Michigan Laws 500.8101 – Construction and purpose of chapter
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(1) This chapter shall not be interpreted to limit the powers granted the commissioner by other provisions of this code.
(2) This chapter shall be liberally construed to effect the purpose stated in subsection (3).
Terms Used In Michigan Laws 500.8101
- Commissioner: means the director. See Michigan Laws 500.102
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Insurer: means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other legal entity, engaged or attempting to engage in the business of making insurance or surety contracts. See Michigan Laws 500.106
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- State: means a state, district, or territory of the United States. See Michigan Laws 500.8103
(3) The purpose of this chapter is the protection of the interests of insureds, claimants, creditors, and the public with minimum interference with the normal prerogatives of the owners and managers of insurers, through the following:
(a) Early detection of potentially dangerous conditions in an insurer and prompt application of appropriate corrective measures.
(b) Improved methods for rehabilitating insurers, involving the cooperation and management expertise of the insurance industry.
(c) Enhanced efficiency and economy of liquidation to minimize legal uncertainty and litigation.
(d) Equitable apportionment of unavoidable loss.
(e) Lessening the problems of interstate rehabilitation and liquidation by facilitating cooperation between states in the liquidation process and by extending the scope of personal jurisdiction over debtors of the insurer outside this state.
(f) Regulation of the insurance business relating to delinquency procedures and rules on the entire insurance business.
(4) This chapter does not apply to insurers that are subject to delinquency proceedings commenced prior to January 1, 1990. Delinquency proceedings commenced prior to January 1, 1990, shall be conducted pursuant to former chapter 78.