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Court Puts Michigan Health Carrier In Rehabilitation

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A state court judge in Michigan has issued an order that puts the state’s Office of Financial and Insurance Regulation in charge of rehabilitating American Community Mutual Insurance Company.

American Community, Livonia, Mich. – which was founded in 1938 and is one of the oldest health insurers in the United States – will continue to cover existing policyholders and pay their claims, but it will not accept applications for new business, officials say.

American Community agents will receive all commissions earned on or after April 8, and American Community vendors will be paid for charges incurred on or after April 8, officials say.

Agents and vendors trying to collect commissions or other fees earned before April 8 must go through a claims process, officials say.

Individual and group policyholders should continue to pay their premiums, and American Community will accept applications from renewals from existing individual policyholders, officials say.

Employers “will continue to be billed for premiums as long as your policy is effective with American Community,” officials say. “The rehabilitator or deputy rehabilitators may choose whether to renew your policy with American Community at their discretion.”

Michigan law requires doctors to handle American Community insurance the same way they handled it before the company entered rehabilitation.

Judge William Collette, a judge in the Ingham County, Mich., circuit court, is in charge of the rehabilitation.

Ken Ross, the Michigan insurance commissioner, is the rehabilitator.

The Michigan insurance office has named James Gerber and Mike Hogan to be the deputy rehabilitators in charge of managing the rehabilitation.

More information about the American Community rehabilitation process is available here.


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