Sec. 5919.
(1) All members whose policies become effective after the proposed plan has been adopted by the board of directors and before the effective date of the plan shall be given written notice of the plan of conversion on or before the forty-fifth day after the effective date of the plan. The notice shall specify the member's right to rescind or cancel the member's policy, as provided in subsection (2). A copy of the description of the plan provided to members pursuant to section 5903(5) shall accompany the notice. The form of the notice shall be filed with and approved by the commissioner.
(2) A member of a life or health insurance company entitled to receive the notice described in subsection (1) is entitled to rescind the member's policy and receive a full refund of any amounts paid for the policy or contract within 10 days after he or she has received the notice. Each member of a property or casualty insurance company entitled to receive the notice provided for in subsection (1) shall be advised of the member's right of cancellation and to a pro rata refund of unearned premiums.
History: Add. 1995, Act 215, Imd. Eff. Nov. 29, 1995 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)
Section 500.5901 - Definitions.
Section 500.5904 - Plan of Conversion; Prohibited Conduct.
Section 500.5905 - Conversion Plan; Contents; Provisions Applicable to Subscription Rights.
Section 500.5907 - Conversion Plan; Provisions Applicable to Operation as Closed Block of Business.
Section 500.5911 - Receipt of Subscription Rights by Directors and Officers of Mutual Company.
Section 500.5913 - Allocation of Subscription Rights to Employee Benefit Plan.
Section 500.5917 - Effectiveness of Plan; Conditions.
Section 500.5925 - Validity of Actions.
Section 500.5927 - Petition to Waive Notice and Approval Requirements.