Sec. 6027.
Without the commissioner's prior approval, neither the converted company nor any other person affiliated with or controlling the converted company shall transfer, assign, or divert business from the converted company to any other insurance company or affiliate if the purpose or effect of doing so would be to reduce significantly the number of members of the mutual holding company. What is a significant reduction shall be determined by the commissioner after examination of the converted company's business reasons for effecting any such transfer, assignment, or diversion.
History: Add. 2000, Act 8, Imd. Eff. Feb. 25, 2000 Compiler's Notes: Former Chapter 60, being MCL 500.6000-500.6034, was repealed by Act 256 of 1964, Eff. Aug. 28, 1964.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)
218-1956-60 - Chapter 60 Reorganization of Mutual Insurers (500.6001...500.6031)
Section 500.6001 - Definitions.
Section 500.6003 - Reorganization of Mutual Company; Formation.
Section 500.6005 - Reorganization Plan; Adoption; Amendment; Withdrawal.
Section 500.6007 - Reorganization Plan; Contents.
Section 500.6009 - Reorganization Plan; Operation and Support of Closed Block of Business.
Section 500.6015 - Documents to Be Filed After Plan Approval.
Section 500.6017 - Mutual Holding Company; Articles of Incorporation.
Section 500.6019 - Reorganization Plan; Conditions for Plan to Take Effect.
Section 500.6023 - Membership Interest in Mutual Holding Company.
Section 500.6025 - Mutual Holding Company; Powers and Duties.
Section 500.6027 - Transfer, Assignment, or Diversion of Business From Converted Business.