reglab/statecodes huggingface dataset:
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › No-Fault Fee Schedule › Section R. 500.202 - Scope and applicability

Current through Vol. 24-12, July 15, 2024
Rule 2.
These rules do the following:
(a) Define the applicable Medicare fee
				schedule.
(b) Establish procedures
				for determining which providers are eligible for enhanced
				reimbursement.
(c) Establish
				procedures for the department to collect information related to amounts charged
				by providers as of January 1, 2019, for the purposes of resolving provider
				appeals under
				R
				500.65.
(d) Establish a date and methodology for
				determining the adjustment of payment or reimbursement under section 3157(9) of
				the act, MCL 500.3157.
(e)
				Establish procedures for the department to administer the accreditation
				requirements under section 3157(12) of the act, MCL 500.3157.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › No-Fault Fee Schedule › Section R. 500.203 - Medicare calculation

Current through Vol. 24-12, July 15, 2024
Rule 3.
When calculating the amount payable to a provider for a
				  service under Medicare part A or part B, as referenced in section 3157 of the
				  act, MCL 500.3157, the amounts payable to participating providers under the
				  applicable fee schedule shall be utilized. An amount payable pursuant to the
				  fee schedule may not exceed the average amount charged by the provider for the
				  service on January 1, 2019.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › No-Fault Fee Schedule › Section R. 500.204 - Eligibility for enhanced reimbursement

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1) No less
				frequently than annually, the department shall issue a bulletin designating not
				more than 2 freestanding rehabilitation facilities pursuant to section
				3157(4)(b) of the act, MCL 500.3157. A freestanding rehabilitation clinic that
				seeks to be recognized by the department shall submit an application for
				recognition on a form prescribed by the department. The department's
				designation remains in effect until revoked by the department.
(2) No less frequently than annually, the
				department shall issue a bulletin that lists which providers are entitled to
				enhanced reimbursement under section 3157(4)(a) or section 3157(5) of the act,
				MCL 500.3157. To determine whether a provider qualifies for enhanced
				reimbursement under section 3157(4)(a) or section 3157(5) of the act, MCL
				500.3157, the department shall rely on data provided by the department of
				health and human services related to the provider's indigent volume factor as
				of July 1 of the immediately preceding year.
(3) No less frequently than annually, the
				department shall issue a bulletin that lists which hospitals are Level I or
				Level II trauma centers for purposes of enhanced reimbursement under section
				3157(6) of the act, MCL 500.3157. This list must be based on the hospital's
				designation on January 1 of that year.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › No-Fault Fee Schedule › Section R. 500.205 - Charge description master; average amount charged; average charge; submissions to department in connection with an appeal under R 500.65

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) Upon the
				department's request, a provider that appeals a determination to the department
				under
				R
				500.65, shall make the following submissions to the
				department, in a form and manner prescribed by the department, as applicable:
(a) If a provider has a charge description
				master that was in effect on January 1, 2019, the provider shall submit to the
				department the provider's charge description master that was in effect on
				January 1, 2019.
(b) If a provider
				offered or rendered services on January 1, 2019, and does not have a charge
				description master that was in effect on January 1, 2019, or has a charge
				description master that was in effect on January 1, 2019 that does not list all
				of the provider's services offered or rendered on January 1, 2019, the provider
				shall submit to the department the provider's average amount charged for any
				service offered or rendered on January 1, 2019, that is not included in a
				charge description master submitted to the department under subdivision (a) of
				this subrule.
(c) If a provider
				does not meet the criteria under subdivision (a) or (b) of this subrule, the
				department shall consult the FAIR Health benchmarking database to determine the
				average amount charged in the applicable geozip for the service or services at
				issue based on FAIR Health's most recently published data that includes dates
				of service on January 1, 2019, as adjusted in accordance with subrule (6) of
				this rule.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › No-Fault Fee Schedule › Section R. 500.206 - Neurological rehabilitation clinic accreditation; information submission

