Favorable insolvency law amendments signed in to law in Michigan
Amendments to the Michigan guaranty fund act and liquidation act were signed in to law on September 15. This package of amendments is a very positive development for Michigan and other states which may have claims in a Michigan insolvency proceeding:
Notably the liquidation act amendments include the following:
• Revisions to permit the guaranty association to receive confidential information regarding a supervision proceeding
• A large deductible provision patterned very closely to the NCIGF model
• A strengthened early access provision
Guaranty fund act amendments include the following:
• A provision giving the GA the right to obtain claim records in the custody of a TPA
• A provision giving the GA the Two part trigger language embodied in the NCIGF model – that is an order of liquidation with a finding of insolvency.
• New net worth language excluding first and third party claims of insureds with net worth of 25 million or more.
The following documents will give more information regarding the new law amendments:
