Section 500.6007 - Reorganization plan; contents.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.6007 Reorganization plan; contents.
Sec. 6007.
A plan of reorganization shall include all of the following:
(a) The reasons for the proposed reorganization.
(b) The effect of the reorganization on existing policies including all of the following:
(i) A provision that all policies in force on the effective date of the reorganization continue to remain in force under the terms of those policies, except that any voting or other membership rights of the policyholders provided for under the policies or under this act, and any contingent liability policy provisions permitted by this act are extinguished on the effective date of the reorganization.
(ii) A provision that holders of participating policies in effect on the date of reorganization continue to have the right to receive dividends as provided in the participating policies, if any.
(iii) A provision that, except for a mutual company's life policies, guaranteed renewable accident and health policies, and noncancelable accident and health policies, the converted company may issue the insured a nonparticipating policy as a substitute for the participating policy upon the renewal date of a participating policy.
(c) The detailed plans for granting membership interests to current and future policyholders of the converted company.
(d) Information sufficient to demonstrate that the financial condition of the converted company will not be diminished by the plan.
(e) A description of any current plans or any proposal approved by the mutual company board to issue shares of an intermediate holding company or shares of the converted company to the public or to other persons who are not direct or indirect subsidiaries of the mutual holding company.
(f) The identity of the proposed officers and directors of the mutual holding company and each intermediate holding company, if any, together with other biographical information as the commissioner requests.
(g) Other information as the commissioner requests or prescribes by rule.
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Compiler's Notes: Former Chapter 60, being MCL 500.6000-500.6034, was repealed by Act 256 of 1964, Eff.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