Michigan Compiled Laws

Mich. Comp. Laws § 500.2318 (2026)

Facility; classification and rating systems; determination and use.

✓ current as of July 2026

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THE INSURANCE CODE OF 1956

Act 218 of 1956

500.2318 Facility; classification and rating systems; determination and use.

Sec. 2318.

(1) The classification and rating systems of the facility shall be determined by the designated advisory organization, subject to the requirements of this chapter and the approval of the commissioner.

(2) Every participating member designated to act on behalf of the facility shall be authorized to use the classification and rating systems of the facility on business placed through the facility and shall not use other rates for worker's compensation insurance placed through the facility.

History: Add. 1982, Act 8, Eff. Jan. 1, 1983

PopularName Notes:

Act 218

Notes of Decisions

Cited in 2 cases, 2003–2015 · leading case: Max Trucking, LLC v. Liberty Mut. Ins. Corp., 802 F.3d 793 (6th Cir. 2015).

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Max Trucking, LLC v. Liberty Mut. Ins. Corp., 802 F.3d 793 (6th Cir. 2015). “Mich. Comp. Laws § 500.2318 . Thus, Appellant’s argument that such standards were not contained in the contract, and thus it was not on notice of its responsibilities, is unavailing.”

Wausau Underwriters Ins. Co. v. Vulcan Dev., Inc., 323 F.3d 396 (6th Cir. 2003). “See also Mich. Comp. Laws § 500.2318 . The final premium is determined by an audit of the insured’s actual payroll records at the end of the policy period.”

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