reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.606 - Disability Insurance; Definition.

500.606 Disability insurance; definition.
Sec. 606.
(1) "Disability" insurance is insurance against bodily injury or death by accident, or against disability on account of sickness or accident. Unless specifically excluded in chapter 34, disability insurance includes health insurance issued to an individual, family, or group, subject to limitations that are prescribed with respect to the insurance.
(2) An insured under a disability insurance policy as described in this section may be an employee of a person that is not subject to the worker's disability compensation act of 1969, 1969 PA 317, MCL 418.101 to 418.941. If the person is not subject to the worker's disability compensation act of 1969, 1969 PA 317, MCL 418.101 to 418.941, the liability may be limited to liability arising out of and in the course of the employee's employment and the premium may be paid by the employer under an agreement with the employee.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 2016, Act 276, Imd. Eff. July 1, 2016
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.607 - Group Disability Insurance; Definition.

500.607 Group disability insurance; definition.
Sec. 607.
(1) As used in this act, "group disability insurance" means voluntary disability insurance that covers 2 or more employees or members, with or without their eligible dependents, written under a master policy issued to a governmental corporation, unit, agency, or department of a governmental entity, to a corporation, copartnership, or individual employer, or, on application of an executive officer or trustee of the association, to an association that has a constitution or bylaws and that is formed in good faith for purposes other than that of obtaining insurance, and under which officers, members, employees, or classes or departments of the association may be insured for their individual benefit.
(2) Notwithstanding subsection (1), a group disability insurance policy may be issued to a trust or trustees of a fund established by 2 or more employers to insure 1 or more employees of the employers.
History:
Add. 2016, Act 276, Imd. Eff. July 1, 2016
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.608 - "Health" and "Health Insurance Policy" Defined.

500.608 "Health" and "health insurance policy" defined.
Sec. 608.
As used in this act:
(a) "Health" insurance is insurance provided under a health insurance policy.
(b) "Health insurance policy" means an expense-incurred hospital, medical, or surgical policy, certificate, or contract.
History:
Add. 2016, Act 276, Imd. Eff. July 1, 2016
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.610 - Property Insurance; Definition.

500.610 Property insurance; definition.
Sec. 610.
"Property" insurance is insurance on dwelling houses, stores, and all kinds of buildings, and upon household furniture, goods, wares and merchandise, and any other property, against loss or damage by fire, earthquake, lightning, wind and water; and also against bombardment and/or explosion, whether fire ensues or not, but not to include steam boiler or flywheel explosion; and by and with the consent of the commissioner, insurance against any other loss or damage to property or any interest therein not prohibited by the laws of this state nor exclusively delegated to any other class or kind of insurer, including loss or damage of any character, whether by reason of burglary and theft of personal property or otherwise, and whether situated at any given time at a place of residence, or in storage, transit, or upon the person of the insured or otherwise. Property insurance shall be deemed to include also marine insurance as defined in section 614, inland navigation and transportation insurance as defined in section 616, and automobile insurance (limited) as defined in section 620.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.614 - Marine Insurance; Definition.

500.614 Marine insurance; definition.
Sec. 614.
"Marine" insurance is insurance against any and all kinds of loss of or damage to:
(1) Vessels, craft, aircraft, cars, automobiles and vehicles of every kind, as well as all goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys, bullion, precious stones, securities, choses in action, evidences of debt, valuable papers, bottomry and respondentia interests, and all other kinds of property and interests therein, in respect to, appertaining to, or in connection with any and all risks or perils of navigation, transit, or transportation, including war risks, on or under any seas or other waters, on land or in the air, or while being assembled, packed, crated, baled, compressed, or similarly prepared for shipment, or while awaiting the same, or during any delays, storage, transshipment, or reshipment incident thereto, including marine builders' risks and all personal property floater risks.
(2) Person or to property in connection with or appertaining to a marine, inland marine, transit, or transportation insurance, including liability for loss of or damage to either, arising out of or in connection with the construction, repair, operation, maintenance, or use of the subject matter of such insurance (but not including life insurance or surety bonds), but shall not mean insurances against loss by reason of bodily injury to the person arising out of the maintenance, operation or use of motor vehicles.
(3) Precious stones, jewels, jewelry, gold, silver, and other precious metals whether used in business or trade or otherwise and whether the same be in course of transportation or otherwise, which shall include jeweler's block insurance.
(4) Bridges, tunnels, and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishing, fixed contents, and supplies held in storage) unless fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion are the only hazards to be covered. Piers, wharves, docks and slips, excluding the risks of fire, tornado, sprinkler leakage, hail, explosion, earthquake, riot and/or civil commotion. Other aids to navigation and transportation, including dry dock and marine railways, against all risks.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.616 - Inland Navigation and Transportation Insurance; Definition.

