Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › DISCRETIONARY GROUP LIFE INSURANCE AND GROUP LIFE INSURANCE › Section R. 500.611 - Discretionary group life insurance; procedures

Current through Vol. 24-12, July 15, 2024
Rule 1.
(1) A
				  group life insurance policy shall not be issued under section 4424 of Act No.
				  218 of the Public Acts of 1956, as amended, being S500. 4424 of the Michigan
				  Compiled Laws, until the commissioner has issued a certificate of authority to
				  purchase discretionary group life insurance to the applicant group and has
				  given written notice of issuance of the certificate of authority to the insurer
				  which is to provide the group life insurance.
(2) Application for a certificate of
				  authority shall be made to the commissioner on forms prescribed by the
				  commissioner by the person who is to serve as policyholder for the proposed
				  discretionary group. If a trustee is to serve as policyholder, he or she shall
				  submit with the application written evidence of his or her authority to act as
				  trustee. If the applicant group is party to or results from a trust agreement
				  or a bargaining agreement, a copy of the agreement shall be submitted with the
				  application. If the applicant group has a constitution or bylaws, or both, a
				  certified copy of each such document shall be submitted with the
				  application.
(3) If the
				  commissioner determines, based upon representations made in the application and
				  in the documents accompanying it, that granting permission to the group to
				  purchase group life insurance would be consonant with the dictates of public
				  policy as expressed in section 4424 of Act No. 218 of the Public Acts of 1956,
				  as amended, being S500.4424 of the Michigan Compiled Laws, he or she shall
				  issue a preliminary certificate of eligibility, which certificate indicates
				  that the group is qualified to negotiate with insurers for group life insurance
				  coverage.
(4) The policies,
				  certificates, and schedule of rates which an insurer proposes to use in
				  providing insurance coverage for a group holding a certificate of eligibility
				  shall be submitted to the commissioner by the insurer. If the commissioner
				  determines, after review of the materials submitted, that the proposed plan of
				  insurance meets the requirements of Act No. 218 of the Public Acts of 1956, as
				  amended, being S500.100 et seq.of the Michigan Compiled Laws, he or she shall
				  issue a certificate of authority to the group and shall notify the insurer in
				  writing that the certificate has been issued.
(5) A group holding a certificate of
				  authority shall not make any material change in the composition or size of the
				  group and shall not make any material change in the benefits provided by the
				  plan of insurance approved by the commissioner, until the commissioner has
				  approved the changes in writing. If a change is made without the prior written
				  approval of the commissioner, the certificate of authority may be
				  terminated.
(6) An insurer
				  providing coverage for a group holding a certificate of authority shall file
				  any change in its schedule of rates for that coverage with the commissioner not
				  later than 30 days after the effective date of the change. An insurer shall not
				  issue any group life insurance policy for which the premium rate exceeds that
				  determined by the schedule of such group as then on file with the
				  commissioner.
(7) The commissioner
				  may require that each discretionary group holding a certificate of authority
				  file a report with the commissioner at the conclusion of each policy year, on a
				  form prescribed by the commissioner.