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1 chapters · 1,672 sections in this title.
Mich. Comp. Laws § 500.100 Insurance code of 1956; short title.
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Sec. 100. This act shall be known and may be cited as "the insurance code of 1956".
Mich. Comp. Laws § 500.1001 Definitions.
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Sec. 1001. As used in this chapter: (a) "Audited financial report" means the report required in section 1005 and furnished under section 1007. (b) "Audit committee" means a committee or equivalent body established by the board of directors of an entity to oversee the accounting a…
Mich. Comp. Laws § 500.1003 Nonapplicability of chapter.
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Sec. 1003. (1) This chapter does not apply to any of the following: (a) Insurers having direct premiums written in this state of less than $1,000,000.00 in any year and having less than 1,000 policyholders in this state at the end of any year unless the commissioner makes a speci…
Mich. Comp. Laws § 500.1005 Insurer; annual audit; filing date; extensions; designation of audit committee.
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Sec. 1005. (1) Each insurer authorized to do business in this state shall have an annual audit by an independent public accountant and shall file an audited financial report with the commissioner on or before June 1 for the immediately preceding calendar year. With 90 days' advan…
Mich. Comp. Laws § 500.1007 Annual audited financial report; contents; form; conduct of examination by independent public accountant.
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Sec. 1007. (1) The annual audited financial report shall report the insurer's financial condition as of the end of the most recent calendar year and the results of its operations, cash flows, and changes in capital and surplus for the year then ended in conformity with accounting…
Mich. Comp. Laws § 500.1009 Insurer required to file annual audited report; registration of insurer's independent public accountant; letter required; dismissal or resignation of independent public accountant; notice; report of disagreement; responsive letter.
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Sec. 1009. (1) Each insurer required by this chapter to file an annual audited financial report shall register with the commissioner in writing, within 60 days after becoming subject to this requirement, the name and address of the independent public accountant or accounting firm…
Mich. Comp. Laws § 500.1010 Recognition of person or firm as independent public accountant; mediation or arbitration of disputes; limitation on period of service; relief from rotation requirement; restrictions; hearing; ruling by commissioner; exemption from subsection (7); nonaudit services; preapproval; waiver; independent public accountant not recognized as qualified; condition; relief from subsection (14).
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Sec. 1010. (1) The commissioner shall not recognize a person or firm as an independent public accountant unless that person or firm meets both of the following: (a) Is in good standing with the American institute of certified public accountants and in good standing in all states …
Mich. Comp. Laws § 500.1011 Audited consolidated or combined financial statements; application for filing; work sheet.
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Sec. 1011. An insurer may make written application to the commissioner for approval to file audited consolidated or combined financial statements in lieu of separate annual audited financial statements if the insurer is part of a group of affiliates that uses a pooling or 100% re…
Mich. Comp. Laws § 500.1015 Independent public accountant; reporting determination that insurer materially misstated financial condition or does not meet requirements of MCL 500.408 or MCL 500.410; liability; action to be taken after date of audited financial report.
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Sec. 1015. (1) An insurer required to furnish the annual audited financial report shall require the independent public accountant to report in writing within 5 business days to the board of directors or its audit committee any determination by that independent public accountant t…
Mich. Comp. Laws § 500.1017 Independent public accountant; communicating unremediated material weaknesses; description.
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Sec. 1017. (1) In addition to the annual audited financial report, each insurer shall furnish the commissioner with a written communication as to any unremediated material weaknesses in the insurer's internal controls over financial reporting noted during the audit. This communic…
Mich. Comp. Laws § 500.1019 Independent public accountant; filing letter with annual audited financial report; contents.
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Sec. 1019. The independent public accountant shall furnish the insurer in connection with, and for inclusion in, the filing of the annual audited financial report, a letter stating all of the following: (a) That the independent public accountant is independent of the insurer and …
Mich. Comp. Laws § 500.102 Definitions.
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Sec. 102. As used in this act: (a) "Commissioner" means the director. (b) "Department" means the department of insurance and financial services. (c) "Director" means, unless the context clearly implies a different meaning, the director of the department. (d) "Office of financial …
Mich. Comp. Laws § 500.1021 Work papers; availability; retention; review as investigation; use.
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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…
Mich. Comp. Laws § 500.1023 Compliance with chapter; exemption; filing reports on other than calendar year basis; compliance by domestic insurers; schedule; compliance by foreign insurers.
