THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
***** 500.912 THIS SECTION IS AMENDED EFFECTIVE 91 DAYS AFTER ADJOURNMENT OF THE 2014 REGULAR SESSION SINE DIE: See 500.912.amended *****
500.912 Qualified assets; description; limitation on governmental securities.
(1) Qualified assets for purposes of section 901 include all of the following:
(a) In the bonds or other evidences of indebtedness of the United States, or of the dominion of Canada, or any state, province, or territory or public instrumentality of the United States, or the dominion of Canada, or in the valid public debt, bonds, or other evidence of indebtedness of any city, county, township, village, school district, or any other political subdivision having the power to levy taxes, of any state or territory of the United States or province of the dominion of Canada, if the state, province, municipality, or other political subdivision has not, in the 3 years preceding the time of such investment, failed to pay its debt or any part of its debt or the interest due on the debt, or any part of the interest due on the debt. Delay, not exceeding 6 months, in the payment of any installment of principal or interest shall not be construed as failure to pay.
(b) In the bonds or other evidences of indebtedness of any political subdivision of the United States, or any state or county in the United States, or any agency, public instrumentality, or authority created by the United States, or any state or county in the United States, or any political subdivision of the state or county, if, by statutory or other legal requirements, those obligations are payable, as to both principal and interest, from adequate special revenues pledged or otherwise appropriated or by law required to be provided for the purpose of payment.
(c) In governmental securities of this or any foreign government, or governmental subdivisions or authorities or instrumentalities, not otherwise provided for in this section subject to the limitations in subdivisions (a) and (b) prescribed for other governmental securities.
(2) A domestic insurer's investment in governmental securities is subject to the limitations in section 901(2)(f).
History: 1956, Act 218, Eff. Jan. 1, 1957
Am. 1969, Act 318, Eff. Mar. 20, 1970
Am. 2002, Act 462, Imd. Eff. June 21, 2002
Popular Name: Act 218
© 2009 Legislative Council, State of Michigan