Michigan Laws 500.946 – Home office, lands, and buildings; includable as qualified assets
Current as of: 2023 | Check for updates
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(1) Subject to the limitations in section 901, qualified assets for purposes of section 901 include a home office, lands, and buildings as follows:
(a) A building in which the insurer has its principal home office and the land upon which the building stands.
Terms Used In Michigan Laws 500.946
- Appraisal: A determination of property value.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commissioner: means the director. See Michigan Laws 500.102
- Insurer: means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other legal entity, engaged or attempting to engage in the business of making insurance or surety contracts. See Michigan Laws 500.106
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(b) Real estate requisite for its accommodation in the convenient transaction of its business.
(c) Other real estate requisite or desirable for the protection or enhancement of the value of real estate described under subdivisions (a) and (b).
(2) Any parcel of real estate acquired under this section may include excess space for rental to others or if the excess is reasonably required in order to have a building that would be an economic unit.
(3) Real estate under this section may be subject to a mortgage.
(4) Any real estate investment under this section that would result in a total real estate investment in excess of 10% of a domestic insurer’s capital and surplus shall not be made until a certificate of permission for the purchase or construction of the property is granted by the commissioner. The commissioner may require an appraisal of the property considered for investment by 3 qualified appraisers, appointed by the commissioner for the purpose of the appraisal, and their certification to the commissioner of a valuation of the property at least equal to the amount that is proposed to be invested in the property by the insurer.