500.616 Inland navigation and transportation insurance; definition.
Sec. 616.
"Inland navigation and transportation" insurance is insurance upon vessels, freights, goods, wares, merchandise and other property, against the risks of inland navigation and transportation.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.618 - “Legal Expense Insurance” Defined.

500.618 “Legal expense insurance” defined.
Sec. 618.
"Legal expense insurance" is insurance which involves the assumption of a contractual obligation to reimburse the beneficiary against or pay on behalf of the beneficiary, all or a portion of his or her fees, costs, or expenses related to or arising out of services performed by or under the supervision of an attorney licensed to practice in the jurisdiction in which the services are performed. Legal expense insurance may also include provisions for basic legal services rendered to the beneficiary, by telephone or mail, by 1 or more attorneys licensed to practice in the jurisdiction in which the services are performed, none of whom are employees of or under the control of the insurer directly or indirectly. Legal expense insurance does not include the provision of or reimbursement for legal services incidental to other insurance coverages.
History:
Add. 1982, Act 501, Imd. Eff. Dec. 31, 1982
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.620 - Automobile Insurance (Limited); Definition.

500.620 Automobile insurance (limited); definition.
Sec. 620.
"Automobile insurance (limited)" is insurance upon automobiles, whether stationary or being operated under their own power, which shall include all or any of the hazards of fire, explosion, transportation, collision, loss by legal liability for damage to property resulting from the maintenance and use of automobiles, and loss by burglary or theft or both, but shall not include insurance against loss by reason of bodily injury to the person.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.625 - Automobile Passenger and Liability Coverage; Expense or Disability Coverage Included.

500.625 Automobile passenger and liability coverage; expense or disability coverage included.
Sec. 625.
Any insurer authorized to write automobile bodily injury liability insurance policies may, by an endorsement attached to or as a part of such a policy, insure any person or in behalf of any person for expense or disability including death growing out of any accidental injury incurred while driving, riding in, entering, alighting from, or through being struck by, any motor vehicle. Such coverage shall not be subject to provisions of this code otherwise applicable to disability insurance.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.628 - Surety and Fidelity Insurance; Definition.

500.628 Surety and fidelity insurance; definition.
Sec. 628.
"Surety and fidelity" insurance is to guarantee the fidelity of persons in positions of trust, private or public, and to act as surety on official bonds and for the performance of other obligations, and to indemnify banks, bankers, brokers, financial or moneyed associations, or financial or moneyed corporations, against the loss of any bills of exchange, notes, drafts, acceptances of drafts, bonds, securities, evidences of debt, deeds, mortgages, warehouse receipts, bills of lading, documents, currency, money, gold, platinum, silver and other precious metals refined or unrefined, and articles made therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, and also against loss, resulting from damage, except by fire, to the insured's premises, furnishings, fixtures, equipment, safes and vaults therein caused by burglary, robbery, holdup, theft or larceny, or attempt thereat. No such indemnity indemnifying against loss of any property as specified herein shall indemnify against the loss of any such property occurring while in the mail or in the custody or possession of a carrier for hire for the purpose of transportation, except for the purpose of transportation by an armored motor vehicle accompanied by 1 or more armed guards.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.632 - Insurers; Nonprofit Dental Care Corporation; Reinsurance; Authorization.

