Sec. 8176.
(1) A domestic society, by a reinsurance agreement, may cede any individual risk in whole or in part to an insurer, other than another fraternal benefit society, having the power to make reinsurance and authorized to do business in this state or approved by the commissioner. A society shall not reinsure substantially all of its insurance in force without the commissioner's written permission. A society may take credit for the reserves on such ceded risks to the extent reinsured, but credit shall not be allowed as an admitted asset or as a deduction from liability, to a ceding society for reinsurance made, ceded, renewed, or otherwise becoming effective on or after April 1, 1990, unless the reinsurance is payable by the assuming insurer on the basis of the liability of the ceding society under the contract reinsured without diminution because of the insolvency of the ceding society.
(2) Notwithstanding the limitation in subsection (1), a society may reinsure the risks of another society in a consolidation or merger approved by the commissioner under section 8177.
History: Add. 1990, Act 1, Eff. Apr. 1, 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)
218-1956-81A - Chapter 81a Fraternal Benefit Societies (500.8161...500.8199a)
Section 500.8161 - Definitions.
Section 500.8162 - Society Governed by Chapter; Exemption.
Section 500.8163 - Society as Charitable and Benevolent Institution; Tax Exemption.
Section 500.8164 - Definition of Fraternal Benefit Society.
Section 500.8165 - Society Operating on Lodge System; Requirements; Lodges for Children.
Section 500.8170 - Personal Liability; Indemnification and Reimbursement; Purchase of Insurance.
Section 500.8171 - Waiver of Society's Laws.
Section 500.8173 - Reincorporation Not Required.
Section 500.8174 - Amendment to Laws.
Section 500.8175 - Not for Profit Institution; Purposes; Reporting Real or Personal Property.
Section 500.8176 - Reinsurance Agreement.
Section 500.8178 - Domestic Fraternal Benefit Society as Mutual Life Insurance Company.
Section 500.8179 - Contractual Benefits; Specifying Persons Covered in Rules.
Section 500.8181 - Attachment, Garnishment, or Other Process.
Section 500.8182 - Benefit Contracts.
Section 500.8184 - Investments Generally.
Section 500.8186 - Standards of Valuation for Certificates; Excess Reserves.
Section 500.8187 - Reports; Annual Statement; Valuation of Certificates; Penalty.
Section 500.8189 - Examination of Society.
Section 500.8190 - Foreign or Alien Society; License Required; Compliance; Conditions.
Section 500.8193 - Application or Petition for Injunction; Recognition.
Section 500.8194 - Agent of Society; License Required; Exceptions.
Section 500.8195 - Society Subject to Chapter 20.
Section 500.8196 - Service of Process.
Section 500.8198 - Decisions and Findings of Commissioner; Judicial Review.
Section 500.8199 - Exemptions.
Section 500.8199a - Additional Chapters and Provisions Applicable to Fraternal Benefit Society.