Michigan Administrative Code
Department - Insurance and Financial Services
Insurance
Certificates of No-Fault Self-Insurance
Section R. 257.538 - Denial or cancellation of certificate; certificates issued before effective date of rules
Universal Citation: MI Admin Code R. 257.538
Current through Vol. 24-04, March 15, 2024
Rule 8.
(1) The director may disapprove an application for a certificate of self-insurance if the applicant fails to possess a qualification for the issuance of a certificate of self-insurance as set forth in R 257.532.
(2) The director may cancel a certificate of self-insurance if any of the following provisions applies to a self-insurer:
(a) Fails to pay a judgment that is rendered
against the self-insurer upon a cause of action arising out of the ownership,
operation, maintenance, or use of any motor vehicle, as defined in the Michigan
vehicle code or the no-fault law, within 30 days after the judgment becomes
final.
(b) Fails to pay an
assessment bill that is issued pursuant to the provisions of section 3171 of
the no-fault law within 30 days after billing.
(c) Fails to pay personal protection
insurance benefits to which a claimant is entitled under the no-fault law
within 30 days after the receipt of reasonable proof of the loss and the amount
of loss.
(d) Files a petition in
bankruptcy or is declared bankrupt by a federal court.
(e) Is placed in receivership, declared
insolvent, or ordered dissolved or liquidated by a state court or has a
financial manager appointed by the governor or any substantially equivalent
action taken.
(f) Commits an act
that would jeopardize the self-insurer's ability to pay claims that are filed
with, or judgments that are obtained against, the self-insurer.
(g) Fails to continuously possess any
qualification for a certificate of self-insurance as described in
R 257.532 or fails to comply with any
other provision of these rules.
(h)
The director has reasonable grounds to believe that any information that is
submitted by an applicant or self-insurer and that is contained in any
application, renewal, document, statement, or report that is required pursuant
to these rules is false.
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