Sec. 437.
(1) A proceeding to suspend, revoke, or limit an insurer's certificate of authority shall be initiated by the commissioner by granting the insurer an opportunity to show compliance with all lawful requirements as provided under section 92 of the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being section 24.292 of the Michigan Compiled Laws. If the commissioner subsequently determines pursuant to section 436 to suspend, revoke, or limit the insurer's certificate of authority, the determination and the reasons for the determination shall be stated in the order of suspension, revocation, or limitation.
(2) The insurer aggrieved by the commissioner's determination and order issued under section 436 shall be entitled to a contested case hearing pursuant to Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws. During the pendency of the contested case proceeding, the commissioner's order shall remain in effect, except as modified by the commissioner or as stayed by a court pursuant to section 244.
(3) The commissioner's order and determination may be confirmed or modified by the commissioner as the result of a contested case hearing and shall be the final decision or order in the contested case.
(4) Upon suspension, revocation, or limitation of an insurer's certificate of authority, if the commissioner considers it necessary or desirable for the protection of the public, he or she may mail notice of the action to the insurer's agents and publish notice of the suspension, revocation, or limitation in 1 or more newspapers of general circulation in the state.
(5) The commissioner's order of limitation may restrict the solicitation of new business within the state, may restrict the renewal of business in force within the state, may require the reinsurance of business in force within the state and, if reinsurance is not effected within 30 days after the order requiring reinsurance is issued, may require cancellation of business in force within the state and may impose such other conditions to continued authorization as are reasonably necessary to protect policyholders, creditors, and the public.
History: Add. 1972, Act 360, Imd. Eff. Jan. 9, 1973 ;-- Am. 1992, Act 182, Imd. Eff. Oct. 1, 1992 Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
218-1956-4 - Chapter 4 Authorization of Insurers and General Requirements (500.402...500.480)
Section 500.402 - Insurers; Certificate of Authority Requirement.
Section 500.402a - Transactions of Insurance Requiring Certificate of Authority.
Section 500.402b - Transactions of Insurance Not Requiring Certificate of Authority.
Section 500.402c - Motor Vehicle Rental Company; Insurance Transaction; Definitions.
Section 500.403 - Insurers; Authorization to Do Business.
Section 500.404 - Insurers; Financial Conditions; Compliance Required.
Section 500.405b - Requalification Pursuant to MCL 500.405 or 500.405a; Formal Review.
Section 500.407 - Authorization to Transact Kinds of Insurance; Exceptions.
Section 500.410a - Bail Bond Surety and Fidelity Insurance Company; Authority to Transact Insurance.
Section 500.411 - Deposits Required to Transact Insurance.
Section 500.412 - Procedure for Becoming Domestic Insurer.
Section 500.416 - Special Deposit.
Section 500.417 - Repealed. 1966, Act 137, Eff. Mar. 10, 1967.
Section 500.422 - Repealed. 1994, Act 226, Imd. Eff. June 27, 1994.
Section 500.425, 500.426 - Repealed. 1992, Act 182, Imd. Eff. Oct. 1, 1992.
Section 500.430 - Repealed. 1992, Act 182, Imd. Eff. Oct. 1, 1992.
Section 500.431 - Definitions.
Section 500.431a - State of Entry by Alien Insurer Through u.s. Branch; Requirements.
Section 500.431b - u.s. Branch Using State as State of Entry to Transact Insurance; Compliance.
Section 500.431c - Trusteed Assets; Value.
Section 500.433 - Trusteed Assets Below Minimum Required; Proceeding Against Alien Insurer.
Section 500.434 - Repealed. 1972, Act 360, Imd. Eff. Jan. 9, 1973.
Section 500.436b - Certificate of Authority Limited by Order of Commissioner.
Section 500.439 - Repealed. 1992, Act 182, Imd. Eff. Oct. 1, 1992.
Section 500.440 - Repealed. 1987, Act 261, Imd. Eff. Dec. 28, 1987.
Section 500.441, 500.442 - Repealed. 1987, Act 261, Imd. Eff. Dec. 28, 1987.
Section 500.444 - Collection of Delinquent Taxes With Interest or Penalty.
Section 500.445 - Delinquency as Bar to Granting Certificate of Authority.
Section 500.446 - Repealed. 1987, Act 261, Imd. Eff. Dec. 28, 1987.
Section 500.448, 500.449 - Repealed. 1975, Act 232, Eff. July 2, 1976.
Section 500.450 - Repealed. 1987, Act 261, Imd. Eff. Dec. 28, 1987.
Section 500.451 - Taxes on Unauthorized Insurers; Regulatory Fee; Payment; Delinquency.
Section 500.454 - Name of Insurer.
Section 500.457 - Repealed. 1992, Act 182, Imd. Eff. Oct. 1, 1992.
Section 500.460 - Insurance Producer to Write or Place Insurance Policies.
Section 500.462 - Signature of Insurance Producer on Application for Life or Disability Insurance.
Section 500.464 - Additional Deposits by Domestic Insurers.
Section 500.470 - Repealed. 1992, Act 182, Imd. Eff. Oct. 1, 1992.
Section 500.476 - Repealed. 1987, Act 261, Imd. Eff. Dec. 28, 1987.
Section 500.476b - Taxes to Which Authorized Insurer Subject.
Section 500.476c - Repealed. 1993, Act 200, Eff. Dec. 28, 1994.
Section 500.478 - Naic Report of Activities.