Current through Vol. 24-12, July 15, 2024
Rule 6.
(1) The
				department shall issue a bulletin recognizing the organizations it deems
				similar to the Commission on Accreditation of Rehabilitation Facilities (CARF)
				for the accreditation of neurological rehabilitation clinics pursuant to
				section 3157(12) of the act, MCL 500.3157. The department's recognition remains
				in effect until revoked.
(2) A
				neurological rehabilitation clinic that seeks payment or reimbursement for
				services rendered to an injured person for an accidental bodily injury covered
				by personal protection insurance under chapter 31 of the act, MCL 500.3101 to
				500.3179, shall, upon the department's request, submit on a form prescribed by
				the department the following information, as applicable:
(a) Proof of accreditation by CARF or a
				similar organization recognized by the director as referenced in subrule (1) of
				this rule.
(b) If a neurological
				rehabilitation clinic is in the process of becoming accredited on July 1, 2021,
				information concerning its status in the accreditation process with updates
				provided to the department every 6 months thereafter until the neurological
				rehabilitation clinic is accredited.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Surprise Medical Billing › Section R. 500.241 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1.
(1) As used
				in these rules:
(a) "Act" means the public
				health code, 1978 PA 368, MCL 333.1101 to 333.25211.
(b) "Median amount" means the median amount
				negotiated by the carrier for the region and provider specialty, excluding any
				in-network coinsurance, copayments, or deductibles. The carrier shall determine
				the region and provider specialty.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Surprise Medical Billing › Section R. 500.242 - Scope and applicability

Current through Vol. 24-12, July 15, 2024
Rule 2. These rules do the following:
(a) Establish procedures for the department
				to review and resolve requests for calculation review submitted pursuant to
				section 24510 of the act, MCL 333.24510.
(b) Establish procedures for approving
				arbitrators to provide binding arbitration pursuant to section 24511 of the
				act, MCL 333.24511.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Surprise Medical Billing › Section R. 500.243 - Requests for calculation review

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) A
				nonparticipating provider must make a request for a review of the calculation
				described in section 24510(1) of the act, MCL 333.24510, on a form provided by
				the department.
(2) In response to
				a request from a nonparticipating provider for a calculation review under
				section 24510 of the act, MCL 333.24510, the department shall do the following
				within 14 days of the date of the request:
(a)
				Notify the carrier of the request for a calculation review.
(b) Request data on the carrier's median
				amount or any documents, materials, or other information the department
				believes is necessary to assist in reviewing the calculation described in
				section 24510(1) of the act, MCL 333.24510.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Surprise Medical Billing › Section R. 500.244 - Median amount; access to database

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1) Subject
				to subrule (3) of this rule, a carrier may satisfy the requirement under R
				500.243 by providing the department with access to a database that contains all
				of the carrier's median amounts. The database must meet all of the following
				requirements:
(a) Be updated no less
				frequently than quarterly.
(b) Be
				searchable by region, provider specialty, and health care service.
(c) Include negotiated rates for all health
				care services covered by the carrier.
(d) Be continuously accessible to the
				department.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Surprise Medical Billing › Section R. 500.245 - Approval of arbitrators

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) The
				department shall create and maintain a list of arbitrators trained by the
				American Arbitration Association or American Health Lawyers Association and
				approved by the director. This list must be updated no less frequently than
				annually and must be posted on the department's website.
(2) Arbitrators seeking to be included in the
				list under subrule (1) of this rule must apply on a form prescribed by the
				department.
(3) The department
				shall approve or disapprove an application no later than 60 days after the date
				of receipt of the application. Applicants whose application has been
				disapproved may reapply at any time.
(4) If approved for inclusion in the list
				under subrule (1) of this rule, arbitrators must annually provide to the
				department, on a form prescribed by the department, an attestation
				acknowledging that the information provided to the department in the
				arbitrator's application under subrule (2) of this rule remains complete and
				accurate.
(5) Arbitrators included
				on the department's list under subrule (1) of this rule must notify the
				department of any changes to the information contained in the arbitrator's
				application under subrule (2) of this rule within 30 days of the change. An
				arbitrator's failure to inform the department of these changes may result in
				revocation of the arbitrator's approval and removal from the list under subrule
				(1) of this rule.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Refund Of Unearned Premium Adjustment › Section R. 500.351 - Unearned premium refunds from insolvent insurers; annual adjustment

Current through Vol. 24-12, July 15, 2024
Rule 1. Annually, the commissioner of insurance shall adjust
				  the maximum amount of unearned premiums which shall constitute a covered claim
				  prescribed in section 7925(2)(a) of Act No. 218 of the Public Acts of 1956, as
				  amended, being S500.7925(2)(a) of the Michigan Compiled Laws, by the ratio of
				  the national consumer price index as calculated by the United States department
				  of labor for all items for March of each year to the corresponding consumer
				  price index 1 year earlier, rounded to the nearest dollar. If the index is
				  unavailable, the commissioner shall make a reasonable approximation. The
				  effective date of the adjustment shall be July 1 of each year. The commissioner
				  shall notify all interested parties of the adjustment.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.521 - Exemption of transactions in connection with a distribution

