500.8119 Order of liquidation; continuation of policies in force; termination of coverages.
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500.8119 Order of liquidation; continuation of policies in force; termination of coverages.
Sec. 8119.
(1)All policies, other than life or health insurance or annuities, in effect at the time of issuance of an order of liquidation shall continue in force only for the lesser of:
(a)A period of 30 days from the date of entry of the liquidation order.
(b)The expiration of the policy coverage.
(c)The date the insured replaces the insurance coverage with equivalent insurance in another insurer or otherwise terminates the policy.
(d)The date the liquidator effects a transfer of the policy obligation pursuant to section 8121(1)(h).
(2)An order of liquidation under section 8118 shall terminate coverages at the time specified in subsection
(1)for purposes of any other statute.
(3)Policies of life or health insurance or annuities shall continue in force for such period and under such terms as is provided for by an applicable guaranty association or foreign guaranty association.
(4)Policies of life or health insurance or annuities or any period or coverage of such policies not covered by a guaranty association or foreign guaranty association shall terminate under subsections
(1)and (2).
History: Add. 1989, Act 302, Imd. Eff. Jan. 3, 1990
Popular Name: Act 218