TAKEOVER OF INSURANCE COMPANY S.B. 1174:
SUMMARY AS ENACTED
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Senate Bill 1174 (as enacted) PUBLIC ACT 61 of 2010
Sponsor: Senator Gerald Van Woerkom
Senate Committee: Economic Development and Regulatory Reform
House Committee: Insurance
Date Completed: 1-20-11
CONTENT
The bill amended the Insurance Code to require that, until May 1, 2012, for a domestic property and casualty insurer having 200 or fewer employees directly or indirectly through an affiliate transacting the insurer's business, 66.67% of the outstanding voting securities approve any proposal to enter into an agreement to merge with or otherwise acquire control of the insurer or any person controlling the insurer, or, for the purpose of obtaining control, a proposal seeking the election of two or more members of the board of directors of the insurer or any person controlling the insurer, if the proposal is not supported by a majority of the insurer's board of directors.
The bill applies only to a domestic insurer that, on the bill's effective date, generates 100% of its premiums from sales in Michigan.
The bill took effect on April 30, 2010.
MCL 500.1311
Legislative Analyst: Patrick Affholter
FISCAL IMPACT
The bill will have no fiscal impact on State or local government.
Fiscal Analyst: Elizabeth Pratt
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb1174/0910