Current through Vol. 24-12, July 15, 2024
Rule 521.
(1) Any
				  transaction of purchase and sale, or sale and purchase of a security which is
				  effected in connection with the distribution of a substantial block of
				  securities is exempt from the provisions of section 5283 of the act to the
				  extent specified in this rule as not comprehended within the purpose of section
				  5283, upon the following conditions:
(a) The
				  person effecting the transaction is engaged in the business of distributing
				  securities and is participating in good faith, in the ordinary course of such
				  business, in the distribution of such block of securities.
(b) The security involved in the transaction
				  is a part of such block of securities and is acquired by the person effecting
				  the transaction, with a view to the distribution thereof, from the insurer or
				  other person on whose behalf such securities are being distributed or from a
				  person who is participating in good faith in the distribution of such block of
				  securities or a security purchased in good faith by or for the account of the
				  person effecting the transaction for the purpose of stabilizing the market
				  price of securities of the class being distributed or to cover an
				  over-allotment or other short position created in connection with such
				  distribution.
(c) Other persons not
				  within the purview of section 5283 of the act are participating in the
				  distribution of such block of securities on terms at least as favorable as
				  those on which the person is participating and to an extent at least equal to
				  the aggregate participation of all persons exempted from the provisions of
				  section 5283 of the act by this rule. The performance of the functions of
				  manager of a distributing group and the receipt of a bona fide payment for
				  performing such functions shall not preclude an exemption which would otherwise
				  be available under this rule.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.522 - Exemption of acquisition under certain stock plans

Current through Vol. 24-12, July 15, 2024
Rule 522. Any acquisition of shares of stock, other than
					 stock acquired upon the exercise of an option, warrant or right, pursuant to a
					 stock bonus, profit sharing, retirement, incentive, thrift, savings or similar
					 plan, or any acquisition of a qualified or a restricted stock option pursuant
					 to a qualified or a restricted stock option plan, or a stock option pursuant to
					 an employee stock purchase plan, by a director or officer of an insurer issuing
					 the stock or stock option is exempt from the operation of section 5283 of the
					 act if the plan meets the conditions of
					 R
					 500.523 and
					 R
					 500.526.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.523 - Approval of plans; proxies

Current through Vol. 24-12, July 15, 2024
Rule 523. The plan has been approved, directly or
					 indirectly, by the affirmative votes of the holders of a majority of the
					 securities of such insurer present, or represented, and entitled to a vote at a
					 meeting duly held in accordance with the applicable laws of the state or by the
					 written consent of the holders of a majority of the securities of the insurer
					 entitled to vote. If the vote or written consent was not solicited
					 substantially in accordance with the proxy rules and regulations prescribed by
					 the commissioner in effect at the time of the vote or written consent, the
					 insurer shall furnish in writing to the holders of record of the securities
					 entitled to vote for the plan substantially the same information concerning the
					 plan which would be required by such rules and regulations in effect at the
					 time the information is furnished, if proxies to be voted with respect to the
					 approval or disapproval of the plan were then being solicited, on or prior to
					 the date of the first annual meeting of security holders held subsequent to the
					 later of the date the act first applies to the insurer, or the acquisition of
					 an equity security for which exemption is claimed. The written information may
					 be furnished by mail to the last known address of the security holders of
					 record within 30 days prior to the date of mailing. Four copies of the written
					 information shall be filed with the commissioner not later than the date on
					 which it is first sent or given to security holders of the insurer. For the
					 purposes of this rule, the term "insurer" includes a predecessor corporation if
					 the plan or obligations to participate thereunder were assumed by the insurer
					 in connection with the succession.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.524 - Selection of participants in plan

