Michigan Laws 500.6027 – Transfer, assignment, or diversion of business from converted business
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 500.6027
- Commissioner: means the director. See Michigan Laws 500.102
- Converted company: means a Michigan domiciled stock insurance company that results from the reorganization of a mutual company under this chapter. See Michigan Laws 500.6001
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
Without the commissioner‘s prior approval, neither the converted company nor any other person affiliated with or controlling the converted company shall transfer, assign, or divert business from the converted company to any other insurance company or affiliate if the purpose or effect of doing so would be to reduce significantly the number of members of the mutual holding company. What is a significant reduction shall be determined by the commissioner after examination of the converted company’s business reasons for effecting any such transfer, assignment, or diversion.