Section 500.7070 - Certificate of authority; grounds for suspension, revocation, or limitation.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.7070 Certificate of authority; grounds for suspension, revocation, or limitation.
Sec. 7070.
The commissioner may suspend, revoke, or limit the certificate of authority of a MEWA if the commissioner determines that any of the following conditions exists:
(a) The MEWA has failed to maintain a policy for excess insurance as required by section 7011.
(b) The MEWA is using financial methods and practices in the conduct of its business which render further transaction of business in this state hazardous or injurious to its members, employees, beneficiaries, or to the public.
(c) The MEWA has failed, after written request by the commissioner, to remove or discharge an officer, director, trustee, or other employee who has been convicted of any crime involving fraud, dishonesty, or moral turpitude.
(d) The MEWA has failed or refused to furnish any report or statement required under section 7040.
(e) The MEWA has failed for an unreasonable period to pay any final judgment rendered against it in this state on any contractual obligation.
(f) The commissioner, upon investigation, determines that the MEWA is conducting business fraudulently, or is not meeting its contractual obligations in good faith.
History: Add. 1986, Act 121, Eff. July 1, 1986
Popular Name: Act 218