Current through Vol. 24-12, July 15, 2024
Rule 524.
(1) If
				  the selection of any director or officer of the insurer to whom stock may be
				  allocated or to whom qualified, restricted or employee stock purchase plan
				  stock options may be granted pursuant to the plan, or the determination of the
				  number or maximum number of shares of stock which may be allocated to any
				  director or officer or which may be covered by qualified, restricted or
				  employee stock purchase plan stock options granted to any director or officer,
				  is subject to the discretion of any person, then such discretion shall be
				  exercised only as prescribed in this rule.
(2) With respect to the participation of
				  directors:
(a) By the board of directors of
				  the insurer, a majority of which board and a majority of the directors acting
				  in the matter are disinterested persons.
(b) By, or only in accordance with the
				  recommendations of, a committee of 3 or more persons having full authority to
				  act in the matter, all of the members of which committee are disinterested
				  persons.
(c) In accordance with the
				  plan, if it specifies the number or maximum number of shares of stock which
				  directors may acquire or which may be subject to qualified, restricted or
				  employee stock purchase plan stock options granted to directors and the terms
				  upon which, and the times at which, or the periods within which, such stock may
				  be acquired or such options may be acquired and exercised; or sets forth, by
				  formula or otherwise, effective and determinable limitations with respect to
				  the foregoing based upon earnings of the insurer, dividends paid, compensation
				  received by participants, option prices, market value of shares, outstanding
				  shares or percentages thereof outstanding from time to time, or similar
				  factors.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.525 - Limitations required in plans

Current through Vol. 24-12, July 15, 2024
Rule 525. As to each participant or as to all participants
					 the plan effectively limits the aggregate dollar amount or the aggregate number
					 of shares of stock which may be allocated or which may be subject to qualified,
					 restricted or employee stock purchase plan stock options granted pursuant to
					 the plan. The limitations may be established on an annual basis, or for the
					 duration of the plan, whether or not the plan has a fixed termination date; and
					 may be determined either by fixed or maximum dollar amounts or fixed or maximum
					 numbers of shares or by formulas based upon earnings of the insurer, dividends
					 paid, compensation received by participants, option prices, market value of
					 shares, outstanding shares or percentages thereof outstanding from time to time
					 or similar factors which will result in an effective and determinable
					 limitation. Such limitations may be subject to any provisions for adjustment of
					 the plan or of stock allocable or options outstanding thereunder to prevent
					 dilution or enlargement of rights.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.526 - Definitions for R 500.522 to R 500.526

Current through Vol. 24-12, July 15, 2024
Unless the context otherwise requires, all terms used in
					 R 500.522 to R 500.526 shall have the
					 same meaning as in the act or elsewhere in these rules. In addition, the
					 following definitions apply:
(a)
				  "Plan" includes any plan, whether or not set forth in any formal written
				  document or documents and whether or not approved in its entirety at 1
				  time.
(b) The definition of the
				  terms "qualified stock option" and "employee stock purchase plan" that are set
				  forth in sections 422 and 423 of the internal revenue code of 1954, as amended,
				  are to be applied to those terms where used in
				  R
				  500.523 to R 500.526. The term "restricted stock
				  option" as defined in section 424(b) of the internal revenue code of 1954, as
				  amended, shall be applied to that term as used in
				  R
				  500.523 to R 500.526, but an option which meets all of
				  the conditions of section 424(b), other than the date of issuance shall be
				  deemed to be a "restricted stock option."
(c) The term "exercise of an option, warrant
				  or right" contained in
				  R 500.522 shall not include (i) the
				  making of any election to receive under any plan and award of compensation in
				  the form of stock or credits therefor if the election is made prior to the
				  making of the award and if the election is irrevocable until at least 6 months
				  after termination of employment; (ii) the subsequent crediting of the stock;
				  (iii) the making of any election as to time for delivery of the stock after
				  termination of employment if the election is made at least 6 months prior to
				  any delivery; (iv) the fulfillment of any condition to the absolute right to
				  receive stock; or (v) the acceptance of certificates for shares of
				  stock.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.527 - Exemption of transactions in which securities are received by redemption

Current through Vol. 24-12, July 15, 2024
Rule 527. Any acquisition of an equity security, other than
					 a convertible security or right to purchase a security, by a director or
					 officer of the insurer issuing such security is exempt from the operation of
					 section 5283 of the act upon condition that:
(a) The equity security is acquired by way of
				  redemption of another security of an insurer substantially all of whose assets
				  other than cash or government bonds consist of securities of the insurer
				  issuing the equity security so acquired, and which:
(i) Represented substantially and in
				  practical effect a stated or readily ascertainable amount of the equity
				  security;
(ii) Had a value which
				  was substantially determined by the value of such equity security;
				  and
(iii) Conferred upon the holder
				  the right to receive such equity security without the payment of any
				  consideration other than the security redeemed.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.528 - Exemption of long-term profits incident to sales within 6 months of the exercise of an option