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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 upo…
Mich. Comp. Laws § 500.1025 Canadian and British insurers; annual audited financial report; contents of independent public accountant's letter.
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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 ins…
Mich. Comp. Laws § 500.1027 Applicability of section to domestic insurer not SOX compliant entity; duties of audit committee; member of audit committee as independent; election of controlling person; report by accountant; reports provided on aggregate basis; structure of audit committee; waiver from section based on hardship; effective date of section; "direct written and assumed premiums" defined.
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Sec. 1027. (1) This section applies to a domestic insurer that is not a SOX compliant entity. A domestic insurer that is a direct or indirect subsidiary of a SOX compliant entity is considered to be a SOX compliant entity for purposes of this section. (2) The audit committee is d…
Mich. Comp. Laws § 500.1028 Internal audit function; exemption; confidentiality; report to audit committee.
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Sec. 1028. (1) An insurer is exempt from the requirements of this section if the insurer has annual direct written and unaffiliated assumed premium, including international direct and assumed premium but excluding premiums reinsured with the Federal Crop Insurance Corporation and…
Mich. Comp. Laws § 500.1029 Director or officer of insurer; prohibited conduct.
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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 chap…
Mich. Comp. Laws § 500.103 “Revenue commissioner” defined.
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Sec. 103. As used in this code, "revenue commissioner" means the state commissioner of revenue appointed under Act No. 122 of the Public Acts of 1941, being sections 205.1 to 205.31 of the Michigan Compiled Laws.
Mich. Comp. Laws § 500.1031 Report of insurer's or group of insurers' internal control over financial reporting; requirements.
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Sec. 1031. (1) Every insurer required to file an audited financial report pursuant to this chapter that has annual direct written and assumed premiums, excluding premiums reinsured with the federal crop insurance corporation and federal flood program, of $500,000,000.00 or more s…
Mich. Comp. Laws § 500.1033 Exemption from any or all provisions of chapter.
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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 orga…
Mich. Comp. Laws § 500.106 "Health maintenance organization" and "insurer" defined.
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Sec. 106. As used in this act: (a) "Health maintenance organization" means that term as defined in section 3501. (b) "Insurer" means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other …
Mich. Comp. Laws § 500.108 Authorized, unauthorized insurer; definitions.
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Sec. 108. As used in this code: (1) "Authorized" insurer means an insurer duly authorized, by a subsisting certificate of authority issued by the commissioner, to transact insurance in this state. (2) "Unauthorized" insurer means an insurer not so authorized to transact insurance…
Mich. Comp. Laws § 500.110 Domestic, foreign, alien; definitions.
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Sec. 110. As used in this code: (1) "Domestic" insurer means an insurer formed under the laws of this state. (2) "Foreign" insurer means an insurer formed under the laws of the District of Columbia, or some state, commonwealth, territory, or possession of the United States of Ame…
Mich. Comp. Laws § 500.1101 “Qualified United States financial institution” defined.
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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 t…
Mich. Comp. Laws § 500.1103 Credit for reinsurance as asset or reduction from liability; accredited reinsurer; trust fund; requirements; report to director; certified reinsurer requirements; obligation to arbitrate; trust agreement; list of reciprocal jurisdictions; suspension or revocation; hearing; recoverable assets; diversification; member of catastrophic claims association; definitions.
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Sec. 1103. (1) A ceding insurer is allowed credit for reinsurance as either an asset or a reduction from liability on account of reinsurance ceded only if the reinsurance is ceded to an assuming insurer that is authorized to transact insurance or reinsurance in this state or that…
Mich. Comp. Laws § 500.1105 Reduction from liability by ceding insurer to assuming insurer not meeting requirements of MCL 500.1103; security.
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Sec. 1105. An asset or a reduction from liability for the reinsurance ceded by a ceding insurer to an assuming insurer that does not meet the requirements of section 1103 is allowed in an amount not to exceed the liabilities carried by the ceding insurer. In addition, any asset o…
Mich. Comp. Laws § 500.1106 Rules.
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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 g…
Mich. Comp. Laws § 500.1121 Applicability of MCL 500.1123 to 500.1127 to certain insurers.
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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, year…
Mich. Comp. Laws § 500.1123 Reinsurance agreement; conditions prohibiting reduction in liability or establishment of asset; approval of commissioner; filing agreements.
