MCL - Act 218 of 1956


THE INSURANCE CODE OF 1956

Act 218 of 1956

AN ACT to revise, consolidate, and classify the laws relating to the insurance and surety business; to regulate the incorporation or formation of domestic insurance and surety companies and associations and the admission of foreign and alien companies and associations; to provide their rights, powers, and immunities and to prescribe the conditions on which companies and associations organized, existing, or authorized under this act may exercise their powers; to provide the rights, powers, and immunities and to prescribe the conditions on which other persons, firms, corporations, associations, risk retention groups, and purchasing groups engaged in an insurance or surety business may exercise their powers; to provide for the imposition of a privilege fee on domestic insurance companies and associations and the state accident fund; to provide for the imposition of a tax on the business of foreign and alien companies and associations; to provide for the imposition of a tax on risk retention groups and purchasing groups; to provide for the imposition of a tax on the business of surplus line agents; to provide for the imposition of regulatory fees on certain insurers; to provide for assessment fees on certain health maintenance organizations; to modify tort liability arising out of certain accidents; to provide for limited actions with respect to that modified tort liability and to prescribe certain procedures for maintaining those actions; to require security for losses arising out of certain accidents; to provide for the continued availability and affordability of automobile insurance and homeowners insurance in this state and to facilitate the purchase of that insurance by all residents of this state at fair and reasonable rates; to provide for certain reporting with respect to insurance and with respect to certain claims against uninsured or self-insured persons; to prescribe duties for certain state departments and officers with respect to that reporting; to provide for certain assessments; to establish and continue certain state insurance funds; to modify and clarify the status, rights, powers, duties, and operations of the nonprofit malpractice insurance fund; to provide for the departmental supervision and regulation of the insurance and surety business within this state; to provide for regulation over worker's compensation self-insurers; to provide for the conservation, rehabilitation, or liquidation of unsound or insolvent insurers; to provide for the protection of policyholders, claimants, and creditors of unsound or insolvent insurers; to provide for associations of insurers to protect policyholders and claimants in the event of insurer insolvencies; to prescribe educational requirements for insurance agents and solicitors; to provide for the regulation of multiple employer welfare arrangements; to create an automobile theft prevention authority to reduce the number of automobile thefts in this state; to prescribe the powers and duties of the automobile theft prevention authority; to provide certain powers and duties upon certain officials, departments, and authorities of this state; to provide for an appropriation; to repeal acts and parts of acts; and to provide penalties for the violation of this act.


History: 1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1972, Act 294, Eff. Mar. 30, 1973 ;-- Am. 1977, Act 42, Imd. Eff. June 28, 1977 ;-- Am. 1979, Act 145, Imd. Eff. Nov. 13, 1979 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980 ;-- Am. 1982, Act 194, Imd. Eff. June 28, 1982 ;-- Am. 1986, Act 10, Imd. Eff. Feb. 28, 1986 ;-- Am. 1986, Act 121, Imd. Eff. May 28, 1986 ;-- Am. 1986, Act 173, Imd. Eff. July 7, 1986 ;-- Am. 1989, Act 214, Eff. Jan. 1, 1990 ;-- Am. 1991, Act 24, Imd. Eff. May 20, 1991 ;-- Am. 1994, Act 228, Imd. Eff. June 30, 1994 ;-- Am. 1998, Act 457, Imd. Eff. Jan. 4, 1999 ;-- Am. 2002, Act 304, Imd. Eff. May 10, 2002
Compiler's Notes: Act 143 of 1993, which amended this act, 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.For transfer of the Department of Insurance and Office of the Commissioner on Insurance from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.For transfer of authority, powers, duties, functions, and responsibilities of the insurance bureau and the commissioner of insurance to the commissioner of the office of financial and insurance services and the office of financial and insurance services, see E.R.O. No. 2000-2, compiled MCL 445.2003 of the Michigan compiled laws.
Popular Name: Act 218