Current through Vol. 24-12, July 15, 2024
Rule 528.
(1) To
				  the extent specified in subrule (2) of this rule, the commissioner exempts as
				  not comprehended within the purposes of section 5283 of the act any transaction
				  or transactions involving the purchase and sale, or sale and purchase, of any
				  equity security where such purchase is pursuant to the exercise of an option or
				  similar right either acquired more than 6 months before its exercise, or
				  acquired pursuant to the terms of an employment contract entered into more than
				  6 months before its exercise.
(2)
				  In respect of transactions specified in subrule (1) the profits inuring to the
				  insurer shall not exceed the difference between the proceeds of sale and the
				  lowest market price of any security of the same class within 6 months before or
				  after the date of sale. Nothing in this section shall be deemed to enlarge the
				  amount of profit which would inure to the insurer in the absence of this
				  rule.
(3) The commissioner also
				  exempts, as not comprehended within the purposes of section 5283 of the act,
				  the disposition of a security, purchased in a transaction specified in subrule
				  (1) of this rule, pursuant to a plan or agreement for merger or consolidation,
				  or reclassification of the insurer's securities, or for the exchange of it
				  securities for the securities of another person which has acquired its assets,
				  or which is in control, as defined in section 368(c) of the internal revenue
				  code of 1954, of a person which has acquired its assets, where the terms of the
				  plan or agreement are binding upon all stockholders of the insurer except to
				  the extent that dissenting stockholders may be entitled, under statutory
				  provisions or provisions contained in the certificate of incorporation, to
				  receive the appraised or fair value of their holdings.
(4) The exemptions provided by this rule
				  shall not apply to any transaction made unlawful by section 5284 of the act or
				  by any rules thereunder.
(5) The
				  burden of establishing market price of a security for the purpose of this rule
				  rests upon the person claiming the exemption.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.529 - Exemption of transactions pursuant to mergers or consolidations or consolidations

Current through Vol. 24-12, July 15, 2024
Rule 529.
(1) The
				  following transactions are exempt from the provisions of section 5283 of the
				  act as not comprehended within the purpose of the section:
(a) The acquisition of a security of an
				  insurer, pursuant to a merger or consolidation, in exchange for a security of a
				  company which, prior to the merger or consolidation, owned 85% or more of the
				  equity securities of all other companies involved in the merger or
				  consolidation except, in the case of consolidation, the resulting
				  company.
(b) The disposition of a
				  security, pursuant to a merger or consolidation of an insurer which, prior to
				  the merger or consolidation, owned 85% or more of the equity securities of all
				  other companies involved in the merger or consolidation except, in the case of
				  consolidation, the resulting company.
(c) The acquisition of a security of an
				  insurer, pursuant to a merger or consolidation, in exchange for a security of a
				  company which, prior to the merger or consolidation, held over 85% of the
				  combined assets of all the companies undergoing merger or consolidation,
				  computed according to their book values prior to the merger or consolidation,
				  as determined by reference to their most recent available financial statements
				  for a 12-month period prior to the merger or consolidation.
(d) The disposition of a security, pursuant
				  to a merger or consolidation, of an insurer which, prior to the merger or
				  consolidation, held over 85% of the combined assets of all the companies
				  undergoing merger or consolidation, computed according to their book values
				  prior to merger or consolidation, as determined by reference to their most
				  recent available financial statements for a 12-month period prior to the merger
				  or consolidation.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.530 - Exemption of transactions in securities under voting trusts or deposit agreements

Current through Vol. 24-12, July 15, 2024
Rule 530. Any acquisition or disposition of an equity
					 security involved in the deposit of the security under, or the withdrawal of
					 the security from, a voting trust or deposit agreement, and the acquisition or
					 disposition in connection therewith of the certificate representing the
					 security, is exempt from the operation of section 5283 of the act if
					 substantially all of the assets held under the voting trust or deposit
					 agreement immediately after the deposit or immediately prior to the withdrawal,
					 consisted of equity securities of the same class as the security deposited or
					 withdrawn. This rule shall not apply to the extent that there have been either
					 (a) a purchase of an equity security of the class deposited and a sale of any
					 certificate representing an equity security of that class, or (b) a sale of an
					 equity security of the class deposited and purchase of any certificate
					 representing an equity security of that class, otherwise than in a transaction
					 involved in the deposit or withdrawal or in a transaction exempted by any other
					 provision of
					 R 500.521 to
					 R 500.531, within a period of less
					 than 6 months which includes the date of the deposit or
					 withdrawal.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.531 - Exemption of transactions involving conversion of equity securities

