HB-5148, As Passed House, May 20, 2014HB-5148, As Passed Senate, May 20, 2014
November 13, 2013, Introduced by Reps. Hovey-Wright, Leonard, Glardon, Goike, Segal and Cochran and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 912 and 924 (MCL 500.912 and 500.924), as
amended by 2002 PA 462.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 912. (1) Qualified assets for purposes of section 901
include all of the following:
(a) In the bonds or other evidences of indebtedness of the
United
States , or of
the dominion of Canada, or any state,
province,
or territory, or public instrumentality of the United
States , or the dominion of Canada, or in the valid
public debt,
bonds, or other evidence of indebtedness of any city, county,
township, village, school district, or any other political
subdivision
having the power to levy taxes , or
of any state or
territory
of the United States or province of the dominion of
Canada, if the state, province, municipality, or other political
subdivision
has not, in the 3 years preceding the time of such the
investment,
failed to pay its debt or any part of its debt, or the
interest due on the debt, or any part of the interest due on the
debt. Delay, not exceeding 6 months, in the payment of any
installment
of principal or interest shall not be construed as is
not considered failure to pay.
(b) In the bonds or other evidences of indebtedness of any
political
subdivision of the United States, or any state or county
in
the United States, or any agency, public instrumentality, or
authority created by the United States, or any state or county in
the
United States , or any
political subdivision of the state or
county, if, by statutory or other legal requirements, those
obligations are payable, as to both principal and interest, from
adequate special revenues pledged or otherwise appropriated or by
law required to be provided for the purpose of payment.
(c) In governmental bonds or governmental securities of this
or any foreign government, or governmental subdivisions or
authorities or instrumentalities, not otherwise provided for in
this section subject to the limitations in subdivisions (a) and (b)
prescribed for other governmental securities.
(2) A domestic insurer's investment in governmental securities
is subject to the limitations in section 901(2)(f).
Sec. 924. Qualified assets for purposes of section 901 include
preferred stocks of any company organized under the laws of the
United
States, a state of the United States, or the District of
Columbia, Canada, or a province or territory of Canada, if the
company has continuously and regularly paid the dividends provided
for by the preferred stock during the 5 years preceding the
investment; except that with respect to preferred stocks issued
within the 5-year period, the dividend payments requirement applies
only from the date of issuance, and in those cases the net earnings
of the company and its subsidiaries available for fixed charges of
the company and its subsidiaries and the net earnings of any
predecessor organizations and their subsidiaries, if any, available
for fixed charges of the predecessor organizations and their
subsidiaries, must have averaged an amount per annum for the 5
fiscal years preceding the making of the investment at least equal
to
2 times the total of the annual interest charges, ( including
amortization
of debt discount and expense, ) and dividends
guaranteed, if any, and the preferred dividend requirement on a pro
forma basis.