Michigan Compiled Laws
218-1956-52 - Chapter 52 Corporate Powers, Procedures of Stock and Mutual Insurers (500.5200...500.5290)
Section 500.5248 - Directors, Officers, and Employees of Domestic Insurer; Compensation.

Sec. 5248.
(1) No domestic insurer shall pay any salary, compensation, or emolument to any officer or director of the domestic insurer unless the payment is first authorized by a vote of the board of directors of the insurer.
(2) A director, officer, or employee of a domestic insurer shall not be compensated unreasonably. The compensation of any director or officer of a domestic insurer shall not be calculated, directly or indirectly, as a percentage of premiums collected or insurance written by the insurer, without the approval of the commissioner.
History: 1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1957, Act 91, Eff. Sept. 27, 1957 ;-- Am. 1959, Act 30, Eff. Mar. 19, 1960 ;-- Am. 1963, Act 69, Eff. Sept. 6, 1963 ;-- Am. 1965, Act 243, Imd. Eff. July 21, 1965 ;-- Am. 2006, Act 289, Imd. Eff. July 20, 2006 Popular Name: Act 218

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Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 500 - Insurance Code of 1956

Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)

218-1956-52 - Chapter 52 Corporate Powers, Procedures of Stock and Mutual Insurers (500.5200...500.5290)

Section 500.5200 - Applicability of Chapter.

Section 500.5202 - Life, Accident or Sickness Insurers; Reorganization Under Code.

Section 500.5204 - Companies Deemed Bodies Corporate and Politic; Corporation Law Applicable.

Section 500.5205 - Proof of Corporate Existence and Authority to Insure.

Section 500.5206 - Corporate Powers; Enumeration; Exercise by Board of Directors.

Section 500.5208 - Corporate Powers; Limitations; Applicability of Prohibition; Services Performed in Connection With Noninsured Benefit Plan; Provisions; Interference With Rights and Obligations Under Collective Bargaining Agreement Prohibited; Repo...

Section 500.5208a - Definitions; Prohibited Conduct; Probable Cause of Violation; Notice of Hearing; Opportunity to Confer and Discuss Complaint and Proceedings; Action for Damages; Hearing; Findings and Decision; Cease and Desist Order; Processing C...

Section 500.5209 - Insurer's Name; Restrictions.

Section 500.5210 - Dealing in Commodities Prohibited; Exception.

Section 500.5214 - Articles of Incorporation; Amendment.

Section 500.5215 - Articles of Domestic Stock Insurer; Amendment as to Increase, Decrease, or Reclassification of Capital Stock.

Section 500.5216 - Articles; Amendment as to Reduction of Capital; Condition; Methods of Effecting Reduction.

Section 500.5218 - Increase or Decrease of Capital Stock; Authorization by Commissioner; Approval by Stockholders; Vote; Final Approval; Par Value of Stock; Issuance of New Stock.

Section 500.5220 - Blank Forms for Amending Articles.

Section 500.5222 - Corporate Life; Extension.

Section 500.5224 - Corporate Life; Expiration, Liquidation.

Section 500.5228 - Bylaws; Adoption; Filing.

Section 500.5230 - Special Meetings of Stockholders or Members; Notice of Meetings.

Section 500.5232 - Voting Rights; Stockholders, Members, Proxies, Fiduciaries, Pledgees.

Section 500.5234 - Stockholders and Members; Voting Rights, Quorum.

Section 500.5236 - Voting Rights; Inspectors of Election.

Section 500.5238 - Trustees or Directors; Residency Requirement; Director as Policyholder of Insurer; Meetings; Frequency; Oath.

Section 500.5239 - Repealed. 1988, Act 290, Eff. Jan. 1, 1989.

Section 500.5240 - Discharging Duties of Director or Officer; Commencement of Action for Failure to Perform Duties.

Section 500.5241 - Indemnification Against Expenses of Action, Suit, or Proceeding Generally.

Section 500.5242 - Indemnification Against Expenses of Action, Suit, or Proceeding; Additional Provisions.

Section 500.5242a - Indemnification Against Expenses of Action, Suit, or Proceeding; Mandatory; Standard of Conduct; Determination.

Section 500.5242b - Payment of Expenses in Advance of Final Disposition of Action, Suit, or Proceeding; Undertaking.

Section 500.5242c - Indemnification or Advancement of Expenses Not Exclusive of Other Rights; Indemnification Inuring to Benefit of Heirs, Executors, and Administrators.

Section 500.5242d - “Corporation” Defined for Purposes of MCL 500.5241 to 500.5242c.

Section 500.5243 - Repealed. 1988, Act 290, Eff. Jan. 1, 1989.

Section 500.5244 - Liability for Payment Under Invalid Law or Ordinance.

Section 500.5245 - Board of Directors; Quorum; Special Meetings; Consent to Action Taken Without Meeting.

Section 500.5246 - Officers and Agents; Appointment, Removal, Bond.

Section 500.5248 - Directors, Officers, and Employees of Domestic Insurer; Compensation.

Section 500.5252 - Director or Officer of Insurance Corporation; Receiving Money or Valuables For, or Having Pecuniary Interest In, Purchase, Sale, or Loan Prohibited; Certain Transactions Not Prohibited; Issuing Certificate of Exemption; Hearing; Re...

Section 500.5256 - Records Relating to Insurer's Business or Affairs; Locations; Production; Safekeeping of Securities, Notes, Mortgages, or Other Evidences of Indebtedness; Exceptions; Holding Certificates in Name of Nominee; Indorsement; Control or...

Section 500.5258 - Acknowledgments.

Section 500.5260 - Stock Certificates; Substitutions.

Section 500.5264 - Expenditures, Vouchers, and Affidavits.

Section 500.5266 - Dividends to Stockholders; General Provision.

Section 500.5267 - Dividends to Stockholders; Domestic Fire Insurance Company.

Section 500.5270 - Insurer's Rights as Stockholder in Other Corporations.

Section 500.5272 - Domestic Fire Insurance Company; Deficiency of Assets; Notice; Cessation of Business; Liability.

Section 500.5274 - Domestic Fire Insurance Company; Assessment of Stockholders.

Section 500.5276 - Domestic Fire Insurance Company; Liability of Directors Under New Risks Accepted During Deficiency.

Section 500.5280 - Domestic Mutual Insurer; Assets; Deficiency; Liability of Director.

Section 500.5282 - Domestic Stock Insurer; Statement of Beneficial Ownership of Equity Securities.

Section 500.5283 - Unfair Use of Information; Prevention; Actions for Recovery of Profits; Limitations; Exempt Transactions.

Section 500.5283a - Acquisition of Stock or Stock Option; Exemption From MCL 500.5283; Conditions; Definition.

Section 500.5283b - Selection of Director or Officer to Whom Stock Allocated or Options Granted; Exercise of Discretion; Director or Committee Member as Disinterested Person; Section Inapplicable to Certain Options or Equity Securities.

Section 500.5283c - Stock Purchase Plan; Limitations.

Section 500.5284 - Securities Not Owned; Sale; Failure to Deliver to Transferee; Exception.

Section 500.5285 - Nonapplication of Sections to Certain Transactions.

Section 500.5286 - Foreign or Domestic Arbitrage Transactions; Exemptions.

Section 500.5287 - Equity Security; Definition.

Section 500.5288 - Registered Equity Securities; Exemptions; Conditions.

Section 500.5289 - Insurance Commissioner; Regulatory Powers; Effect of Good Faith.

Section 500.5290 - Unlawful Solicitation; Use of Name to Solicit Proxies or Consents.