Michigan Compiled Laws
218-1956-52 - Chapter 52 Corporate Powers, Procedures of Stock and Mutual Insurers (500.5200...500.5290)
Section 500.5272 - Domestic Fire Insurance Company; Deficiency of Assets; Notice; Cessation of Business; Liability.

Sec. 5272.
(1) Whenever it shall appear to the commissioner, from examination of any domestic fire insurance company that the assets of the company are insufficient to justify the continuance in business of such company, he may direct the officers thereof to require the stockholders to pay in the amount of such deficiency within such period as he may designate in such requisition, and in case any such company shall fail to pay in and make good the full amount of such deficiency within 30 days after such requisition and direction as aforesaid, the commissioner shall give notice of such failure in some newspaper published in the county where the office of such company is located by its charter. Such notice shall contain a brief statement of the fact of such failure to comply with this section, and shall be published in such paper once in each week for 3 successive weeks.
(2) It shall not be lawful after the first publication of such notice for such company to issue any policy of insurance, or to make any contract for the same, or to transact any business under its charter, except to close up its business; and all contracts of insurance and policies issued after such first publication of such notice shall be void and of no binding force, and the person or persons making such contracts or issuing such policy shall be liable, in an action of trover, to the person insured, in double the sum named as premium in such contract or policy.
History: 1956, Act 218, Eff. Jan. 1, 1957 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.