500.5509 Certificate of division; contents; effective date.

248 words·~1 min read·/mi/chapter-500/500-5509

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Sec. 5509.

(1)After a plan of division has been adopted and approved under sections 5503 to 5507, an officer or duly authorized representative of the dividing insurer shall sign a certificate of division. The certificate of division is a public document.

(2)The certificate of division must set forth all of the following:

(a)The name of the dividing insurer.

(b)A statement disclosing whether the dividing insurer will survive the division.

(c)The name of each new insurer that will be created by the division.

(d)The date on which the division is to be effective, which must not be more than 90 days after the dividing insurer has filed the certificate of division with the department.

(e)A statement that the division was approved by the director of the department in accordance with section 5507.

(3)The articles of incorporation and bylaws of each new insurer must satisfy the requirements of the laws of this state.

(4)A certificate of division is effective when filed with the department as provided in this section or on another date specified in the plan of division, whichever is later. However, a certificate of division must become effective not more than 90 days after the related plan of division has been approved by the department. A division is effective when the relevant certificate of division is effective.

History: Add. 2018, Act 421 , Imd. Eff. Dec. 20, 2018

Popular Name: Act 218