Section 500.7702 - Purpose and construction of chapter(1) The purpose of this chapter is to protect, subject to certain limitations, persons specified in section 7704(1) against failure in the performance of contractual obligations under insurance policies and annuity contracts specified in section 7704(2) because of the impairment or insolvency of the insurer issuing the policies or contracts. To provide this protection: (a) An association of insurers is created to enable the guaranty of payment of benefits and continuation of coverages as limited in this chapter.(b) Members of the association are subject to assessment to provide funds to carry out the purpose of this chapter.(c) The association is authorized to assist the commissioner, in the prescribed manner, in the detection and prevention of insurer impairments or insolvencies.(2) This chapter shall be construed to execute the purposes provided in subsection (1).Amended by 2006, Act 671,s 2 , eff. 1/10/2007.Add. 1982, Act 194, Imd. Eff. 6/28/1982 ;--Am. 1982, Act 501, Imd. Eff. 12/31/1982 ;--Am. 1989, Act 302, Imd. Eff. 1/3/1990.