SENATE BILL No. 604

July 11, 2001, Introduced by Senator GARCIA and referred to the Committee on Financial

Services.

A bill to amend 1956 PA 218, entitled

"The insurance code of 1956,"

by amending sections 2468 and 2662 (MCL 500.2468 and 500.2662).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 2468. (1) The commissioner shall, at least once in 5

2 years, MAY make or cause to be made an examination of each

3 rating organization licensed in this state as provided in UNDER

4 section 2436, and he may, as often as he may deem it expedient,

5 make or cause to be made an examination of each advisory organi-

6 zation referred to in section 2462, and of each group,

7 association, or other organization referred to in section 2464.

8 The reasonable costs of any such THE examination shall be paid

9 by the rating organization, advisory organization, or group,

10 association, or other organization examined upon presentation to

11 it of a detailed account of such THOSE costs. The officer,

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1 manager, agents, and employees of such THE rating organization,

2 advisory organization, or group, association, or other organiza-

3 tion may be examined at any time under oath and shall exhibit all

4 books, records, accounts, documents, or agreements governing its

5 method of operation. Any such THE examination shall be IS

6 subject to the procedure provided for in section 222 , relating

7 to examinations of insurance companies.

8 (2) In lieu of any such examination INSTEAD OF AN EXAMINA-

9 TION UNDER SUBSECTION (1), the commissioner may accept the report

10 of an examination made by the insurance supervisory official of

11 another state, pursuant to the laws of such THAT state.

12 Sec. 2662. (1) The commissioner shall, at least once in 5

13 years, MAY make or cause to be made an examination of each

14 rating organization licensed in this state as provided in UNDER

15 section 2630, and he may, as often as he may deem it expedient,

16 make or cause to be made an examination of each advisory organi-

17 zation referred to in section 2654, and of each group,

18 association, or other organization referred to in section 2658.

19 The reasonable costs of any such THE examination shall be paid

20 by the rating organization, advisory organization, or group,

21 association, or other organization examined upon presentation to

22 it of a detailed account of such THOSE costs. The officers,

23 managers, agents, and employees of such THE rating organiza-

24 tion, advisory organization, or group, association, or other

25 organization may be examined at any time under oath and shall

26 exhibit all books, records, accounts, documents, or agreements

27 governing its method of operation. Any such THE examination

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1 shall be IS subject to the procedure provided for in section

2 222 relating to examinations of insurance companies.

3 (2) In lieu of any such examination INSTEAD OF AN EXAMINA-

4 TION UNDER SUBSECTION (1), the commissioner may accept the report

5 of an examination made by the insurance supervisory official of

6 another state, pursuant to the laws of such THAT state.

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