SENATE BILL No. 1013

 

 

February 25, 2004, Introduced by Senators SCHAUER and EMERSON and referred to the Committee on Appropriations.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1995 PA 29, entitled                                              

                                                                                

    "Uniform unclaimed property act,"                                           

                                                                                

    by amending section 19 (MCL 567.239), as amended by 1997 PA 195,            

                                                                                

    and by adding section 8a.                                                   

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 8a.  (1) Unclaimed property payable or distributable in                

                                                                                

2   conjunction with the demutualization of an insurance company is             

                                                                                

3   presumed abandoned 2 years after the date of demutualization,               

                                                                                

4   unless the owner, during the 2 years following the date of                  

                                                                                

5   demutualization, has communicated with the holder either in                 

                                                                                

6   writing or through other communication that is evidenced by a               

                                                                                

7   contemporaneous record maintained by the holder.                            

                                                                                

8       (2) A holder of unclaimed property described in subsection                  

                                                                                

9   (1) shall file an initial 1-time report of unclaimed                        

                                                                                

10  demutualization proceeds not later than May 1, 2004 for the                 

                                                                                


                                                                                

1   1-year period ending December 31, 2003.                                     

                                                                                

2       (3) As used in this section, "demutualization" means the                    

                                                                                

3   payment of consideration for the relinquishment of a mutual                 

                                                                                

4   membership interest in a mutual insurance company, regardless if            

                                                                                

5   undertaken in conjunction with a plan of demutualization,                   

                                                                                

6   liquidation, merger, or other form of reorganization.                       

                                                                                

7       Sec. 19.  (1) The administrator shall cause a notice to be                  

                                                                                

8   published not later than November 1 of the year immediately                 

                                                                                

9   following the report required by section 18 in a newspaper of               

                                                                                

10  general circulation in the county of this state in which is                 

                                                                                

11  located the last known address of any person named in the                   

                                                                                

12  notice.  If no address is listed or the address is outside this             

                                                                                

13  state, the notice  must  shall be published in the county in                

                                                                                

14  which the holder of the property has its principal place of                 

                                                                                

15  business within this state or another county as determined by the           

                                                                                

16  administrator.                                                              

                                                                                

17      (2) The published notice shall be entitled "notice of names                 

                                                                                

18  of persons appearing to be owners of abandoned property" and                

                                                                                

19  contain all of the following:                                               

                                                                                

20      (a) The names, in alphabetical order, of persons listed in                  

                                                                                

21  the report and entitled to notice within the county as specified            

                                                                                

22  in subsection (1).                                                          

                                                                                

23      (b) A statement that information concerning the property may                

                                                                                

24  be obtained by any person possessing an interest in the property            

                                                                                

25  by addressing an inquiry to the administrator.                              

                                                                                

26      (c) A statement informing an owner of property held by the                  

                                                                                

27  administrator on how to file a claim with the administrator to              


                                                                                

1   receive his or her property.                                                

                                                                                

2       (3) The administrator is not required to publish in the                     

                                                                                

3   notice any items of less than $50.00 unless the administrator               

                                                                                

4   considers their publication to be in the public interest.                   

                                                                                

5       (4) This section is not applicable to sums payable on                       

                                                                                

6   travelers checks, money orders, and other written instruments               

                                                                                

7   presumed abandoned under section 5.