this chapter.
History:
Add. 1980, Act 41, Imd. Eff. Mar. 17, 1980
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) › 218-1956-79 - Chapter 79 Property and Casualty Guaranty Association (500.7901...500.7949) › Section 500.7949 - Insurance Commissioner; Regulatory Powers; Visitation; Examination; Hearings.

500.7949 Insurance commissioner; regulatory powers; visitation; examination; hearings.
Sec. 7949.
(1) The operation of the association at all times shall be subject to the regulation of the commissioner. The commissioner, or any deputy or examiner, or any person whom the commissioner appoints, shall have the power of visitation and examination into the affairs of the association and free access to all books, papers and documents that relate to the business of the association, may summon and qualify witnesses under oath, and may examine officers, agents or employees or any other person having knowledge of the affairs, transactions or conditions of the association.
(2) Any member insurer aggrieved by any action or decision of the association may appeal to the commissioner within 30 days from the action or decision. Proceedings under this section are subject to the provisions of Act No. 197 of the Public Acts of 1952, as amended, being sections 24.101 to 24.110 of the Compiled Laws of 1948.
History:
Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969
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) › 218-1956-80 - Chapter 80 Fraternal Benefit Societies (500.8000...500.8095) › Section 500.8000-500.8095 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970;—1990, Act 1, Eff. Apr. 1, 1990.

500.8000-500.8095 Repealed. 1969, Act 318, Eff. Mar. 20, 1970;—1990, Act 1, Eff. Apr. 1, 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) › 218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160) › Section 500.8101 - Construction and Purpose of Chapter.

500.8101 Construction and purpose of chapter.
Sec. 8101.
(1) This chapter shall not be interpreted to limit the powers granted the commissioner by other provisions of this code.
(2) This chapter shall be liberally construed to effect the purpose stated in subsection (3).
(3) The purpose of this chapter is the protection of the interests of insureds, claimants, creditors, and the public with minimum interference with the normal prerogatives of the owners and managers of insurers, through the following:
(a) Early detection of potentially dangerous conditions in an insurer and prompt application of appropriate corrective measures.
(b) Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry.
(c) Enhanced efficiency and economy of liquidation to minimize legal uncertainty and litigation.
(d) Equitable apportionment of unavoidable loss.
(e) Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process and by extending the scope of personal jurisdiction over debtors of the insurer outside this state.
(f) Regulation of the insurance business relating to delinquency procedures and rules on the entire insurance business.
(4) This chapter does not apply to insurers that are subject to delinquency proceedings commenced prior to January 1, 1990. Delinquency proceedings commenced prior to January 1, 1990, shall be conducted pursuant to former chapter 78.
History:
Add. 1989, Act 302, Imd. Eff. Jan. 3, 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) › 218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160) › Section 500.8102 - Applicability of Proceedings Authorized by Chapter.

500.8102 Applicability of proceedings authorized by chapter.
Sec. 8102.
The proceedings authorized by this chapter may be applied to:
(a) An insurer who is transacting, or has transacted, insurance business in this state, and against whom claims arising from that business may exist now or in the future.
(b) An insurer who purports to transact an insurance business in this state.
(c) An insurer who has insureds resident in this state.
(d) All other persons organized or in the process of organizing with the intent to transact an insurance business in this state.
History:
Add. 1989, Act 302, Imd. Eff. Jan. 3, 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) › 218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160) › Section 500.8104 - Commencement of Delinquency Proceeding; Jurisdiction; Stay of Proceedings.

