Michigan Laws 500.6001 – Definitions
Current as of: 2024 | Check for updates
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As used in this chapter:
(a) “Converted company” means a Michigan domiciled stock insurance company that results from the reorganization of a mutual company under this chapter.
Terms Used In Michigan Laws 500.6001
- Contract: A legal written agreement that becomes binding when signed.
- Converted company: means a Michigan domiciled stock insurance company that results from the reorganization of a mutual company under this chapter. See Michigan Laws 500.6001
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Member: means a person who, on the records of the mutual company and pursuant to its articles of incorporation or bylaws, is considered to be a holder of a membership interest in the mutual company. See Michigan Laws 500.6001
- Mutual company: means a domestic mutual insurance company organized under chapter 50, 54, or 58. See Michigan Laws 500.6001
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
- plan: means a plan adopted pursuant to this chapter by the board of directors of a mutual company for the reorganization of the mutual company simultaneously into both a mutual holding company and a converted company existing as a direct or indirect stock subsidiary of the mutual holding company. See Michigan Laws 500.6001
- Policy: means a group or individual insurance policy or contract issued by a mutual company. See Michigan Laws 500.6001
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(b) “Eligible member” means a member whose policy is in force on the date the mutual company’s board of directors adopts a plan of reorganization under this chapter.
(c) “Intermediate holding company” means a business corporation subsidiary of a mutual holding company domiciled in this state, any other state, or the District of Columbia that is authorized to issue 1 or more classes of capital stock, the corporate purposes of which include holding directly or indirectly the voting stock of a converted company.
(d) “Member” means a person who, on the records of the mutual company and pursuant to its articles of incorporation or bylaws, is considered to be a holder of a membership interest in the mutual company. A person insured under a group policy is not a member. On and after the effective date of a reorganization under this chapter, member means a member of the mutual holding company created in the reorganization.
(e) “Mutual holding company” or “MHC” means a mutual corporation resulting from a reorganization of a mutual company under this chapter.
(f) “Mutual company” means a domestic mutual insurance company organized under chapter 50, 54, or 58.
(g) “Plan of reorganization” or “plan” means a plan adopted pursuant to this chapter by the board of directors of a mutual company for the reorganization of the mutual company simultaneously into both a mutual holding company and a converted company existing as a direct or indirect stock subsidiary of the mutual holding company.
(h) “Policy” means a group or individual insurance policy or contract issued by a mutual company. The term policy does not include a certificate of insurance issued in connection with a group policy or contract.
(i) “Policyholder” means the holder of a policy other than a reinsurance contract.