MI SB1029

Establishes a legal framework allowing domestic stock insurers to divide into 2 or more resulting insurers through a plan of division approved by the board of directors, shareholders, and the insurance department director.

Requires plan of division to specify allocation of assets, liabilities, and policy liabilities among resulting insurers, along with articles of incorporation and bylaws for any new insurers created.

Grants the director authority to approve or deny divisions based on criteria including policyholder protection, financial stability, competition effects, and solvency of resulting insurers.

Provides that resulting insurers are automatically liable only for liabilities allocated to them in the division plan, with unallocated liabilities becoming jointly and severally liable among all resulting insurers.

Allows simultaneous mergers of resulting insurers with other companies at the time a division becomes effective, and permits shareholders who dissent from a division to obtain fair value of their shares.