Current through Vol. 24-12, July 15, 2024
Rule 531.
(1) Any
				  acquisition or disposition of an equity security involved in the conversion of
				  an equity security which, by its terms or pursuant to the terms of the
				  insurer's charter or other governing instruments, is convertible immediately or
				  after a stated period of time into another equity security of the same insurer,
				  is exempt from the operation of section 5283 of the act. This rule shall not
				  apply to the extent that there shall have been either (a) a purchase of any
				  equity security of the class convertible, including any acquisition of or
				  change in a conversion privilege, and a sale of any equity security of the
				  class issuable upon conversion, or (b) a sale of any equity security of the
				  class convertible and any purchase of any equity security issuable upon
				  conversion, otherwise than in a transaction involved in the conversion or in a
				  transaction exempted by any other provision of
				  R 500.521 to R 500.531, within a
				  period of less than 6 months which includes the date of conversion.
(2) For the purpose of this rule, an equity
				  security shall not be deemed to be acquired or disposed of upon conversion of
				  an equity security if the terms of the equity security converted require the
				  payment or entail the receipt, in connection with such conversion, of cash or
				  other property other than equity securities involved in the conversion, equal
				  in value at the time of conversion to more than 15% of the value of the equity
				  security issued upon conversion.
(3) For the purpose of this rule, an equity
				  security shall be deemed convertible if it is convertible at the option of the
				  holder or of some other person or by operation of the terms of the security or
				  the governing instruments.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5283 OF THE ACT › Section R. 500.532 - Exemption of transactions involving sale of subscription rights

Current through Vol. 24-12, July 15, 2024
Rule 532.
(1) Any
				  sale of a subscription right to acquire any subject security of the same
				  insurer is exempt from the provisions of section 5283 of the act, to the extent
				  prescribed in this rule, as not comprehended within the purpose of section 5283
				  of the act, if all of the following occur:
(a)
				  The subscription right is acquired, directly or indirectly, from the insurer
				  without the payment of consideration.
(b) The subscription right by its terms
				  expires within 45 days after the issuance thereof.
(c) The subscription right by its terms is
				  issued on a pro rata basis to all holders of the beneficiary security of the
				  insurer.
(d) A registration
				  statement under the securities act of 1933 is in effect as to each subject
				  security or the applicable terms of any exemption from such registration have
				  been met in respect to each subject security.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5284 OF THE ACT › Section R. 500.541 - Exemption of certain securities

Current through Vol. 24-12, July 15, 2024
Rule 541. Any security is exempt from the operation of
					 section 5284 of the act to the extent necessary to render lawful under section
					 5284the execution by a broker of an order for an account in which he has no
					 direct or indirect interest.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5284 OF THE ACT › Section R. 500.542 - Exemption of transactions in connection with a distribution

Current through Vol. 24-12, July 15, 2024
Rule 542. Any security is exempt from the operation of
					 section 5284 of the act to the extent necessary to render lawful under section
					 5284any sale made by or on behalf of a dealer in connection with a distribution
					 of a substantial block of securities, upon the following conditions:
(a) The sale is represented by an
				  over-allotment in which the dealer is participating as a member of an
				  underwriting group, or the dealer or a person acting on his behalf intends in
				  good faith to offset such sale with a security to be acquired by or on behalf
				  of the dealer as a participant in an underwriting, selling or soliciting-dealer
				  group of which the dealer is a member at the time of the sale, whether or not
				  the security to be so acquired is subject to a prior offering to existing
				  security holders or some other class of persons; and
(b) Other persons not within the purview of
				  section 5284 of the act are participating in the distribution of the block of
				  securities on terms at least as favorable as those on which the dealer is
				  participating and to an extent at least equal to the aggregate participation of
				  all persons exempted from the provisions of section 5284 of the act by this
				  rule. The performance of the functions of manager of a distributing group and
				  the receipt of a bona fide payment for performing such functions shall not
				  preclude an exemption which would otherwise be available under this
				  rule.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5284 OF THE ACT › Section R. 500.543 - Exemption of sales of securities to be acquired

