Sec. 6534.
Every pool subject to this chapter shall maintain a contingency reserve at all times at least equal to 2/7 of the total premium income for the preceding calendar year but not less than $300,000.00 and shall maintain a deposit with the state treasurer of the kind and amount and for the purposes specified in section 411. The deposit with the state treasurer may be used by the pool for purposes of calculating the contingency reserve. This contingency reserve shall be in addition to the ordinary reserves maintained for unpaid losses and loss adjustment expenses, including those claims which have been incurred but not reported and the reserve required under section 6532.
History: Add. 1986, Act 173, Imd. Eff. July 7, 1986 ;-- Am. 1990, Act 350, Imd. Eff. Dec. 26, 1990 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)
218-1956-65 - Chapter 65 Limited Liability Pools (500.6500...500.6550)
Section 500.6500 - Applicability of Chapter.
Section 500.6502 - Formation of Limited Liability Pool; Purpose.
Section 500.6506 - Powers of Limited Liability Pool; Limitation.
Section 500.6510 - Commencement of Business; Pool Not Subject to MCL 500.410.
Section 500.6512 - Limited Liability Pool; Formation; Purpose.
Section 500.6514 - Limited Liability Pool; Rates.
Section 500.6516 - Limited Liability Pool; Underwriting Rules.
Section 500.6517 - Limited Liability Pool; Reinsurance.
Section 500.6522 - Insured Person as Member of Pool; Voting Rights; Quorum; Inspection of Books.
Section 500.6532 - Reserves for Unearned Premiums.
Section 500.6534 - Contingency Reserve; Deposit With State Treasurer; Use of Deposit.