Insurance: fraternal benefit societies; liquidation and rehabilitation procedures; modify. Amends sec. 8182 of 1956 PA 218 (MCL 500.8182) & adds secs. 8199b & 8199c.

This bill updates Michigan laws governing fraternal benefit societies by clarifying how their benefit contracts are formed and modified. It establishes that changes to a society's rules made after a member joins will apply to them, unless those changes reduce the benefits originally promised. The legislation also outlines procedures for societies to require members to pay a share of financial deficits if the society's reserves become impaired. Additionally, it grants state officials the authority to order a struggling society to transfer its members and assets to another insurer or society without waiting for member approval. These measures aim to provide clearer guidelines for managing member contracts and ensuring financial stability within these specific insurance organizations.