Sec. 5828.
(1) The policies shall provide for a premium or premium deposit payable in cash and, except as herein provided, for a contingent premium at least equal to the premium or premium deposit.
(2) Such mutual insurer may issue a policy without a contingent premium while it has a surplus equal to the capital required of a domestic stock insurer transacting the same kinds of insurance, and in no event shall the holder of any such policy be liable for a greater amount than the premium or premium deposit expressed in the policy.
(3) If at any time the admitted assets are less than the reserve and other liabilities, the insurer shall immediately collect upon policies with a contingent premium a sufficient proportionate part thereof to restore such assets, provided no member shall be liable for any part of such contingent premium in excess of the amount demanded within 1 year after the termination of the policy. The commissioner may, by written order, direct that proceedings to restore such assets be deferred during the time fixed in such order.
History: 1956, Act 218, Eff. Jan. 1, 1957 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)
218-1956-58 - Chapter 58 General Mutual Insurers (Domestic) (500.5800...500.5840)
Section 500.5800 - Applicability of Chapter.
Section 500.5804 - Domestic Mutual Insurers; Incorporation.
Section 500.5810 - Domestic Mutual Insurers; Qualification for Certificate of Authority.
Section 500.5814 - Repealed. 1970, Act 180, Imd. Eff. Aug. 3, 1970.
Section 500.5818 - Domestic Mutual Insurers; Rights of Corporation and Other Bodies to Be Members.
Section 500.5824 - Voting Rights of Members; Administrative Services Agreements.
Section 500.5826 - Offering Health Care Benefits to Residents Regardless of Health Status.
Section 500.5836 - Mutual Insurers; Borrowed Capital.
Section 500.5840 - Domestic Mutual Insurers; Deficiency in Assets; Assessment of Members.