The People of the State of Michigan enact:
Document Type Description
218-1956-1 Division CHAPTER 1 SCOPE OF CODE (500.100...500.150)
218-1956-2 Division CHAPTER 2 THE INSURANCE COMMISSIONER (500.200...500.271)
218-1956-4 Division CHAPTER 4 AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS (500.402...500.480)
218-1956-5 Division CHAPTER 5 PRIVACY OF FINANCIAL INFORMATION (500.501...500.547)
218-1956-5A Division CHAPTER 5A DATA SECURITY (500.550...500.565)
218-1956-6 Division CHAPTER 6 KINDS OF INSURANCE; REINSURANCE; LIMIT OF RISK (500.600...500.644)
218-1956-7 Division CHAPTER 7 RESERVE STANDARDS FOR DISABILITY INSURANCE (500.701...500.737)
218-1956-8 Division CHAPTER 8 ASSETS AND LIABILITIES (500.808...500.842)
218-1956-9 Division CHAPTER 9 INVESTMENTS (500.900...500.960)
218-1956-10 Division CHAPTER 10 ANNUAL AUDITED FINANCIAL REPORTS (500.1001...500.1033)
218-1956-11 Division CHAPTER 11 REINSURANCE (500.1101...500.1127)
218-1956-11A Division CHAPTER 11A REINSURANCE INTERMEDIARIES (500.1151...500.1171)
218-1956-12 Division CHAPTER 12 AGENTS, SOLICITORS, ADJUSTERS, AND COUNSELORS (500.1200...500.1247)
218-1956-12A Division CHAPTER 12A (500.1261...500.1272)
218-1956-12B Division CHAPTER 12B TRAVEL INSURANCE (500.1281...500.1291)
218-1956-13 Division CHAPTER 13 HOLDING COMPANIES (500.1301...500.1379)
218-1956-14 Division CHAPTER 14 MANAGING GENERAL AGENTS (500.1400...500.1450)
218-1956-14a Division CHAPTER 14a PRODUCER CONTROLLED INSURERS (500.1451...500.1474)
218-1956-15 Division CHAPTER 15 INSURANCE PREMIUM FINANCE COMPANIES (500.1501...500.1514)
218-1956-16. Division CHAPTER 16. Creditor-Placed Insurance (500.1601...500.1631)
218-1956-17 Division CHAPTER 17 RISK MANAGEMENT AND OWN RISK AND SOLVENCY ASSESSMENT (500.1701...500.1715)
218-1956-17A Division CHAPTER 17A CORPORATE GOVERNANCE ANNUAL DISCLOSURE (500.1751...500.1767)
218-1956-18 Division CHAPTER 18 (500.1801...500.1864)
218-1956-19 Division CHAPTER 19 (500.1901...500.1955)
218-1956-20 Division CHAPTER 20 UNFAIR AND PROHIBITED TRADE PRACTICES AND FRAUDS (500.2001...500.2093)
218-1956-21 Division CHAPTER 21 (500.2101...500.2138)
218-1956-21a Division CHAPTER 21a CREDIT INFORMATION AND CREDIT SCORES (500.2151...500.2162)
218-1956-22 Division CHAPTER 22 THE INSURANCE CONTRACT (500.2204...500.2266)
218-1956-22A Division CHAPTER 22A (500.2270...500.2277)
218-1956-23 Division CHAPTER 23 WORKER'S COMPENSATION INSURANCE RATES (500.2301...500.2352)
218-1956-24 Division CHAPTER 24 CASUALTY INSURANCE RATES (500.2400...500.2484)
218-1956-25 Division CHAPTER 25 BROWN-McNEELY INSURANCE FUND (500.2500...500.2517)
218-1956-26 Division CHAPTER 26 FIRE AND INLAND MARINE RATES (500.2600...500.2674)
218-1956-27 Division CHAPTER 27 LEGAL EXPENSE INSURANCE (500.2700...500.2706)
218-1956-28 Division CHAPTER 28 FIRE INSURANCE CONTRACTS (500.2804...500.2866)
218-1956-29 Division CHAPTER 29 BASIC PROPERTY INSURANCE (500.2901...500.2954)
218-1956-30 Division CHAPTER 30 CASUALTY INSURANCE CONTRACTS (500.3004...500.3037)
218-1956-30A Division CHAPTER 30A (500.3051...500.3062)
218-1956-31 Division CHAPTER 31 MOTOR VEHICLE PERSONAL AND PROPERTY PROTECTION (500.3101...500.3179)
218-1956-31A Division CHAPTER 31A MANAGED CARE (500.3181...500.3189)
218-1956-32 Division CHAPTER 32 CANCELLATION OF AUTOMOBILE LIABILITY POLICIES (500.3201...500.3262)
218-1956-33 Division CHAPTER 33 AUTOMOBILE INSURANCE PLACEMENT FACILITY (500.3301...500.3390)
218-1956-34 Division CHAPTER 34 DISABILITY INSURANCE POLICIES (500.3400...500.3480)
218-1956-35 Division CHAPTER 35 HEALTH MAINTENANCE ORGANIZATIONS (500.3501...500.3580)
218-1956-36 Division CHAPTER 36 GROUP AND BLANKET DISABILITY INSURANCE (500.3600...500.3650)
