Section 500.1315 - Merger or acquisition of control; approval of commissioner; hearing.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.1315 Merger or acquisition of control; approval of commissioner; hearing.
Sec. 1315.
(1) The commissioner shall approve any merger or other acquisition of control referred to in section 1311 of a domestic insurer unless the commissioner determines on the basis of information furnished to the commissioner on the merger or other acquisition of control 1 or more of the following:
(a) After the change of control the domestic insurer referred to in section 1311 would not be able to satisfy the requirements for the issuance of a certificate of authority to write the types of insurance for which it is presently authorized.
(b) The effect of the merger or other acquisition of control would be substantially to lessen competition in insurance in this state or tend to create a monopoly in this state.
(c) The financial condition of any acquiring party is such as might jeopardize the financial stability of the insurer, or prejudice the interest of its policyholders or the interests of any remaining securityholders who are unaffiliated with the acquiring party.
(d) The terms of the offer, request, invitation, agreement, or acquisition referred to in section 1311 are unfair and unreasonable to the insurer's policyholders or securityholders.
(e) The plans or proposals that the acquiring party has to liquidate the insurer, sell its assets, consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to the insurer's policyholders, and not in the public interest.
(f) The competence, experience, and integrity of those persons who would control the operation of the insurer are such that it would not be in the interest of the insurer's policyholders or the general public to permit the merger or other acquisition of control.
(2) A person aggrieved by the commissioner's order under this section shall be entitled to a contested case hearing before the commissioner pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws. The commissioner shall make a final decision within 30 days after the conclusion of the hearing.
History: Add. 1970, Act 136, Imd. Eff. July 29, 1970 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992
Popular Name: Act 218