HB-6194, As Passed House, June 22, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 6194

     A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending section 5238 (MCL 500.5238), as amended by 1989 PA 139.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 5238. (1) In all insurers organized under the laws of

Michigan, at least 1 of the trustees or directors shall be a

resident of the state of Michigan. The articles of incorporation or

bylaws of an insurer other than a stock insurer may provide that a

director shall be a policyholder of the insurer.

     (2) The board of directors of a domestic insurer shall meet

not fewer than 4 times per fiscal year in person or by means of

electronic communication devices that enable all participants in a

meeting to communicate with each other.

     (3) Each director of a domestic insurer when elected or

appointed shall take and subscribe an oath that he or she will

diligently and honestly perform the duties of the office and will

not knowingly violate, or knowingly permit to be violated, any

provisions of this act. The oath shall be transmitted to the

commissioner for filing.

     Enacting section 1.  This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) House Bill No. 6195.

     (b) House Bill No. 6196.