500.632 Insurers; nonprofit dental care corporation; reinsurance; authorization.
Sec. 632.
(1) An insurer may reinsure any risk authorized to be undertaken by it and grant reinsurance on any similar risk undertaken by any other insurer. A nonprofit dental care corporation operating under 1963 PA 125, MCL 550.351 to 550.373, may reinsure any risk authorized to be undertaken by it and grant reinsurance on any similar risk undertaken by another legal entity.
(2) Subject to chapter 58, a mutual insurance company other than life may, by policy, treaty, or other agreement, cede to or accept from any insurance company or insurer reinsurance on the whole or any part of any risk, which reinsurance must be without contingent liability or participation or membership unless provided otherwise. Reinsurance must not be effected with any company or insurer disapproved by written order of the director filed in his or her office.
(3) An insurer authorized to transact multiple lines of insurance may, except with respect to policies of life and endowment insurance and contracts for the payment of annuities and pure endowments, reinsure risks of every kind or description.
(4) Reinsurance must not be ceded to or accepted by any insurer operating under the cooperative or assessment plan. Reinsurance of any insurer operating under the cooperative or assessment plan must be ceded only to insurers authorized under this act to transact a similar kind of insurance in this state and to accept reinsurance.
(5) An insurer may be specifically authorized to accept reinsurance for kinds of risks that it does not have authority to insure directly.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1962, Act 53, Eff. Mar. 28, 1963 ;-- Am. 1966, Act 221, Imd. Eff. July 11, 1966 ;-- Am. 1994, Act 226, Imd. Eff. June 27, 1994 ;-- Am. 2016, Act 276, Imd. Eff. July 1, 2016
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.636 - Repealed. 1994, Act 226, Imd. Eff. June 27, 1994.

500.636 Repealed. 1994, Act 226, Imd. Eff. June 27, 1994.
Compiler's Notes:
The repealed section pertained to reinsurance by domestic stock or mutual insurers.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-6 - Chapter 6 Kinds of Insurance; Reinsurance; Limit of Risk (500.600...500.644) › Section 500.644 - Life, Disability, and Loss of Position Insurers; Limit of Risk.

500.644 Life, disability, and loss of position insurers; limit of risk.
Sec. 644.
For provisions as to limit of risk applicable to life, disability, and loss of position insurers operating on the cooperative or assessment plan see section 6446.
History:
1956, Act 218, Eff. Jan. 1, 1957
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.702 - Health Insurance Reserves; Determination of Adequacy; Basis.

500.702 Health insurance reserves; determination of adequacy; basis.
Sec. 702.
The adequacy of an insurer's health insurance reserves shall be determined only on the combined basis of claim, premium, and contract reserves and not on any 1 or 2 of these categories alone.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.703 - Claim Reserves and Claim Expense Reserves Required; Conditions; Testing for Adequacy and Reasonableness.

500.703 Claim reserves and claim expense reserves required; conditions; testing for adequacy and reasonableness.
Sec. 703.
(1) Claim reserves are required for all incurred but unpaid claims on all health insurance policies and certificates.
(2) Appropriate claim expense reserves are required with respect to the estimated expense of settlement of all incurred but unpaid claims on health insurance policies and certificates.
(3) All claim reserves on health insurance policies and certificates for prior valuation years are to be tested for adequacy and reasonableness consistent with claim runoff schedules in accordance with the insurer's annual statutory financial statement including consideration of any residual unpaid liability.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.705 - Disability Income Claim Reserves; Maximum Interest Rate; Morbidity Standards Specified in Rules; Exception; Group Disability Income Claim Reserves; Duration From Date of Disablement 2 Years or More but Less Than 5 Years; Basis; Request for Modification Plan Approval; Elimination Period; Measurement of Disablement Duration.

