MI SB0712

Modifies section 8182 to allow the director to disapprove or delay assessments of reserve deficiencies by fraternal benefit societies, with a 90-day notice requirement unless the director approves an earlier date.

Creates section 8199b authorizing the director to declare a domestic society in hazardous condition and order transfer of all members, certificates, and assets to another fraternal benefit society or insurer through merger, consolidation, or assumption.

Permits transfer agreements to be approved by majority board vote, suspending requirements for member or supreme governing body approval, with member notification required within 30 days of director approval.

Establishes section 8199c making failure to comply with director orders or remedy hazardous conditions grounds for rehabilitation or liquidation of fraternal benefit societies.

Restricts assessments during liquidation to only those necessary for Class 1 and Class 2 creditors, prohibits assessments for lower-priority claims, and requires liquidators to attempt transferring policies to qualified fraternal benefit societies or life insurers.