Michigan Compiled Laws

Mich. Comp. Laws § 500.7945 (2026)

Stay of proceedings.

✓ current as of July 2026

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THE INSURANCE CODE OF 1956

Act 218 of 1956

500.7945 Stay of proceedings.

Sec. 7945.

(1) All proceedings in any court of law of this state to which the insolvent insurer is a party, or in which the insolvent insurer is obligated to defend or has assumed the defense of a party, shall be stayed for 6 months after the date a receiver is appointed, and for any additional time as determined by the court that has jurisdiction over those proceedings, to permit proper defense of all pending causes of action.

(2) All proceedings in any administrative tribunal, including worker's compensation proceedings, to which the insolvent insurer is a party, or in which the insolvent insurer is obligated to defend or has assumed the defense of a party, shall be stayed for such length of time after the date a receiver is appointed, as determined by the administrative tribunal that has jurisdiction over those proceedings. The administrative tribunal shall grant a stay for each affected proceeding, as necessary, to provide the association with sufficient time to prepare a proper defense in the proceeding.

History: Add. 1969, Act 277, Imd. Eff. Aug. 11, 1969 ;-- Am. 1980, Act 41, Imd. Eff. Mar. 17, 1980 ;-- Am. 2006, Act 359, Imd. Eff. Sept. 18, 2006

PopularName Notes:

Act 218

Notes of Decisions

Cited in 4 cases, 1986–1991 · leading case: Rodriguez v. Solar of Michigan, Inc, 478 N.W.2d 914 (Mich. Ct. App. 1991).

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Rodriguez v. Solar of Michigan, Inc, 478 N.W.2d 914 (Mich. Ct. App. 1991). “The proceedings were stayed for six months, pursuant to MCL 500.7945; MSA 24.17945 5 of the Property and Casualty Guaranty Association Act, MCL 500.”

Young v. Shull, 385 N.W.2d 789 (Mich. Ct. App. 1986). “” MCL 500.7945; MSA 24.17945. Section 7945 applies only to an insolvent insurer, defined as: *372 "[A]n insurer: (i) for which a domiciliary receiver has been appointed by a final order in this state or in a reciprocal state * * * for the liquidation of the insurer; and (ii)…”

Bodell v. Califf, 416 N.W.2d 341 (Mich. Ct. App. 1987). “In accordance with MCL 500.7945; MSA 24.17945, the trial court issued an ex parte order on December 23, 1985, staying the proceedings until June 6, 1986.”

Yeager v. Booby Trap Lounge, 429 N.W.2d 620 (Mich. Ct. App. 1988). · cites it 2× “The wcab assumed for the sake of argument that finality attached to the Missouri order on December 3, 1985, thus triggering a stay under the provisions of MCL 500.7945; MSA 24.17945. Basically, the statute provides that all proceedings in any court of law in this state in which…”

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