500.705 Disability income claim reserves; maximum interest rate; morbidity standards specified in rules; exception; group disability income claim reserves; duration from date of disablement 2 years or more but less than 5 years; basis; request for modification plan approval; elimination period; measurement of disablement duration.
Sec. 705.
(1) The maximum interest rate for claim reserves related to disability income is that rate specified in section 733.
(2) Minimum standards with respect to morbidity are those specified in rules promulgated pursuant to this chapter except that, at the option of the insurer, for claims with a duration from date of disablement of less than 2 years, reserves may be based upon the insurer's experience, if such experience is considered credible, or upon other assumptions designed to place a sound value on the liabilities.
(3) For group disability income claims with a duration from date of disablement of 2 years or more but less than 5 years, reserves may, with the approval of the commissioner, be based on the insurer's experience for which the insurer maintains underwriting and claim administration control. The request for approval of a plan of modification to the reserve basis shall include all of the following:
(a) An analysis of the credibility of the experience.
(b) A description of how all of the insurer's experience is proposed to be used in setting reserves.
(c) A description and quantification of the margins to be included.
(d) A summary of the financial impact that the proposed plan of modification would have had on the insurer's last filed annual statement.
(e) A copy of the approval of the proposed plan of modification by the commissioner.
(f) Any other information considered necessary by the commissioner.
(4) For health insurance policies and certificates with an elimination period, the duration of disablement shall be measured as dating from the time that benefits would have begun to accrue if there had not been an elimination period.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.707 - Health Insurance Benefits Other Than Disability Income; Claim Reserves Maximum Interest Rate; Basis of Claim Reserve.

500.707 Health insurance benefits other than disability income; claim reserves maximum interest rate; basis of claim reserve.
Sec. 707.
(1) The maximum interest rate for claim reserves related to health insurance benefits other than disability income is that rate specified in section 733.
(2) The claim reserve shall be based upon the insurer's experience if such experience is considered credible or upon other assumptions designed to place a sound value on the liabilities.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.709 - Estimation of Claim Liabilities; Methods.

500.709 Estimation of claim liabilities; methods.
Sec. 709.
Except as otherwise provided in this chapter, any generally accepted or reasonable actuarial method or combination of methods may be used to estimate all claim liabilities. The methods used for estimating liabilities generally may be aggregate methods or various reserve items may be separately valued. Approximations based on groupings and averages may also be employed, provided, however, that the adequacy of the claim reserves shall be determined in the aggregate.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.711 - Unearned Premium Reserves; Treatment of Premiums Due and Unpaid; Discount of Certain Gross Premiums Paid in Advance.

500.711 Unearned premium reserves; treatment of premiums due and unpaid; discount of certain gross premiums paid in advance.
Sec. 711.
(1) Unearned premium reserves are required for all health insurance policies and certificates with respect to the period of coverage for which premiums, other than premiums paid in advance, have been paid beyond the date of valuation.
(2) If premiums due and unpaid are carried as an asset, such premiums shall be treated as premiums in force, subject to unearned premium reserve determination. The value of unpaid commissions, premium taxes, and the cost of collection associated with due and unpaid premiums shall be carried as an offsetting liability.
(3) The gross premiums paid in advance for a period of coverage commencing after the next premium due date that follows the date of valuation may be appropriately discounted to the valuation date and shall be held either as a separate liability or as an addition to the unearned premium reserve that would otherwise be required as a minimum.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.713 - Minimum Unearned Premium Reserve; Basis; Sum of Unearned Premium and Contract Reserves; Limitation.

500.713 Minimum unearned premium reserve; basis; sum of unearned premium and contract reserves; limitation.
Sec. 713.
(1) The minimum unearned premium reserve with respect to any health insurance policy or certificate is the pro rata unearned modal premium that applies to the premium period beyond the valuation date, with such premium determined on the basis of either of the following:
(a) The valuation net modal premium on the contract reserve basis applying to the health insurance policy or certificate.
(b) The gross modal premium for the health insurance policy or certificate if no contract reserve applies.
(2) The sum of the unearned premium and contract reserves for all health insurance policies and certificates of the insurer subject to contract reserve requirements shall not be less than the gross modal unearned premium reserve on all such health insurance policies and certificates, as of the date of valuation. This reserve shall not be less than the expected claims for the period beyond the valuation date represented by the unearned premium reserve, to the extent not provided for under this chapter.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.715 - Premium Reserves; Computation.

500.715 Premium reserves; computation.
Sec. 715.
The insurer may employ suitable approximations and estimates in computing premium reserves including, but not limited to, groupings, averages, and aggregate estimation. The insurer should test periodically the approximations or estimates to determine their continuing adequacy and reliability.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.717 - Contract Reserves; Required for Certain Policies and Certificates; Exception; Addition to Claim and Premium Reserves; Methods and Procedures; Date of Incurral Defined.

500.717 Contract reserves; required for certain policies and certificates; exception; addition to claim and premium reserves; methods and procedures; date of incurral defined.
Sec. 717.
(1) Except as otherwise provided for in subsection (2), contract reserves are required for both of the following:
(a) All health insurance policies and certificates that use level premiums.
(b) All health insurance policies and certificates with respect to which, due to the gross premium pricing structure at issue, the value of the future benefits at any time exceeds the value of any appropriate future valuation net premiums at that time. The values specified in this subdivision shall be determined in the manner provided for in section 719.
(2) Health insurance policies and certificates not requiring a contract reserve include the following:
(a) Policies and certificates that cannot be continued after 1 year from issue.
(b) Policies and certificates already in force on the effective date of this chapter for which a contract reserve was not required under standards in effect before the effective date of this chapter.
(3) The contract reserve is in addition to claim reserves and premium reserves.
(4) The methods and procedures for contract reserves shall be consistent with those methods and procedures for claim reserves for any health insurance policy or certificate, or else appropriate adjustment shall be made when necessary to assure provision for the aggregate liability. The definition of the date of incurral shall be the same in both determinations.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.721 - Application of Alternative Method or Basis to Contract Reserve; Assumptions; Methods to Determine Sound Value of Liabilities.

500.721 Application of alternative method or basis to contract reserve; assumptions; methods to determine sound value of liabilities.
Sec. 721.
(1) If the contract reserve on all health insurance policies and certificates to which an alternative method or basis is applied is not less in the aggregate than the amount determined according to the applicable standards specified in this chapter, an insurer may use any reasonable assumptions as to interest rates, termination, and mortality rates, and rates of morbidity or other contingency.
(2) Subject to subsection (1), the insurer may employ other methods in determining a sound value of its liabilities under health insurance policies and certificates, including, but not limited to, the following:
(a) The net level premium method.
(b) The 1-year full preliminary term method.
(c) Prospective valuation on the basis of actual gross premiums with reasonable allowance for future expenses.
(d) The use of approximations such as those involving age groupings, groupings of several years of issue, average amounts of indemnity, and grouping of similar contract forms.
(e) The computation of the reserve for 1 contract benefit as a percentage of, or by other relation to, the aggregate contract reserves exclusive of the benefit or benefits so valued.
(f) The use of a composite annual claim cost for all or any combination of the benefits included in the policies or certificates valued.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.723 - Tabular Reserves; Annual Review; Increments; Restriction of Future Gross Premiums; Establishment of Contract Reserves for Insufficiency in Aggregate.

500.723 Tabular reserves; annual review; increments; restriction of future gross premiums; establishment of contract reserves for insufficiency in aggregate.
Sec. 723.
(1) A review shall be made annually of the insurer's prospective contract liabilities on health insurance policies and certificates valued by tabular reserves, to determine the continuing adequacy and reasonableness of the tabular reserves giving consideration to future gross premiums. The insurer shall make appropriate increments to the tabular reserves if the tests indicate that the basis of the reserves is no longer adequate, subject to the minimum standards of section 719.
(2) If an insurer has a health insurance policy or certificate for which future gross premiums will be restricted by contract, insurance bureau regulations, or for other reasons, such that the future gross premiums reduced by expenses for administration, commissions, and taxes will be insufficient to cover future claims, the insurer shall establish contract reserves for the insufficiency in the aggregate.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.725 - Reinsurance; Determination of Increases To, or Credit Against, Reserves.

