Section 500.250 - Insurers; stock transfer; officers or directors; appointment; notice to commissioner; removal; hearings; civil immunity; review.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.250 Insurers; stock transfer; officers or directors; appointment; notice to commissioner; removal; hearings; civil immunity; review.
Sec. 250.
(1) All insurers licensed to do business in this state shall notify the commissioner within 30 days of any transfer of stock that results in any 1 person holding 10% or more of the voting shares of an insurer. In addition, a domestic insurer shall notify the commissioner within 30 days of the appointment or election of any new officers or directors.
(2) If, after proceedings under section 249, the commissioner has reason to believe that an officer or director is untrustworthy or has abused his or her trust and that continuation as an officer or director is hazardous or injurious to the insurer, the policyholders, or the public, the commissioner shall hold a hearing. After the hearing and after written findings that the officer or director is untrustworthy or has abused his or her trust and that continuation as an officer or director is hazardous or injurious to the insurer, the policyholders, or the public, the commissioner may order the removal of the officer or director.
(3) If the insurer does not comply with a removal order under subsection (2) within 30 days, the commissioner may suspend or revoke the insurer's certificate of authority until the insurer complies with the order.
(4) Any action under this section taken by an insurer, its directors, or officers pursuant to an order of the commissioner under this act shall be considered to be in good faith and shall not be the basis for subjecting the insurer, its directors, or officers to civil liabilities.
(5) Any order of the commissioner issued under this section is subject to review as provided in section 244.
History: Add. 1967, Act 262, Eff. Nov. 2, 1967 ;-- Am. 2002, Act 684, Imd. Eff. Dec. 30, 2002
Popular Name: Act 218