218-1956-37 Division CHAPTER 37 SMALL EMPLOYER GROUP HEALTH COVERAGE (500.3701...500.3728)
218-1956-38 Division CHAPTER 38 MEDICARE SUPPLEMENT POLICIES AND CERTIFICATES (500.3801...500.3861)
218-1956-39 Division CHAPTER 39 LONG-TERM CARE INSURANCE (500.3901...500.3955)
218-1956-39A Division CHAPTER 39A LONG-TERM CARE PARTNERSHIP PROGRAM INSURANCE (500.3957...500.3965)
218-1956-40 Division CHAPTER 40 LIFE INSURANCE POLICIES AND ANNUITY CONTRACT (OTHER THAN INDUSTRIAL OR GROUP) (500.4000...500.4073)
218-1956-41 Division CHAPTER 41 MODIFIED GUARANTEED ANNUITIES (500.4101...500.4127)
218-1956-41A Division CHAPTER 41A ANNUITY RECOMMENDATION TO CONSUMERS (500.4151...500.4166)
218-1956-42 Division CHAPTER 42 INDUSTRIAL LIFE INSURANCE (500.4200...500.4244)
218-1956-44 Division CHAPTER 44 GROUP LIFE INSURANCE (500.4400...500.4454)
218-1956-45 Division CHAPTER 45 INSURANCE FRAUD (500.4501...500.4511)
218-1956-46 Division CHAPTER 46 CAPTIVE INSURANCE COMPANIES (500.4601...500.4673)
218-1956-47 Division CHAPTER 47 SPECIAL PURPOSE FINANCIAL CAPTIVES (500.4701...500.4747)
218-1956-48 Division CHAPTER 48 PROTECTED CELL INSURANCE COMPANIES (500.4801...500.4813)
218-1956-50 Division CHAPTER 50 ORGANIZATION OF DOMESTIC STOCK AND MUTUAL INSURERS (500.5000...500.5040)
218-1956-51 Division CHAPTER 51 ORGANIZATION OF AN ACQUIRING INSURER FOR TRANSACTION OF CERTAIN TYPES OF INSURANCE (500.5100...500.5114)
218-1956-52 Division CHAPTER 52 CORPORATE POWERS, PROCEDURES OF STOCK AND MUTUAL INSURERS (500.5200...500.5290)
218-1956-54 Division CHAPTER 54 MUTUAL LIFE AND DISABILITY INSURERS (DOMESTIC) (500.5400...500.5430)
218-1956-55 Division CHAPTER 55 DOMESTIC STOCK INSURER DIVISION (500.5500...500.5517)
218-1956-58 Division CHAPTER 58 GENERAL MUTUAL INSURERS (DOMESTIC) (500.5800...500.5840)
218-1956-59 Division CHAPTER 59 CONVERSION OF DOMESTIC MUTUAL INSURER TO DOMESTIC STOCK INSURER (500.5901...500.5927)
218-1956-60 Division CHAPTER 60 Reorganization of Mutual Insurers (500.6001...500.6031)
218-1956-61 Division CHAPTER 61 AUTOMOBILE THEFT PREVENTION AUTHORITY (500.6101... 500.6125)
218-1956-62 Division CHAPTER 62 MUTUAL EMPLOYERS' LIABILITY INSURERS (DOMESTIC) (500.6200...500.6236)
218-1956-63 Division CHAPTER 63 ANTI-FRAUD UNIT (500.6301...500.6304)
218-1956-64 Division CHAPTER 64 COOPERATIVE PLAN INSURERS (DOMESTIC) (500.6400...500.6460)
218-1956-65 Division CHAPTER 65 LIMITED LIABILITY POOLS (500.6500...500.6550)
218-1956-66 Division CHAPTER 66 RAILWAY EMPLOYEES, AND LIFE, DISABILITY INSURERS (DOMESTIC, STOCK) (500.6600...500.6616)
218-1956-68 Division CHAPTER 68 FARMERS' AND OTHER SPECIAL MUTUAL PROPERTY INSURERS (DOMESTIC) (500.6800...500.6886)
218-1956-70 Division CHAPTER 70 MULTIPLE EMPLOYER WELFARE ARRANGEMENTS (500.7001...500.7090)
218-1956-72 Division CHAPTER 72 RECIPROCAL INSURANCE EXCHANGES (500.7200...500.7234)
218-1956-73 Division CHAPTER 73 TITLE INSURERS (500.7300...500.7318)
218-1956-76 Division CHAPTER 76 CONSOLIDATION OR MERGER OF DOMESTIC INSURERS (500.7604...500.7606)
218-1956-77 Division CHAPTER 77 (500.7701...500.7780)
218-1956-78 Division CHAPTER 78 LIQUIDATIONS AND RECEIVERSHIPS (500.7800...500.7868)
218-1956-79 Division CHAPTER 79 PROPERTY AND CASUALTY GUARANTY ASSOCIATION (500.7901...500.7949)
218-1956-80 Division CHAPTER 80 FRATERNAL BENEFIT SOCIETIES (500.8000...500.8095)
218-1956-81 Division CHAPTER 81 SUPERVISION, REHABILITATION, AND LIQUIDATION (500.8101...500.8160)
218-1956-81a Division CHAPTER 81a FRATERNAL BENEFIT SOCIETIES (500.8161...500.8199a)
218-1956-82 Division CHAPTER 82 TRANSFORMATION OF FRATERNAL BENEFIT SOCIETIES (500.8204...500.8254)
218-1956-83 Division CHAPTER 83 REPEALS, SAVING CLAUSE, EFFECTIVE DATE (500.8300...500.8302)