500.725 Reinsurance; determination of increases to, or credit against, reserves.
Sec. 725.
Increases to, or credits against, reserves carried arising because of reinsurance assumed or reinsurance ceded, shall be determined in a manner consistent with minimum reserve standards described in this chapter and with all applicable provisions of the reinsurance contracts that affect the insurer's liabilities.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.729 - Individual Insurance Policies; Minimum Morbidity Standards for Disability Income Benefits; Basis of Contract Reserve Standards for Certain Hospital, Surgical, and Maternity Benefits; Basis of Contract Reserve Standards for Certain Cancer Expense Benefits and Accidental Death Benefits.

500.729 Individual insurance policies; minimum morbidity standards for disability income benefits; basis of contract reserve standards for certain hospital, surgical, and maternity benefits; basis of contract reserve standards for certain cancer expense benefits and accidental death benefits.
Sec. 729.
(1) The following minimum morbidity standards for disability income benefits for individual health insurance policies shall be used:
(a) For contract reserves for policies issued on or after the effective date of this chapter, the 1985 commissioners individual disability tables A (85 C.I.D.A.) or the 1985 commissioners individual disability tables B (85 C.I.D.B.) and for policies issued on or after January 1, 1965, and before the effective date of this chapter, the insurer may use either of those tables or the 1964 commissioners disability table (64 C.D.T.). Each insurer shall elect, with respect to all individual policies issued in any 1 annual statement year, whether it will use tables A or tables B as the minimum standard. The insurer may, however, elect to use the other tables with respect to any subsequent annual statement year.
(b) For claim reserves, the minimum morbidity standard in effect for contract reserves as of the date the claim is incurred.
(2) Contract reserve standards for hospital, surgical, and maternity benefits for scheduled or fixed-time period benefits for individual health insurance policies issued on or after January 1, 1955 and before January 1, 1982, shall be based on the 1956 intercompany hospital-surgical tables and for policies issued on or after January 1, 1982, the 1974 medical expense tables, table A,Transactions of the Society Actuaries, volume XXX, page 63.
(3) The contract reserve standards for scheduled or fixed-time period cancer expense benefits shall be based on the 1985 N.A.I.C. cancer claim cost tables for policies issued on or after January 1, 1986.
(4) Contract reserve standards for accidental death benefits shall be based on the 1959 accidental death benefits table for policies issued on or after January 1, 1965.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.731 - Disability Benefits for Group Health Insurance Certificates; Minimum Morbidity Standards.

500.731 Disability benefits for group health insurance certificates; minimum morbidity standards.
Sec. 731.
The following minimum morbidity standards for disability benefits for group health insurance certificates shall be used:
(a) For contract reserves for policies and certificates issued on or after the effective date of this chapter, the 1987 commissioners group disability income table (87 C.G.D.T.).
(b) For claim reserves for claims incurred prior to, on, or after the effective date of this chapter, the 1987 commissioners group disability income table (87 C.G.D.T.).
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.733 - Maximum Interest Rates.

500.733 Maximum interest rates.
Sec. 733.
(1) The maximum interest rate for contract reserves is the calendar year statutory valuation interest rate for life insurance specified in section 836 as of the date of issuance of the health insurance policy or certificate.
(2) The maximum interest rate for claim reserves on policies requiring contract reserves is the calendar year statutory valuation interest rate for life insurance specified in section 836 as of the date the claim is incurred.
(3) The maximum interest rate for claim reserves on policies not requiring contract reserves is the calendar year statutory valuation interest rate for single premium immediate annuities specified in section 836 as of the date the claim is incurred, reduced by 100 basis points.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.735 - Mortality Basis; Use of Other Mortality Tables; Request for Approval.

