HB-6196, As Passed Senate, June 28, 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.