(a) Any change in the officers, directors, or managers of the captive insurance company.
(b) Insolvency or impairment of capital or retained earnings.
(c) Failure to meet the requirements of section 4611 of the act, MCL 500.4611, if
applicable.
(d) The suspension or revocation of the certificate of authority or equivalent authorization
of a branch captive insurance company in the jurisdiction in which the company was formed.
(e) A captive insurance company that is a limited liability company is no longer in good
standing under section 207a of 1993 PA 23, MCL 450.4207a.
(f) The captive insurance company fails to remove or discharge an officer or director of
the company within 30 days after the director of the department of insurance and financial
services makes a written request that the officer or director of the company should be
removed or discharged.
(g) The captive insurance company fails to pay any final judgment rendered against it in
this state on any policy, bond, recognizance, or undertaking issued or guaranteed by it within
a reasonable period of time after entry of the final judgment.
History: 2015 AACS.
R 500.110 Investigative hearings.
Rule 10. (1) The director may initiate an investigation, undertake an examination, or take
such other action as the director, in the exercise of discretion, determines is necessary or
appropriate to assure the holder of a limited certificate of authority complies with all
applicable provisions of the act.
(2) The director may conduct hearings for any of the following:
(a) To investigate an applicant, an application, or a holder of a limited certificate of
authority.
(b) To gather information in furtherance of acting on an application for a limited
certificate of authority.
(c) To investigate alleged violations of the applicable provisions of the act or these rules
by a holder of a limited certificate of authority.
(3) The director may require captive managers, officers, directors, shareholders, members
of an applicant, or holders of a limited certificate of authority to testify or to produce
documents, records, or other materials at a proceeding conducted under this rule.
(4) The director may issue subpoenas for the production of persons, documents, or other
items at a proceeding conducted under this rule.
(5) All testimony at proceedings conducted under this rule shall be given under oath or
affirmation.
(6) All proceedings under this rule shall be conducted in compliance with the contested
hearing procedures of the administrative procedures act, 1969 PA 306, MCL 24.201 to
24.328, and R 500.2101 to R 500.2142.
(7) The director shall direct the applicant or holder of a limited certificate of authority to
pay the expenses and charges associated with an investigative hearing.
History: 2015 AACS.
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