500.8104 Commencement of delinquency proceeding; jurisdiction; stay of proceedings.
Sec. 8104.
(1) A delinquency proceeding shall not be commenced under this chapter by anyone other than the commissioner of this state and a court shall not have jurisdiction to entertain, hear, or determine a proceeding commenced by any other person.
(2) A court of this state shall not have jurisdiction to entertain, hear, or determine a complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation, or receivership of an insurer; or praying for an injunction or restraining order or other relief preliminary to, incidental to, or relating to such proceedings other than in accordance with this chapter.
(3) The circuit court for Ingham county shall have sole jurisdiction of a delinquency proceeding commenced under this chapter. In addition to other grounds for jurisdiction provided by the law of this state, the circuit court for Ingham county shall also have jurisdiction over a person served pursuant to the applicable provisions of law in an action brought by the receiver of a domestic insurer or an alien insurer domiciled in this state, if any of the following apply:
(a) The person served is obligated to the insurer as incident to an agency or brokerage arrangement that may exist or has existed between the insurer and the agent or broker, in an action on or incident to the obligation.
(b) The person served is a reinsurer who has at any time written a policy of reinsurance for an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced, or is an agent or broker of or for the reinsurer, in an action on or incident to the reinsurance contract.
(c) The person served is or has been an officer, manager, trustee, organizer, promoter, or person in a position of comparable authority or influence on an insurer against which a rehabilitation or liquidation order is in effect when the action is commenced, in an action resulting from such a relationship with the insurer.
(4) If the court on motion of any party finds that any action should as a matter of substantial justice be tried in a forum outside this state, the court may enter an appropriate order to stay further proceedings on the action in this state.
History:
Add. 1989, Act 302, Imd. Eff. Jan. 3, 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) › 218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160) › Section 500.8105 - Receiver; Application for Relief.

500.8105 Receiver; application for relief.
Sec. 8105.
(1) A receiver appointed in a proceeding under this chapter may at any time apply for, and the circuit court for Ingham county may grant, a restraining order, preliminary injunction, permanent injunction, and any other order as may be considered necessary and proper to prevent any of the following:
(a) The transaction of further business by the insurer.
(b) The transfer of property.
(c) Interference with the receiver or with a proceeding under this chapter.
(d) Waste of the insurer's assets.
(e) Dissipation and transfer of bank accounts.
(f) The institution or further prosecution of any actions or proceedings.
(g) The obtaining of preferences, judgments, attachments, garnishments, or liens against the insurer, its assets, or its policyholders.
(h) The levying of execution against the insurer, its assets, or its policyholders.
(i) The making of a sale or deed for nonpayment of taxes or assessments that would lessen the value of the insurer's assets.
(j) The withholding from the receiver of books, accounts, documents, or other records relating to the insurer's business.
(k) Other threatened or contemplated action that might lessen the value of the insurer's assets or prejudice the rights of policyholders, creditors, or shareholders, or the administration of a proceeding under this chapter.
(2) The receiver may apply to a court outside of the state for the relief described in subsection (1).
History:
Add. 1989, Act 302, Imd. Eff. Jan. 3, 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) › 218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160) › Section 500.8107 - Official Bonds.

500.8107 Official bonds.
Sec. 8107.
In a proceeding under this chapter, the commissioner and his or her deputies shall be responsible on their official bonds for the faithful performance of their duties. If the court considers it desirable for the protection of the assets, the court may at any time require an additional bond from the commissioner or his or her deputies, and the bond shall be paid for out of the assets of the insurer as a cost of administration.
History:
Add. 1989, Act 302, Imd. Eff. Jan. 3, 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) › 218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160) › Section 500.8108a - Prohibited Conduct by Insurer.

500.8108a Prohibited conduct by insurer.
Sec. 8108a.
Until all payments of or on account of the insurer's contractual obligations by all guaranty associations and all expenses and interest on the payments and expenses are repaid to the guaranty associations or a plan of repayment by the insurer is approved by the guaranty associations, an insurer that is subject to any delinquency proceedings, whether formal or informal, administrative or judicial, shall not:
(a) Be released from the proceeding, unless the proceeding is converted into a judicial rehabilitation or liquidation proceeding.
(b) Be permitted to solicit or accept new business or request or accept the restoration of a suspended or revoked license or certificate of authority.
(c) Be returned to the control of its shareholders or private management.
(d) Have its assets returned to the control of its shareholders or private management.
History:
Add. 1989, Act 302, Imd. Eff. Jan. 3, 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) › 218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160) › Section 500.8111 - Confidentiality; Exception; “Third Parties” Defined.

