In a letter Wednesday to Ken Ross, commissioner of the Office of Financial Insurance Regulation, with copies to Cox and key legislators, Kurt Gallinger, chairman of the Michigan Insurance Coalition, said state law prohibits transfers to buy companies that sell anything other than disability insurance.
Blue Cross has called the transfer legal.
The state Workers Compensation Board issued a stop-work order at the Williamsburg facility after learning the factory's owner, Erasmo Ponce, was not offering workers' compensation insurance to his employees.
The state announced Friday a final decision to adopt an average 12 percent rate hike, or 6.5 cents per hour, for workers' compensation insurance.
