Bill Text: MI SB0825 | 2009-2010 | 95th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance; insurers; cap on risk or hazard loss; increase. Amends sec. 640 of 1956 PA 218 (MCL 500.640).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2010-12-29 - Assigned Pa 0338'10 With Immediate Effect [SB0825 Detail]

Download: Michigan-2009-SB0825-Introduced.html

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SENATE BILL No. 825

 

 

September 15, 2009, Introduced by Senator ALLEN and referred to the Committee on Economic Development and Regulatory Reform.

 

 

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending section 640 (MCL 500.640), as amended by 1992 PA 182.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 640. An insurer transacting business in this state shall

 

not expose itself to any loss on any 1 risk or hazard in an amount

 

exceeding 10% 50% of its paid-up capital and surplus. However, no

 

portion of a risk or hazard that has been reinsured in an insurer

 

licensed to do insurance business in this state shall be included

 

in determining the limitation of risk prescribed in this section.