Michigan Laws 500.1821 – Risk retention group chartered or doing business in state; prohibited conduct
Current as of: 2024 | Check for updates
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A risk retention group chartered or doing business in this state shall not do any of the following:
(a) Solicit or sell insurance to a person who is not eligible for membership in the group.
Terms Used In Michigan Laws 500.1821
- Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
- Chartered: means a risk retention group licensed and authorized to engage in business as a liability insurance company in a state. See Michigan Laws 500.1801
- Hazardous financial condition: means that, based on its present or reasonably anticipated financial condition, a risk retention group, although not yet financially impaired or insolvent, is unlikely to be able to meet obligations to policyholders with respect to known claims and reasonably anticipated claims or to pay other obligations in the normal course of business. See Michigan Laws 500.1801
- Risk retention group: means a corporation or other limited liability association which meets all of the following criteria:
(i) Is either of the following:
(A) Chartered in a state. See Michigan Laws 500.1801State: means any state of the United States or the District of Columbia. See Michigan Laws 500.1801
(b) Solicit or sell insurance if the risk retention group is in a hazardous financial condition or is financially impaired.
(c) Have as a member or owner, whether directly or indirectly, an insurance company, unless all members of the risk retention group are insurance companies.
(d) Issue an insurance policy with terms which provide, or could be construed to provide, coverage prohibited generally by law or declared unlawful by a final and binding decision of an appellate court that has considered the matter.