Sec. 7070.
The commissioner may suspend, revoke, or limit the certificate of authority of a MEWA if the commissioner determines that any of the following conditions exists:
(a) The MEWA has failed to maintain a policy for excess insurance as required by section 7011.
(b) The MEWA is using financial methods and practices in the conduct of its business which render further transaction of business in this state hazardous or injurious to its members, employees, beneficiaries, or to the public.
(c) The MEWA has failed, after written request by the commissioner, to remove or discharge an officer, director, trustee, or other employee who has been convicted of any crime involving fraud, dishonesty, or moral turpitude.
(d) The MEWA has failed or refused to furnish any report or statement required under section 7040.
(e) The MEWA has failed for an unreasonable period to pay any final judgment rendered against it in this state on any contractual obligation.
(f) The commissioner, upon investigation, determines that the MEWA is conducting business fraudulently, or is not meeting its contractual obligations in good faith.
History: Add. 1986, Act 121, Eff. July 1, 1986 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)
218-1956-70 - Chapter 70 Multiple Employer Welfare Arrangements (500.7001...500.7090)
Section 500.7001 - Definitions.
Section 500.7006 - Benefits to Which Authorized Mewa Limited.
Section 500.7011 - Conditions to Issuance of Certificate of Authority.
Section 500.7022 - Name of Mewa; Proof of Existence of Mewa.
Section 500.7024 - Powers of Mewa.
Section 500.7028 - Duties of Trustees; Limitation on Liability of Trustee.
Section 500.7032 - Compensation of Trustee, Officer, or Employee.
Section 500.7034 - Trustee or Officer; Prohibited Conduct; Violation as Felony; Penalty.
Section 500.7044 - Notice to Individual Covered by Plan.
Section 500.7060 - Additional Provisions to Which Mewa Subject.
Section 500.7070 - Certificate of Authority; Grounds for Suspension, Revocation, or Limitation.
Section 500.7086 - Security Fund as Creditor of Insolvent Mewa; Reimbursement From Insolvent Mewa.