Insurance; other; required notices to be sent to office of

financial and insurance services for appointment or election of

new officers and directors; limit.

INSURANCE: Other; INSURANCE: Insurers; STATE AGENCIES

(EXISTING): Family independence agency

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending section 250 (MCL 500.250).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 250. (1) All insurers licensed to do business in this

2 state shall notify the commissioner within 30 days of the

3 appointment or election of any new officers or directors, or any

4 transfer of stock which THAT results in any one 1 person

5 holding 10% or more of the voting shares of an insurer. IN ADDI-

6 TION, A DOMESTIC INSURER SHALL NOTIFY THE COMMISSIONER WITHIN 30

7 DAYS OF THE APPOINTMENT OR ELECTION OF ANY NEW OFFICERS OR

8 DIRECTORS.

9 (2) If, after proceedings under section 249, the

10 commissioner has reason to believe that an officer or director is

11 untrustworthy or has abused his OR HER trust and that his

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1 continuation as an officer or director is hazardous or injurious

2 to the insurer, the policyholders, or the public, the commis-

3 sioner shall hold a hearing. thereon. After the hearing and

4 after written findings that the officer or director is untrust-

5 worthy or has abused his OR HER trust and that his continuation

6 as an officer or director is hazardous or injurious to the insur-

7 er, the policyholders, or the public, the commissioner may order

8 the removal of the officer or director.

9 (3) If the insurer does not comply with such A removal

10 order UNDER SUBSECTION (2) within 30 days, the commissioner may

11 suspend or revoke the insurer's certificate of authority until

12 such time as the insurer complies with the order.

13 (4) Any such action when UNDER THIS SECTION taken by an

14 insurer, its directors, or officers pursuant to an order of the

15 commissioner under this act shall be deemed CONSIDERED to be in

16 good faith and shall not be the basis for subjecting the insurer,

17 its directors, or officers to civil liabilities.

18 (5) Any order of the commissioner issued pursuant to UNDER

19 this section shall be IS subject to review as provided in sec-

20 tion 244.

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