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Act 218 of 1956
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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


© 2009 Legislative Council, State of Michigan

The People of the State of Michigan enact:

DocumentTypeDescription
218-1956-1DivisionCHAPTER 1 SCOPE OF CODE (500.100...500.150)
218-1956-2DivisionCHAPTER 2 THE INSURANCE COMMISSIONER (500.200...500.251)
218-1956-4DivisionCHAPTER 4 AUTHORIZATION OF INSURERS AND GENERAL REQUIREMENTS (500.402...500.480)
218-1956-5DivisionCHAPTER 5 PRIVACY OF FINANCIAL INFORMATION (500.501...500.547)
218-1956-6DivisionCHAPTER 6 KINDS OF INSURANCE; REINSURANCE; LIMIT OF RISK (500.600...500.644)
218-1956-7DivisionCHAPTER 7 RESERVE STANDARDS FOR DISABILITY INSURANCE (500.701...500.737)
218-1956-8DivisionCHAPTER 8 ASSETS AND LIABILITIES (500.808...500.842)
218-1956-9DivisionCHAPTER 9 INVESTMENTS (500.900...500.960)
218-1956-10DivisionCHAPTER 10 ANNUAL AUDITED FINANCIAL REPORTS (500.1001...500.1033)
218-1956-11DivisionCHAPTER 11 REINSURANCE (500.1101...500.1127)
218-1956-11ADivisionCHAPTER 11A REINSURANCE INTERMEDIARIES (500.1151...500.1171)
218-1956-12DivisionCHAPTER 12 AGENTS, SOLICITORS, ADJUSTERS, AND COUNSELORS (500.1200...500.1247)
218-1956-13DivisionCHAPTER 13 HOLDING COMPANIES (500.1301...500.1379)
218-1956-14DivisionCHAPTER 14 MANAGING GENERAL AGENTS (500.1400...500.1450)
218-1956-14ADivisionCHAPTER 14a PRODUCER CONTROLLED INSURERS (500.1451...500.1474)
218-1956-15DivisionCHAPTER 15 INSURANCE PREMIUM FINANCE COMPANIES (500.1501...500.1514)
218-1956-16.DivisionCHAPTER 16. Creditor-Placed Insurance (500.1601...500.1631)
218-1956-18DivisionCHAPTER 18 (500.1801...500.1864)
218-1956-19DivisionCHAPTER 19 (500.1901...500.1955)
218-1956-20DivisionCHAPTER 20 UNFAIR AND PROHIBITED TRADE PRACTICES AND FRAUDS (500.2001...500.2093)
218-1956-21DivisionCHAPTER 21 (500.2101...500.2138)
218-1956-21ADivisionCHAPTER 21a CREDIT INFORMATION AND CREDIT SCORES (500.2151...500.2161)
218-1956-22DivisionCHAPTER 22 THE INSURANCE CONTRACT (500.2204...500.2290)
218-1956-22ADivisionCHAPTER 22A (500.2270...500.2277)
218-1956-23DivisionCHAPTER 23 WORKER'S COMPENSATION INSURANCE RATES (500.2301...500.2352)
218-1956-24DivisionCHAPTER 24 CASUALTY INSURANCE RATES (500.2400...500.2484)
218-1956-25DivisionCHAPTER 25 BROWN-McNEELY INSURANCE FUND (500.2500...500.2517)
218-1956-26DivisionCHAPTER 26 FIRE AND INLAND MARINE RATES (500.2600...500.2674)
218-1956-27DivisionCHAPTER 27 LEGAL EXPENSE INSURANCE (500.2700...500.2706)
218-1956-28DivisionCHAPTER 28 FIRE INSURANCE CONTRACTS (500.2804...500.2866)
218-1956-29DivisionCHAPTER 29 BASIC PROPERTY INSURANCE (500.2901...500.2954)
218-1956-30DivisionCHAPTER 30 CASUALTY INSURANCE CONTRACTS (500.3004...500.3037)
218-1956-30ADivisionCHAPTER 30A (500.3051...500.3062)
218-1956-31DivisionCHAPTER 31 MOTOR VEHICLE PERSONAL AND PROPERTY PROTECTION (500.3101...500.3179)
218-1956-32DivisionCHAPTER 32 CANCELLATION OF AUTOMOBILE LIABILITY POLICIES (500.3201...500.3262)
218-1956-33DivisionCHAPTER 33 AUTOMOBILE INSURANCE PLACEMENT FACILITY (500.3301...500.3390)
218-1956-34DivisionCHAPTER 34 DISABILITY INSURANCE POLICIES (500.3400...500.3480)
218-1956-35DivisionCHAPTER 35 HEALTH MAINTENANCE ORGANIZATIONS (500.3501...500.3580)
218-1956-36DivisionCHAPTER 36 GROUP AND BLANKET DISABILITY INSURANCE (500.3600...500.3650)
218-1956-37DivisionCHAPTER 37 SMALL EMPLOYER GROUP HEALTH COVERAGE (500.3701...500.3728)
218-1956-38DivisionCHAPTER 38 MEDICARE SUPPLEMENT POLICIES AND CERTIFICATES (500.3801...500.3861)
218-1956-39DivisionCHAPTER 39 LONG-TERM CARE INSURANCE (500.3901...500.3955)
218-1956-40DivisionCHAPTER 40 LIFE INSURANCE POLICIES AND ANNUITY CONTRACT (OTHER THAN INDUSTRIAL OR GROUP) (500.4000...500.4073.amended)
218-1956-41DivisionCHAPTER 41 MODIFIED GUARANTEED ANNUITIES (500.4101...500.4127)
218-1956-41ADivisionCHAPTER 41A ANNUITY RECOMMENDATION TO CONSUMERS (500.4151...500.4165)
218-1956-42DivisionCHAPTER 42 INDUSTRIAL LIFE INSURANCE (500.4200...500.4244)
218-1956-44DivisionCHAPTER 44 GROUP LIFE INSURANCE (500.4400...500.4454)
218-1956-45DivisionCHAPTER 45 INSURANCE FRAUD (500.4501...500.4511)
218-1956-46DivisionCHAPTER 46 CAPTIVE INSURANCE COMPANIES (500.4601...500.4673)
218-1956-47DivisionCHAPTER 47 SPECIAL PURPOSE FINANCIAL CAPTIVES (500.4701...500.4747)
218-1956-48DivisionCHAPTER 48 PROTECTED CELL INSURANCE COMPANIES (500.4801...500.4813)
218-1956-50DivisionCHAPTER 50 ORGANIZATION OF DOMESTIC STOCK AND MUTUAL INSURERS (500.5000...500.5040)
218-1956-51DivisionCHAPTER 51 ORGANIZATION OF AN ACQUIRING INSURER FOR TRANSACTION OF CERTAIN TYPES OF INSURANCE (500.5100...500.5114)
218-1956-52DivisionCHAPTER 52 CORPORATE POWERS, PROCEDURES OF STOCK AND MUTUAL INSURERS (500.5200...500.5290)
218-1956-54DivisionCHAPTER 54 MUTUAL LIFE AND DISABILITY INSURERS (DOMESTIC) (500.5400...500.5430)
218-1956-58DivisionCHAPTER 58 GENERAL MUTUAL INSURERS (DOMESTIC) (500.5800...500.5840)
218-1956-59DivisionCHAPTER 59 CONVERSION OF DOMESTIC MUTUAL INSURER TO DOMESTIC STOCK INSURER (500.5901...500.5927)
218-1956-60DivisionCHAPTER 60 Reorganization of Mutual Insurers (500.6001...500.6031)
218-1956-61DivisionCHAPTER 61 AUTOMOBILE THEFT PREVENTION AUTHORITY (500.6101... 500.6125)
218-1956-62DivisionCHAPTER 62 MUTUAL EMPLOYERS' LIABILITY INSURERS (DOMESTIC) (500.6200...500.6236)
218-1956-64DivisionCHAPTER 64 COOPERATIVE PLAN INSURERS (DOMESTIC) (500.6400...500.6460)
218-1956-65DivisionCHAPTER 65 LIMITED LIABILITY POOLS (500.6500...500.6550)
218-1956-66DivisionCHAPTER 66 RAILWAY EMPLOYEES, AND LIFE, DISABILITY INSURERS (DOMESTIC, STOCK) (500.6600...500.6616)
218-1956-68DivisionCHAPTER 68 FARMERS' AND OTHER SPECIAL MUTUAL PROPERTY INSURERS (DOMESTIC) (500.6800...500.6886)
218-1956-70DivisionCHAPTER 70 MULTIPLE EMPLOYER WELFARE ARRANGEMENTS (500.7001...500.7090)
218-1956-72DivisionCHAPTER 72 RECIPROCAL INSURANCE EXCHANGES (500.7200...500.7234)
218-1956-73DivisionCHAPTER 73 TITLE INSURERS (500.7300...500.7318)
218-1956-76DivisionCHAPTER 76 CONSOLIDATION OR MERGER OF DOMESTIC INSURERS (500.7604...500.7606)
218-1956-77DivisionCHAPTER 77 (500.7701...500.7780)
218-1956-78DivisionCHAPTER 78 LIQUIDATIONS AND RECEIVERSHIPS (500.7800...500.7868)
218-1956-79DivisionCHAPTER 79 PROPERTY AND CASUALTY GUARANTY ASSOCIATION (500.7901...500.7949)
218-1956-80DivisionCHAPTER 80 FRATERNAL BENEFIT SOCIETIES (500.8000...500.8095)
218-1956-81DivisionCHAPTER 81 SUPERVISION, REHABILITATION, AND LIQUIDATION (500.8101...500.8160)
218-1956-81ADivisionCHAPTER 81a FRATERNAL BENEFIT SOCIETIES (500.8161...500.8199a)
218-1956-82DivisionCHAPTER 82 TRANSFORMATION OF FRATERNAL BENEFIT SOCIETIES (500.8204...500.8254)
218-1956-83DivisionCHAPTER 83 REPEALS, SAVING CLAUSE, EFFECTIVE DATE (500.8300...500.8302)