SENATE BILL NO. 784


   October 5, 1999, Introduced by Senators BULLARD and DUNASKISS 
        and referred to the Committee on Financial Services.



        A bill to amend 1956 PA 218, entitled

   "The insurance code of 1956,"

   by amending section 5104 (MCL 500.5104), as added by 1993 PA

   200.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 5104.  (1) Subject to the requirements of this act

 2    applicable to domestic stock insurers, domestic mutual insurers,

 3    reciprocals or inter-insurance exchanges, and the further

 4    requirements of this chapter, 13 or more persons may organize a

 5    stock insurer or 20 or more persons may organize a mutual insurer

 6    for the purpose of transacting any or all of the following kinds

 7    of insurance:  property, marine, inland navigation and transpor-

 8    tation, casualty, or fidelity and surety, all as defined in

 9    chapter 6.  Once organized and authorized, the acquiring insurer

10     shall be  IS subject to all applicable provisions
             of this act.


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 1         (2) If the acquiring insurer is a domestic stock insurer

 2    owned by a nonprofit health care corporation formed pursuant to

 3    the nonprofit health care corporation reform act,  Act No.
             350 of

 4     the Public Acts of 1980, being sections 550.1101 to 550.1704
                       of

 5     the Michigan Compiled Laws  1980 PA 350, MCL
                       550.1101 TO

 6    550.1704, then the acquiring insurer under this chapter shall

 7    only transact worker's compensation insurance and employer's

 8    liability insurance,  and  TRANSACT DISABILITY
             INSURANCE LIMITED

 9    TO REPLACEMENT OF LOSS OF EARNINGS, act as an administrative

10    services organization for an approved self-insured worker's com-

11    pensation plan, OR ACT AS A DISABILITY INSURANCE PLAN LIMITED TO

12    REPLACEMENT OF LOSS OF EARNINGS.

13         Enacting section 1.  This amendatory act does not take

14    effect unless Senate Bill No. 783

15                           of the 90th Legislature is enacted into

16    law.

























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