500.735 Mortality basis; use of other mortality tables; request for approval.
Sec. 735.
(1) The mortality basis used shall be that specified in section 834 as of the date of issuance of the health insurance policy or certificate.
(2) Other mortality tables adopted by the national association of insurance commissioners and promulgated by the commissioner may be used in the calculation of the minimum reserves if appropriate for the type of benefits and if approved by the commissioner. The request for approval shall include the proposed mortality table and the reason that the standard specified in subsection (1) is inappropriate.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737) › Section 500.737 - Rules.

500.737 Rules.
Sec. 737.
The commissioner may promulgate rules pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws, that he or she considers appropriate for the implementation of this chapter.
History:
Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.808 - Stock or Mutual Insurers; Unearned Premium Reserves, Pro Rata Basis, Computation.

500.808 Stock or mutual insurers; unearned premium reserves, pro rata basis, computation.
Sec. 808.
Every insurer doing business in this state shall establish and maintain an unearned premium reserve on a pro rata basis on all unexpired policies and contracts except for those policies and contracts for which a different basis is specified in this act. A liability shall be set forth for the unearned pro rata portion of the aggregate premiums on all such unexpired risks as ascertained in a manner approved by the commissioner. In the case of perpetual risks or policies of fire insurance, the whole amount of the deposit or premium collected shall be included as unearned. On all unexpired trip risk insurance the entire premium received shall be included as unearned.
History:
1956, Act 218, Eff. Jan. 1, 1957 ;-- Am. 1961, Act 153, Eff. Sept. 8, 1961 ;-- Am. 1962, Act 51, Eff. Mar. 28, 1963 ;-- Am. 1969, Act 318, Eff. Mar. 20, 1970
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.810 - Reserves; Computation; Additional Reserves; Plan to Restore Compliance; Effect of Noncompliance; Examination of Reserve Practices and Investment Incomes.

500.810 Reserves; computation; additional reserves; plan to restore compliance; effect of noncompliance; examination of reserve practices and investment incomes.
Sec. 810.
(1) Each insurer transacting business in this state, at all times, shall maintain reserves in an amount estimated in the aggregate to provide for the payment of all losses and claims incurred, whether reported, or unreported, which are unpaid and for which the insurer may be liable and to provide for the expenses of adjustment or settlement of losses and claims. The reserves shall be computed in accordance with rules promulgated by the commissioner, after due notice and hearing, based upon reasonable consideration of the ascertained experience and the character of those kinds of business, for the purpose of adequately protecting the insureds and securing the solvency of the insurer.
(2) If the loss and loss expense experience of the insurer or the anticipated loss expense experience of the insurer as determined by an actuarial evaluation shows the reserves, calculated in accordance with the rules, to be inadequate, the commissioner shall require the insurer to maintain additional reserves. Within 30 business days after notification by the commissioner that its reserves have been determined to be in noncompliance with the requirements of subsection (1), the insurer shall file a plan to restore compliance. The commissioner, upon written request by the insurer, may grant a period of time within which to restore compliance. The period of time may be granted only if the commissioner is satisfied the insurer is safe, reliable, and entitled to public confidence and the commissioner approves the plan filed by the insurer for restoring compliance within the time granted. If the plan is not approved by the commissioner, or if the plan is approved but at the end of 1 year the insurer is not in compliance with the requirements of this section, the commissioner may grant additional time to comply, or the commissioner may suspend, revoke, or limit the certificate of authority of the insurer pursuant to section 436.
(3) The commissioner shall annually examine the reserve practices and investment incomes of medical malpractice, products liability, and municipal liability insurers licensed to do business in this state.
History:
Add. 1969, Act 318, Eff. Mar. 20, 1970 ;-- Am. 1976, Act 307, Imd. Eff. Oct. 28, 1976 ;-- Am. 1978, Act 506, Imd. Eff. Dec. 13, 1978 ;-- Am. 1986, Act 173, Imd. Eff. July 7, 1986
Popular Name:
Act 218
Admin Rule:
R 500.1231 et seq. of the Michigan Administrative Code.
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.811 - Repealed. 1994, Act 148, Imd. Eff. June 7, 1994.