Current through Vol. 24-12, July 15, 2024
Rule 543.
(1)
				  Whenever any person is entitled, as an incident to his ownership of an issued
				  security and without the payment of consideration, to receive another security
				  "when issued" or "when distributed," the security to be acquired is exempt from
				  the operation of section 5284if:
(a) The sale
				  is made subject to the same conditions as those attaching to the right of
				  acquisition; and
(b) The person
				  exercises reasonable diligence to deliver the security to the purchaser
				  promptly after his right of acquisition matures; and
(c) The person reports the sale on the
				  appropriate form for reporting transactions by persons subject to section 5282
				  of the act.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Regulations Under Section 5283 of The Act › REGULATIONS UNDER SECTION 5284 OF THE ACT › Section R. 500.545 - Arbitrage transactions

Current through Vol. 24-12, July 15, 2024
Rule 545. It is unlawful for any director or officer of an
					 insurer to effect any foreign or domestic arbitrage transaction in any equity
					 security of the insurer, unless he includes the transaction in the statements
					 required by section 5282 of the act and accounts to the insurer for the profits
					 arising from the transaction, as provided in section 5283.The provisions of
					 section 5284do not apply to such arbitrage transactions. The provisions of the
					 act do not apply to any bona fide foreign or domestic arbitrage transaction
					 insofar as it is effected by any person other than a director or officer of the
					 insurer.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.551 - Authority

Current through Vol. 24-12, July 15, 2024
Rule 1.
(a) These
				rules establish standards for developing and implementing administrative,
				technical, and physical safeguards to protect the security, confidentiality,
				and integrity of customer information, pursuant to Sections 501, 505(b), and
				507 of the Gramm-Leach-Bliley Act, codified at
				15 U.S.C.
				6801,
				6805(b)
				and
				6807,
				Chapter 5 of the Insurance Code, MCL 500.501 to 500.547, with penalties for
				violation specified in Chapter 20 of the Insurance Code, MCL 500.2001 to
				500.2050.
(b) Section 501(a) of the
				Gramm-Leach-Bliley Act provides that it is the policy of the Congress that each
				financial institution has an affirmative and continuing obligation to respect
				the privacy of its customers and to protect the security and confidentiality of
				those customers' nonpublic personal information. Section 501(b) of the
				Gramm-Leach-Bliley Act requires the state insurance regulatory authorities to
				establish appropriate standards relating to all of the following
				administrative, technical, and physical safeguards:
(i) To ensure the security and
				confidentiality of customer records and information.
(ii) To protect against any anticipated
				threats or hazards to the security or integrity of such records.
(iii) To protect against unauthorized access
				to or use of records or information that may result in substantial harm or
				inconvenience to a customer.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.552 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 2. As used in these rules:
(a) "Customer" means a customer of the
				licensee as the term customer is defined in MCL 500.503(h).
(b) "Customer information" means nonpublic
				personal financial information as defined in MCL 500.503(n) and (p) about a
				customer, whether in paper, electronic, or other form, that is maintained by or
				on behalf of the licensee.
(c)
				"Customer information systems" means the electronic or physical methods used to
				access, collect, store, use, transmit, protect, or dispose of customer
				information.
(d) "Licensee" means a
				licensee, as that term is defined in MCL 500.503(l), including third-party
				administrators under MCL 550.920.
(e) "Service provider" means a person that
				maintains, processes, or otherwise may access customer information through its
				provision of services directly to the licensee.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.553 - Information security program

Current through Vol. 24-12, July 15, 2024
Rule 3. Each licensee shall implement a comprehensive written
				  information security program that includes administrative, technical, and
				  physical safeguards for the protection of customer information. The
				  administrative, technical, and physical safeguards included in the information
				  security program shall be appropriate to the size and complexity of the
				  licensee and the nature and scope of its activities.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.554 - Objectives of information security program

Current through Vol. 24-12, July 15, 2024
Rule 4. A licensee's information security program shall be
				  designed to do all of the following:
(a) Ensure the security and confidentiality
				of customer information.
(b)
				Protect against any anticipated threats or hazards to the security or integrity
				of the information.
(c) Protect
				against unauthorized access to or use of the information that could result in
				substantial harm or inconvenience to any customer.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.555 - Examples of methods of development and implementation

