P&CMImedium
A Michigan-domiciled P&C insurer is found financially impaired. Under MCL 500.8101+, what is the typical first formal court-supervised remedy the DIFS Director seeks?
AImmediate Chapter 7 bankruptcy in federal court
Rehabilitation, with the Director as rehabilitator
CForced merger with an out-of-state guaranty fund
DConservatorship by the Michigan Catastrophic Claims Association
Why this is the answer
Michigan's Uniform Insurers Liquidation Act (Chapter 81 of MCL 500) provides a tiered receivership scheme: rehabilitation, conservation, then liquidation. The Director petitions the circuit court and is appointed receiver.
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