THE INSURANCE CODE OF 1956
Act 218 of 1956
500.7911 Property and casualty guaranty association; membership; exception; laws to which association subject.
Sec. 7911.
(1) To implement this chapter, there shall be maintained within this state, by all insurers authorized to transact in this state insurance other than life or disability insurance, except the Michigan basic property insurance association created pursuant to section 2920, an association of those insurers to be known as the property and casualty guaranty association, hereafter referred to as the "association". Each insurer shall be a member of the association as a condition of its authority to continue to transact insurance in this state.
(2) An insurer from which insurance has been or may be procured in this state solely by virtue of chapter 19 shall not be considered to be an insurer authorized to transact insurance in this state for the purposes of this chapter.
(3) The association is subject to the requirements of this chapter and chapter 81 but is not subject to the other chapters of this act. The association shall be subject to other laws of this state to the extent that it would be subject to those laws if it were an insurer organized and operating under chapter 50, to the extent that those other laws are consistent with this chapter.
History: Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969 ;-- Am. 1972, Act 207, Imd. Eff. June 30, 1972 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980 ;-- Am. 1982, Act 502, Eff. Mar. 30, 1983 ;-- Am. 1990, Act 137, Eff. June 29, 1990 ;-- Am. 1993, Act 200, Eff. Dec. 28, 1994 ;-- Am. 2006, Act 365, Imd. Eff. Sept. 18, 2006
Compiler's Notes:
Act 143 of 1993, which amended this section, was submitted to the people by referendum petition (as Proposal C) and rejected by a majority of the votes cast at the November 8, 1994, general election.
Section 3 of Act 200 of 1993 provides as follows:
“Section 3. This amendatory act shall not take effect unless the state administrative board certifies in writing to the secretary of state by December 31, 1994 that an agreement for the transfer of all or substantially all of the assets and the assumption of all or substantially all of the liabilities of the state accident fund has been consummated with a permitted transferee pursuant to the requirements of section 701a of the worker's disability compensation act of 1969, Act No. 317 of the Public Acts of 1969, being section 418.701a of the Michigan Compiled Laws.”
PopularName Notes:
Act 218
Notes of Decisions
Felsner v. Mcdonald Rent-a-car, Inc, 434 N.W.2d 178 (Mich. Ct. App. 1988).
· cites it 2× “The sole issue presented on appeal is whether plaintiff was precluded, under Michigan law, from naming the association as a party defendant in the original tort action.”
Monical Mach. Co. v. Michigan Prop. & Cas. Guar. Ass'n, 473 N.W.2d 808 (Mich. Ct. App. 1991).
“Defendant responds that the trial court properly granted summary disposition because a blanket claim timely filed but amended after the deadline set by the domiciliary state does not constitute a covered claim under the mpcgaa.”
Smith v. Parkland inn/Cas. Reciprocal Exch., 760 N.W.2d 554 (Mich. Ct. App. 2008).
· cites it 2× “MCL 500.7911(1). Each insurer is a member of the association as a condition of its authority to transact insurance business in this state.”
Gary Mathis v. Auto Owners Ins. Co. (Mich. Ct. App. 2021).
· cites it 3× “See MCL 500.7911. The MPCGA is a legislatively created means of paying and discharging obligations of insolvent insurers.”
Justin Childers v. Progressive Marathon Ins Co (Mich. 2024).
· cites it 3× “” Metry, Metry, Sanom & Ashare v Mich Prop & Cas Guaranty Ass’n, 403 Mich 117 , 118- 119; 267 NW2d 695 (1978); see also MCL 500.7911(1). All applicable Michigan insurers are members of the MPCGA “as a condition of [their] authority to continue to transact insurance in this state.”
— Mich. Comp. Laws § 500.7911(1) — 4 cases
Smith v. Parkland inn/Cas. Reciprocal Exch., 760 N.W.2d 554 (Mich. Ct. App. 2008).
“MCL 500.7911(1). Each insurer is a member of the association as a condition of its authority to transact insurance business in this state.”
Justin Childers v. Progressive Marathon Ins Co (Mich. 2024).
“” Metry, Metry, Sanom & Ashare v Mich Prop & Cas Guaranty Ass’n, 403 Mich 117 , 118- 119; 267 NW2d 695 (1978); see also MCL 500.7911(1). All applicable Michigan insurers are members of the MPCGA “as a condition of [their] authority to continue to transact insurance in this state.”
Gary Mathis v. Auto Owners Ins. Co. (Mich. Ct. App. 2021).
“See MCL 500.7911. The MPCGA is a legislatively created means of paying and discharging obligations of insolvent insurers.”
— Mich. Comp. Laws § 500.7911(2) — 2 cases
— Mich. Comp. Laws § 500.7911(3) — 4 cases
Felsner v. Mcdonald Rent-a-car, Inc, 434 N.W.2d 178 (Mich. Ct. App. 1988).
“The sole issue presented on appeal is whether plaintiff was precluded, under Michigan law, from naming the association as a party defendant in the original tort action.”
Smith v. Parkland inn/Cas. Reciprocal Exch., 760 N.W.2d 554 (Mich. Ct. App. 2008).
“MCL 500.7911(1). Each insurer is a member of the association as a condition of its authority to transact insurance business in this state.”
Gary Mathis v. Auto Owners Ins. Co. (Mich. Ct. App. 2021).
“See MCL 500.7911. The MPCGA is a legislatively created means of paying and discharging obligations of insolvent insurers.”
Justin Childers v. Progressive Marathon Ins Co (Mich. 2024).
“” Metry, Metry, Sanom & Ashare v Mich Prop & Cas Guaranty Ass’n, 403 Mich 117 , 118- 119; 267 NW2d 695 (1978); see also MCL 500.7911(1). All applicable Michigan insurers are members of the MPCGA “as a condition of [their] authority to continue to transact insurance in this state.”
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