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) The
				actions and procedures described in
				R
				500.556 to
				R
				500.559 are examples of methods of implementation of
				the requirements of
				R
				500.553 and R500.554. These examples are non-exclusive
				illustrations of actions and procedures that licensees may follow to implement
				R
				500.553 and
				R 500.554.
(2) A licensee who performs all actions and
				procedures of implementation specified in
				R
				500.556 through
				R
				500.559 shall be considered in compliance with
				R
				500.553 and
				R 500.554.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.556 - Assess risk; example

Current through Vol. 24-12, July 15, 2024
Rule 6. To assess risk, a licensee may do all of the
				  following:
(a) Identify reasonably
				foreseeable internal or external threats that could result in unauthorized
				disclosure, misuse, alteration, or destruction of customer information or
				customer information systems.
(b)
				Assess the likelihood and potential damage of these threats, taking into
				consideration the sensitivity of customer information.
(c) Assess the sufficiency of policies,
				procedures, customer information systems and other safeguards in place to
				control risks.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.557 - Manage and control risk; example

Current through Vol. 24-12, July 15, 2024
Rule 7. To manage and control risk, a licensee may do all of
				  the following:
(a) Design its
				information security program to control the identified risks, commensurate with
				the sensitivity of the information, as well as the complexity and scope of the
				licensee's activities.
(b) Train
				staff, as appropriate, to implement the licensee's information security
				program.
(c) Regularly test or
				otherwise regularly monitor the key controls, systems, and procedures of the
				information security program. The frequency and nature of these tests or other
				monitoring practices are determined by the licensee's risk
				assessment.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.558 - Oversee service provider arrangements; example

Current through Vol. 24-12, July 15, 2024
Rule 8. To oversee service provider arrangements, a licensee
				  may do both of the following:
(a)
				Exercise appropriate due diligence in selecting its service
				providers.
(b) Require its service
				providers to implement appropriate measures designed to meet the objectives of
				these rules, and, where indicated by the licensee's risk assessment, take
				appropriate steps to confirm that its service providers have satisfied these
				obligations.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.559 - Adjust program; example

Current through Vol. 24-12, July 15, 2024
Rule 9. To adjust its program, a licensee monitors,
				  evaluates, and adjusts, as appropriate, the information security program in
				  light of any relevant changes in technology, the sensitivity of its customer
				  information, internal or external threats to information, and the licensee's
				  own changing business arrangements, such as mergers and acquisitions,
				  alliances, and joint ventures, outsourcing arrangements and changes to customer
				  information systems.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Standards for Safeguarding Customer Financial Information › Section R. 500.560 - Violations

Current through Vol. 24-12, July 15, 2024
Rule 10.
(a) As
				provided in MCL 500.2013, a violation of any requirement of this regulation is
				an unfair method of competition or an unfair or deceptive act and practice in
				the conduct of the business of insurance in this state.
(b) If a licensee complies with all
				requirements of the federal health insurance portability and accountability
				(HIPAA) privacy rule, including security standards and any more stringent laws,
				45 CFR parts 160 and 164, for all customer information in the licensee's
				possession -financial, health, and medical - such compliance shall also
				constitute compliance with chapter 5 of the insurance code, MCL 500.501 to
				500.547, and these safeguarding rules.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › REPLACEMENT OF LIFE INSURANCE POLICIES › Section R. 500.601 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 601. As used in these rules:
(a) "Conservation" means any attempt by the
				  existing insurer or its agent to continue existing life insurance in force when
				  the existing insurer has received the information statement as required by
				  R 500.604 from a replacing insurer. A
				  conservation effort does not include routine administrative procedures such as
				  late payment reminders, late payment offers, or reinstatement offers.
(b) "Life insurance" does not mean fixed or
				  variable annuity contracts.
(c)
				  "Replacement of life insurance" means any transaction in which life insurance
				  is to be purchased and in which, as part of the transaction, with respect to
				  existing life insurance, any of the following has occurred or will occur:
(i) Lapse, forfeiture, surrender, or
				  termination.
(ii) Conversion to
				  reduced paid-up insurance, continuation as extended term insurance, or a
				  reduction in value by the use of nonforfeiture benefits or other policy
				  values.
(iii) Amendment to effect a
				  reduction in either benefits or in the term for which coverage would otherwise
				  remain in force or for which benefits would be paid.
(iv) Reissuance with any reduction in cash
				  value.
(v) Pledging as collateral
				  or subjecting to borrowing, whether in a single loan or under a schedule of
				  borrowing over a period of time for amounts in the aggregate exceedng 25% of
				  tne loan value set forth in the policy.