1. (1) The director may disapprove an application for a certificate of self- insurance if the applicant fails to possess a qualification for the issuance of a certificate of self-insurance as set forth in R 257.532.

2. (2) The director may cancel a certificate of self-insurance if any of the following provisions applies to a self-insurer:

   1. (a) Fails to pay a judgment that is rendered against the self-insurer upon a cause of action arising out of the ownership, operation, maintenance, or use of any motor vehicle, as defined in the Michigan vehicle code or the no-fault law, within 30 days after the judgment becomes final.
   2. (b) Fails to pay an assessment bill that is issued pursuant to the provisions of section 3171 of the no-fault law within 30 days after billing.
   3. (c) Fails to pay personal protection insurance benefits to which a claimant is entitled under the no-fault law within 30 days after the receipt of reasonable proof of the loss and the amount of loss.
   4. (d) Files a petition in bankruptcy or is declared bankrupt by a federal court.
   5. (e) Is placed in receivership, declared insolvent, or ordered dissolved or liquidated by a state court or has a financial manager appointed by the governor or any substantially equivalent action taken.
   6. (f) Commits an act that would jeopardize the self-insurer's ability to pay claims that are filed with, or judgments that are obtained against, the self-insurer.
   7. (g) Fails to continuously possess any qualification for a certificate of self-insurance as described in R 257.532 or fails to comply with any other provision of these rules.
   8. (h) The director has reasonable grounds to believe that any information that is submitted by an applicant or self-insurer and that is contained in any application, renewal, document, statement, or report that is required pursuant to these rules is false.

History: 1993 AACS; 2018 AACS.