Section 500.6001 - Definitions.

THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956

500.6001 Definitions.

Sec. 6001.

As used in this chapter:

(a) “Converted company” means a Michigan domiciled stock insurance company that results from the reorganization of a mutual company under this chapter.

(b) “Eligible member” means a member whose policy is in force on the date the mutual company's board of directors adopts a plan of reorganization under this chapter.

(c) “Intermediate holding company” means a business corporation subsidiary of a mutual holding company domiciled in this state, any other state, or the District of Columbia that is authorized to issue 1 or more classes of capital stock, the corporate purposes of which include holding directly or indirectly the voting stock of a converted company.

(d) “Member” means a person who, on the records of the mutual company and pursuant to its articles of incorporation or bylaws, is considered to be a holder of a membership interest in the mutual company. A person insured under a group policy is not a member. On and after the effective date of a reorganization under this chapter, member means a member of the mutual holding company created in the reorganization.

(e) “Mutual holding company” or “MHC” means a mutual corporation resulting from a reorganization of a mutual company under this chapter.

(f) “Mutual company” means a domestic mutual insurance company organized under chapter 50, 54, or 58.

(g) “Plan of reorganization” or “plan” means a plan adopted pursuant to this chapter by the board of directors of a mutual company for the reorganization of the mutual company simultaneously into both a mutual holding company and a converted company existing as a direct or indirect stock subsidiary of the mutual holding company.

(h) “Policy” means a group or individual insurance policy or contract issued by a mutual company. The term policy does not include a certificate of insurance issued in connection with a group policy or contract.

(i) “Policyholder” means the holder of a policy other than a reinsurance contract.


History: Add. 2000, Act 8, Imd. Eff. Feb. 25, 2000
Compiler's Notes: Former Chapter 60, being MCL 500.6000-500.6034, was repealed by Act 256 of 1964, Eff. Aug. 28, 1964.
Popular Name: Act 218