Sec. 8158.
(1) In a liquidation proceeding in this state involving 1 or more reciprocal states, the order of distribution of the domiciliary state shall control as to all claims of residents of this and reciprocal states. All claims of residents of reciprocal states shall be given equal priority of payment from general assets regardless of where the assets are located.
(2) The owners of special deposit claims against an insurer for which a liquidator is appointed in this or any other state shall be given priority against the special deposits in accordance with the statutes governing the creation and maintenance of the deposits. If there is a deficiency in any deposit so that the claims secured by it are not fully discharged from it, the claimants may claim against a security fund or share in the general assets, but the sharing shall be deferred until general creditors having the same priority, and also claimants against other special deposits having the same priority who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the special deposit.
(3) The owner of a secured claim against an insurer for which a liquidator has been appointed in this or any other state may surrender his or her security for the claim and file his or her claim as a general creditor, or the claim may be discharged by resort to the security in accordance with section 8141, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer or the appropriate security fund on the same basis as claims of unsecured creditors having the same priority.
History: Add. 1989, Act 302, Imd. Eff. Jan. 3, 1990 ;-- Am. 1994, Act 226, Imd. Eff. June 27, 1994 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)
218-1956-81 - Chapter 81 Supervision, Rehabilitation, and Liquidation (500.8101...500.8160)
Section 500.8101 - Construction and Purpose of Chapter.
Section 500.8102 - Applicability of Proceedings Authorized by Chapter.
Section 500.8103 - Definitions.
Section 500.8104 - Commencement of Delinquency Proceeding; Jurisdiction; Stay of Proceedings.
Section 500.8105 - Receiver; Application for Relief.
Section 500.8107 - Official Bonds.
Section 500.8108a - Prohibited Conduct by Insurer.
Section 500.8110 - Seizure Order.
Section 500.8111 - Confidentiality; Exception; “Third Parties” Defined.
Section 500.8112 - Rehabilitation of Insurer; Petition; Grounds.
Section 500.8117 - Liquidation of Domestic or Alien Insurer; Basis.
Section 500.8120 - Dissolution of Corporation.
Section 500.8122 - Notice of Liquidation; Filing Claims; Changes of Address.
Section 500.8123 - Notice by Agent to Policyholder; Report of Compliance; Penalty; Waiver.
Section 500.8129 - Claim of Creditor; Allowance; Excused Late Filing.
Section 500.8130 - Setoff or Counterclaim.
Section 500.8139 - Denial of Claim; Filing of Objections; Hearing; Notice.
Section 500.8140 - Subrogation to Rights of Creditor; Distribution; Excess Received by Creditor.
Section 500.8141a - Payment of Special Deposit Claims; Priority; Transfer of Special Deposits.
Section 500.8144 - Distributions; Manner of Payment; Distribution of Assets in Kind.
Section 500.8145 - Disposition of Unclaimed or Withheld Funds.
Section 500.8146 - Application for Discharge.
Section 500.8147 - Petition to Reopen Proceedings.
Section 500.8148 - Retention or Destruction of Records.
Section 500.8150 - Conservator.
Section 500.8152 - Vesting of Title in Domiciliary Liquidator or Commissioner; Filing Claims.
Section 500.8154 - Institution of Proceedings Under MCL 500.8109 to 500.8111.
Section 500.8155 - Filing of Claims; Proof; Conclusiveness of Final Allowance of Claims.
Section 500.8157 - Prohibited Action or Proceeding.
Section 500.8159 - Failure to Transfer Assets.
Section 500.8160 - Repealed. 2001, Act 143, Imd. Eff. Oct. 26, 2001.