A unit of UnitedHealth Group Inc. has agreed to provide health coverage for 42,000 policyholders who have American Community Mutual Insurance Company individual medical coverage.

A transition plan agreement will give 42,000 holders of coverage from American Community, Livonia, Mich., the option of transferring their coverage to Golden Rule Insurance Company, Indianapolis, on a guaranteed coverage basis, according to officials at the Michigan Office of Financial and Insurance Regulation.

Ken Ross, the Michigan insurance commissioner, is the rehabilitator of American Community.

The Michigan state court order approving the transition plan affects American Community policyholders in 14 states outside Michigan as well as policyholders in Michigan, Ross says in a statement.

Enrollees in Golden Rule plans have access to the provider network managed by UnitedHealthcare, another unit of Golden Rule’s parent, UnitedHealth, Minnetonka, Minn. (NYSE:UNH).