500.8111 Confidentiality; exception; “third parties” defined.
Sec. 8111.
(1) Except as provided in subsection (2), in all proceedings and judicial review of these proceedings under sections 8109 and 8110, all records of the insurer, other documents, office of financial and insurance services files, and court records and papers, so far as they pertain to or are a part of the record of the proceedings, are confidential and shall be held by the clerk of the court in a confidential file except as is necessary to obtain compliance therewith, unless the court, after hearing arguments from the parties in chambers, orders otherwise or the insurer requests that the matter be made public.
(2) Without compromising the confidentiality of the records of the commissioner, office of financial and insurance services, or supervisor, the commissioner or his or her supervisor may advise third parties of the existence of a supervision order and of the supervisor's authority if considered by either of them necessary to further the insurer's compliance with the supervision order. The commissioner may advise third parties of the existence of a supervision order and of facts pertaining to the supervision order if considered necessary by the commissioner with regard to other regulatory matters affecting the insurer or a person or entity related to the insurer. Third parties advised under this subsection are required to keep the existence of a supervision confidential. As used in this subsection, "third parties" means the following persons:
(a) Debtors and creditors of the insurer and its affiliates.
(b) Persons who hold or control assets of the insurer and its affiliates.
(c) Reinsurers of the insurer and its affiliates.
(d) Insurance regulatory officials.
(e) Law enforcement agencies.
(f) The workers' compensation agency.
(g) Representatives of a guaranty association or foreign guaranty association that may become obligated as a result of the insolvency of the insurer. Confidentiality obligations of a guaranty association or foreign guaranty association to the receiver end upon the entry of an order of liquidation with a finding of insolvency against the insurer.
History:
Add. 1989, Act 302, Imd. Eff. Jan. 3, 1990 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992 ;-- Am. 2006, Act 358, Imd. Eff. Sept. 18, 2006
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) › 218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160) › Section 500.8113 - Order to Rehabilitate Insurer; Provisions; Filing as Notice; Title to Assets Vested in Rehabilitator; Accounting.

500.8113 Order to rehabilitate insurer; provisions; filing as notice; title to assets vested in rehabilitator; accounting.
Sec. 8113.
(1) An order to rehabilitate the business of a domestic insurer, or an alien insurer domiciled in this state, shall appoint the commissioner and his or her successors in office as the rehabilitator, and shall direct the rehabilitator to take immediate possession of the assets of the insurer, and to administer them under the court's general supervision. The filing or recording of the order with the clerk of the circuit court or register of deeds for the county in which the principal business of the company is conducted, or the county in which its principal office or place of business is located, shall impart the same notice as a deed, bill of sale, or other evidence of title duly filed or recorded with that register of deeds would have imparted. The order to rehabilitate the insurer shall by operation of law vest title to all assets of the insurer in the rehabilitator.
(2) An order issued under this section shall require accounting to the court by the rehabilitator. Accountings shall be at such intervals as the court specifies in the order.
(3) Entry of an order of rehabilitation shall not constitute an anticipatory breach of any insurer contracts.
History:
Add. 1989, Act 302, Imd. Eff. Jan. 3, 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) › 218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160) › Section 500.8115 - Stay of Action or Proceeding; Purpose; Duties of Rehabilitator; Statute of Limitations; Laches; Standing of Guaranty Association.

500.8115 Stay of action or proceeding; purpose; duties of rehabilitator; statute of limitations; laches; standing of guaranty association.
Sec. 8115.
(1) A court in this state before which an action or proceeding in which the insurer is a party, or is obligated to defend a party, is pending when a rehabilitation order against the insurer is entered shall stay the action or proceeding for 90 days and such additional time as is necessary for the rehabilitator to obtain proper representation and prepare for further proceedings. The rehabilitator shall take action respecting the pending litigation as he or she considers necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall consider immediately all litigation pending outside this state and shall petition the courts having jurisdiction over that litigation for stays if necessary to protect the insurer's estate.
(2) A statute of limitations or defense of laches shall not run with respect to an action by or against an insurer between the filing of a petition for appointment of a rehabilitator for that insurer and the order granting or denying that petition. An action by or against the insurer that might have been commenced when the petition was filed may be commenced for at least 60 days after the order of rehabilitation is entered or the petition is denied.
(3) A guaranty association or foreign guaranty association covering life or health insurance or annuities shall have standing to appear in a court proceeding concerning the rehabilitation of a life or health insurer if the association is or may become liable to act as a result of the rehabilitation.
History:
Add. 1989, Act 302, Imd. Eff. Jan. 3, 1990
Popular Name:
Act 218