500.811 Repealed. 1994, Act 148, Imd. Eff. June 7, 1994.
Compiler's Notes:
The repealed section pertained to outstanding disability policies and benefits reserves.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.812 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.

500.812 Repealed. 1969, Act 318, Eff. Mar. 20, 1970.
Compiler's Notes:
The repealed section pertained to liability or workmen's compensation and automobile insurers' reserve for claims.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.813 - Repealed. 1992, Act 182, Imd. Eff. Oct. 1, 1992.

500.813 Repealed. 1992, Act 182, Imd. Eff. Oct. 1, 1992.
Compiler's Notes:
The repealed section pertained to the annual report filed by the commissioner with the legislature.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.814 - Certification of Loss Reserves.

500.814 Certification of loss reserves.
Sec. 814.
The commissioner may require an insurer writing liability insurance, other than homeowners, farmowners, and commercial multiperil, to certify the loss reserves of the insurer by an actuary approved by the commissioner.
History:
Add. 1986, Act 173, Imd. Eff. July 7, 1986
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.815 - Computation of Unearned Premium Reserve on Mortgage Guaranty Insurance.

500.815 Computation of unearned premium reserve on mortgage guaranty insurance.
Sec. 815.
The unearned premium reserve on mortgage guaranty insurance shall be computed in accordance with section 808, except that on policies covering a risk period of more than 1 year the unearned premium reserve shall be computed in accordance with rules promulgated by the commissioner.
History:
Add. 1972, Act 345, Imd. Eff. Jan. 9, 1973
Popular Name:
Act 218
Admin Rule:
R 500.1231 et seq. of the Michigan Administrative Code.
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.815a - Establishment of Contingency Reserve by Mortgage Guaranty Insurer.

500.815a Establishment of contingency reserve by mortgage guaranty insurer.
Sec. 815a.
In addition to the capital, surplus and reserves specified in sections 410, 810 and 815, a mortgage guaranty insurer shall establish a contingency reserve, which shall be reported as a liability in the insurer's financial statements. The amount of the reserve shall be computed in accordance with rules prescribed by the commissioner.
History:
Add. 1972, Act 345, Imd. Eff. Jan. 9, 1973
Popular Name:
Act 218
Admin Rule:
R 500.1231 et seq. of the Michigan Administrative Code.
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.816 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.

500.816 Repealed. 1969, Act 318, Eff. Mar. 20, 1970.
Compiler's Notes:
The repealed section pertained to liability or workmen's compensation and automobile insurers' reserve for claims.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.817 - Repealed. 1966, Act 221, Imd. Eff. July 11, 1966.

500.817 Repealed. 1966, Act 221, Imd. Eff. July 11, 1966.
Compiler's Notes:
The repealed section pertained to unearned premium reserve of title insurers.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.818, 500.822 - Repealed. 1969, Act 318, Eff. Mar. 20, 1970.

500.818, 500.822 Repealed. 1969, Act 318, Eff. Mar. 20, 1970.
Compiler's Notes:
The repealed sections pertained to unearned premium reserve of reciprocal and mutual insurers.
Popular Name:
Act 218
2023 Michigan Compiled Laws › Chapter 500 - Insurance Code of 1956 › Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302) › 218-1956-8 - Chapter 8 Assets and Liabilities (500.808...500.842) › Section 500.831 - Domestic Insurer's Business in Foreign Country; Variance of Mortality Standard.

500.831 Domestic insurer's business in foreign country; variance of mortality standard.
Sec. 831.
In case of insurance issued by a domestic insurer authorized to do business in a foreign country upon the lives of residents of that country, the commissioner may vary the mortality standard to a standard applicable to that country.
History:
Add. 1961, Act 127, Eff. Sept. 8, 1961
Popular Name:
Act 218