June 20, 2006, Introduced by Rep. Mortimer and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 7918 (MCL 500.7918), as amended by 2001 PA 182.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7918. (1) The association may borrow funds when necessary
to implement this act.
(2) The association, either in its own name or through a
servicing facility, may sue or be sued, and may use the courts to
assert or defend any rights the association may have under this
chapter, to the extent necessary to fully exercise its rights and
perform its duties under, and to implement, this chapter.
(3) The association may retain and employ legal counsel in its
discretion to represent the association in all respects.
(4) The association may bring an action against any third
party administrator, agent, attorney, or other representative of
the insolvent insurer to obtain custody and control of all claims
information, including all files, records, and electronic data
related to an insolvent company that are appropriate or necessary
for the association, or a similar association in other states, to
carry out its duties under this act. The association shall have the
absolute right through emergency equitable relief to obtain custody
and control of all claims information in the custody or control of
the third party administrator, agent, attorney, or other
representative of the insolvent insurer, regardless of where the
information may be physically located. In bringing the action, the
association is not subject to any defense, lien, possessory or
otherwise, or other legal or equitable ground for refusal to
surrender claims information that might be asserted against the
liquidator of the insolvent insurers. If litigation is necessary
for the association to obtain custody of the claims information
requested and it results in the relinquishment of claims
information to the association after refusal to provide the
information in response to a written demand, the court shall award
the association its costs, expenses, and reasonable attorney fees
incurred in bringing the action. This section does not affect the
rights and remedies that the custodian of the claims information
may have against the insolvent insurers, so long as those rights
and remedies do not conflict with the rights of the association to
custody and control of the claims information under this act.
(5) (4)
Upon request of the commissioner, consent of the
association, and appointment by the court, the association may act
as deputy receiver in delinquency proceedings under chapter 81.
Enacting section 1. This amendatory act does not take effect
unless all of the following bills of the 93rd Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 6235(request no.
07127'06).
(b) Senate Bill No.____ or House Bill No. 6234(request no.
07128'06).
(c) Senate Bill No.____ or House Bill No. 6232(request no.
07130'06).
(d) Senate Bill No.____ or House Bill No. 6231(request no.
07131'06).
(e) Senate Bill No.____ or House Bill No. 6230(request no.
07132'06).
(f) Senate Bill No.____ or House Bill No. 6229(request no.
07133'06).
(g) Senate Bill No.____ or House Bill No. 6228(request no.
07134'06).
(h) Senate Bill No.____ or House Bill No. 6227(request no.
07135'06).
(i) Senate Bill No.____ or House Bill No. 6226(request no.
07136'06).
(j) Senate Bill No.____ or House Bill No. 6225(request no.
07137'06).
(k) Senate Bill No.____ or House Bill No. 6224(request no.
07138'06).
(l) Senate Bill No.____ or House Bill No. 6223(request no.
07139'06).