Michigan § 124.7 - Intergovernmental contract; required provisions.
Full text of Michigan Michigan Compiled Laws § 124.7 — Intergovernmental contract; required provisions., with citation guidance and answers to common questions.
§ 124.7. Intergovernmental contract; required provisions.
Any intergovernmental contract entered into under section 5 for the purpose of establishing a group self-insurance pool shall provide:
A financial plan setting forth in general terms:
The insurance coverages to be offered by the group self-insurance pool, applicable deductible levels, and the maximum level of claims which the pool will self-insure.
Subject to section 7a, the amount of cash reserves to be set aside for the payment of claims.
The amount of insurance to be purchased by the pool to provide coverage over and above the claims which are not to be satisfied directly from the pool's resources.
Subject to section 7a, the amount of aggregate excess insurance coverage to be maintained or the amount of the deposit of unimpaired surplus to be maintained with the state treasurer, which aggregate excess insurance or deposit shall be used in the event that the group self-insurance pool's resources are exhausted in a given fiscal period. The aggregate excess insurance or deposit or combination of aggregate excess insurance and deposit shall be, at a minimum, in the amount of $5,000,000.00 unless the commissioner determines a lesser amount of aggregate excess insurance would be adequate.
A plan of management which provides for all of the following:
The means of establishing the governing authority of the pool.
The responsibility of the governing authority with regard to fixing contributions to the pool, maintaining reserves, levying and collecting assessments for deficiencies, disposing of surpluses, and administering the pool in the event of termination or insolvency.
The basis upon which new members may be admitted to, and existing members may leave, the pool.
The identification of funds and reserves by exposure areas.
Other provisions necessary or desirable for the operation of the pool.
For election by pool members of a governing authority, which shall be a board of directors for the pool, a majority of whom shall be elected or appointed officers of pool members.
Frequently Asked Questions About Michigan § 124.7
What does Michigan Compiled Laws § 124.7 cover?
Section 124.7 ("Intergovernmental contract; required provisions.") is part of the Michigan Compiled Laws, the codified statutory law of Michigan. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Michigan § 124.7?
A common citation format is "Michigan Compiled Laws § 124.7" (Michigan). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Michigan law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Michigan official source linked on this page or consult a licensed Michigan attorney.
How does Michigan § 124.7 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Michigan can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Michigan.