HB-6196, As Passed House, June 22, 2006
SUBSTITUTE FOR
HOUSE BILL NO. 6196
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 5248 (MCL 500.5248).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 5248. (1) No domestic insurer shall pay any salary,
compensation, or
emolument to any officer or director
thereof, of
the
domestic insurer unless such
the payment is first authorized
by
a vote of the board of directors of
such the insurer. No
such
insurer
shall make any agreement with any of its officers,
directors
or salaried employees whereby it agrees that for any
services
rendered or to be rendered he shall receive any salary,
compensation
or emolument that will extend beyond a period of 12
months
from the date of such agreement, except the limitation shall
not
be construed as preventing the insurer from entering into
contracts
with its agents for the payment of renewal commissions.
(2)
No such insurer shall grant any pension to any officer or
director
thereof, or to any member of his family after his death,
except
that such insurer may in pursuance of the terms of a
retirement
plan adopted by the board of directors of such insurer
and
approved by the commissioner provide for any person, who is or
has
been a salaried officer or employee of such insurer, a pension
payable
at the time of his retirement by reason of age or
disability,
and also life insurance benefits payable at his death.
(3)
Such an insurer, in pursuance of the terms of a plan
adopted
by its board of directors and approved by the commissioner,
may
provide for any person who is or has been a salaried officer or
employee
of such insurer, hospital, surgical, medical and health
care
benefits payable during his retirement, which plan shall
provide
equal benefits to all such officers, employees and their
dependents.
(2) (4)
No A director, officer, or employee of such
a
domestic insurer shall not be compensated unreasonably. The
compensation
of any director or officer of such a
domestic
insurer shall not be calculated, directly or indirectly, as a
percentage of premiums collected or insurance written by the
insurer, without the approval of the commissioner.
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. 6194.
(b) House Bill No. 6195.