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Sec. 1123. (1) For reinsurance ceded an insurer subject to this section shall not reduce any liability or establish any asset in any financial agreement filed with the commissioner if, by the terms of the reinsurance agreement, in substance or effect, any of the following conditi…
Mich. Comp. Laws § 500.1125 Reinsurance agreement; use; execution; “reasonable period of time” defined; provisions; assumption of obligations by life and health insurance guaranty association.
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Sec. 1125. (1) Neither a reinsurance agreement nor any amendment to that agreement shall be used to reduce any liability or to establish any asset in any financial statement filed with the commissioner unless the agreement, amendment, or a binding letter of intent has been duly e…
Mich. Comp. Laws § 500.1127 Reinsurance agreements; reduction to zero of certain reserve credits or assets.
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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…
Mich. Comp. Laws § 500.114 Person; definition.
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Sec. 114. "Person" as used in this code includes an individual, insurer, company, association, organization, Lloyds, society, reciprocal or inter-insurance exchange, partnership, syndicate, business trust, corporation, and any other legal entity.
Mich. Comp. Laws § 500.115 Definitions.
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Sec. 115. As used in this act unless the context clearly indicates otherwise: (a) "Affiliate" or a person "affiliated" with a specific person means a person that directly, or indirectly through 1 or more intermediaries, controls, is controlled by, or is under common control with …
Mich. Comp. Laws § 500.1151 Definitions.
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Sec. 1151. As used in this chapter: (a) "Actuary" means a person who is a member in good standing of the American academy of actuaries, the society of actuaries, or the casualty actuarial society. (b) "Qualified United States Financial institution" means an institution that meets…
Mich. Comp. Laws § 500.1153 Person acting as reinsurance intermediary-broker; bond; license; nonresident; service of process; refusal to issue license.
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Sec. 1153. (1) A person shall not act as a reinsurance intermediary-broker in this state if the reinsurance intermediary-broker, either directly or as a member or employee of a firm or association, or as an officer, director, or employee of a corporation, does either of the follo…
Mich. Comp. Laws § 500.1155 Transactions between reinsurance intermediary-broker and insurer; authorization.
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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 o…
Mich. Comp. Laws § 500.1157 Record of transaction.
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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 r…
Mich. Comp. Laws § 500.1159 Person acting as reinsurance-broker; license required; employment of individual employed by reinsurance intermediary-broker; annual copy of statements of financial condition.
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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-bro…
Mich. Comp. Laws § 500.116 Additional definitions.
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Sec. 116. As used in this act: (a) "Enrollee" means an individual who is entitled to receive health services under a health insurance contract, unless the context requires otherwise. (b) "Hazardous to policyholders, creditors, and the public" means that an insurer, with respect t…
Mich. Comp. Laws § 500.1161 Transactions between reinsurance intermediary-manager and reinsurer; contract.
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Sec. 1161. Transactions between a reinsurance intermediary-manager and the reinsurer it represents in such capacity shall only be entered into pursuant to a written contract, specifying the responsibilities of each party, which shall be approved by the reinsurer's board of direct…
Mich. Comp. Laws § 500.1163 Reinsurance intermediary-manager; prohibited conduct.
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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 wi…
Mich. Comp. Laws § 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.
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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 …
Mich. Comp. Laws § 500.1167 Reinsurance intermediary and reinsurance intermediary-manager; examination of books, bank accounts, and records.
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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 …
Mich. Comp. Laws § 500.1169 Violation; penalties.
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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 sectio…
Mich. Comp. Laws § 500.1171 Reinsurance intermediary; use of services.
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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.
Mich. Comp. Laws § 500.118 Treatment of alien insurer as foreign insurer.
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Sec. 118. If an alien insurer is domiciled in a country other than the United States that has an agreement with the United States whereby each agrees to treat insurers domiciled in the other country the same as insurers domiciled in its own country, the alien insurer may apply fo…
Mich. Comp. Laws § 500.120 Insurance, surety, or health maintenance organization transactions; compliance with act.
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Sec. 120. A person shall not transact an insurance, surety, or health maintenance organization business in this state, or relative to a subject resident, located or to be performed in this state, without complying with the applicable provisions of this act.
Mich. Comp. Laws § 500.1200 “Good moral character” defined.
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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.
Mich. Comp. Laws § 500.1201 Definitions.
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Sec. 1201. As used in this chapter: (a) "Agent" except as provided in section 1243 means an insurance producer. (b) "Agent of the insured" means an insurance producer who is not an appointed insurance producer of the insurer with which the insurance policy is placed. An agent of …