reglab/statecodes huggingface dataset:
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › 1980 CSO And 1980 Cet Unisex Mortality Tables › Section R. 500.1225 - Unfair trade practices act; applicability

Current through Vol. 24-12, July 15, 2024
Rule 5. For the purposes of sections 2001 to 2093 of Act No.
				  218 of the Public Acts of 1956, as amended, being SS500.2001 to 500.2093 of the
				  Michigan Compiled Laws, policies of insurance delivered or issued for delivery
				  for which a substitution has been made pursuant to
				  R
				  500.1223 shall constitute a separate class of business
				  from those policies of insurance delivered or issued for delivery for which a
				  substitution pursuant to
				  R
				  500.1223 has not been made.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Property And Casualty Insurance Company Reserves › Section R. 500.1231 - Property and casualty insurers; case basis and bulk loss reserves

Current through Vol. 24-12, July 15, 2024
Rule 1. All property and casualty insurers, including
				  mortgage and land contract guaranty insurers, shall compute and maintain
				  adequate case basis and bulk loss reserves. The method used to determine the
				  loss reserve shall accurately reflect loss frequency and loss severity and
				  shall include components for claims reported and unpaid and for claims incurred
				  but not reported.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Property And Casualty Insurance Company Reserves › Section R. 500.1232 - Mortgage and land contract quaranty insurers; unearned premium reserves

Current through Vol. 24-12, July 15, 2024
Rule 2.
(1) The
				unearned premium reserve for premiums paid in advance on mortgage and land
				contract quaranty insurance policies covering a risk period of more than 1 year
				shall be calculated based upon the annual unearned premium factor specified in
				table 1.
(2) On premiums paid in
				advance for coverage period in excess of 15 years, the unearned portion of the
				premium during the first 15 years of coverage shall be the premium collected
				minus an amount equal to the premium that would have been earned had the
				applicable premiums for 15 years' coverage been received. The premium remaining
				after 15 years shall be released from the unearned premium reserve pro rata
				over the remaining term of coverage.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Property And Casualty Insurance Company Reserves › Section R. 500.1233 - Mortgage and land contract guaranty insurers; contingency loss reserves

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) Mortgage
				and land contract guaranty insurers shall establish and maintain a contingency
				loss reserve for the purpose of protecting insureds against the effect of
				adverse economic cycles and to permit mortgage guaranty insurers to comply with
				section 832(e) of the internal revenue code of 1954, as amended.
(2) The annual contribution to the
				contingency reserve shall be 50% of the earned premium reported in the fire and
				casualty annual statement.
(3) The
				contingency reserve shall be maintained for 120 months. That portion of the
				contingency reserve established and maintained for more than 120 months shall
				be released and shall no longer constitute part of the contingency
				reserve.
(4) The total contingency
				reserve shall be reported as a liability in the financial statement. The change
				in contingency reserve for the year shall be reported in the financial
				statement as a deduction from underwriting income. Appropriate entries shall be
				made in the underwriting and investment exhibit--statement of income of the
				financial statement of the insurer.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Surplus Lines Insurance Fees › Section R. 500.1251 - Surplus Lines Insurance Fees

Current through Vol. 24-12, July 15, 2024
Rule 1.
(1) Subject
				to the limitations set forth in section 1915 of the insurance code of 1956,
				1956 PA 218, MCL  500.1915, a surplus lines licensee issuing a personal or
				commercial surplus lines insurance policy may charge a reasonable fee to cover
				underwriting and other expenses that are unique to surplus lines. Expenses
				unique to surplus lines may include, but are not limited to, issuing,
				processing, or auditing the surplus lines policy, but only to the extent the
				service is provided by the licensee, or the expense is incurred by the
				licensee, and it is documented and verifiable. Expenses unique to surplus lines
				do not include costs incurred in maintaining offices and compensating the
				licensee's employees.
(2) The
				licensee's fee disclosure to the insured under section 1915(2)(b) of the
				insurance code of 1956, 1956 PA 218, MCL  500.1915, must include whether the fee
				was charged in addition to a commission.
(3) The licensee shall provide proof of the
				itemized fees charged and evidence of the requisite disclosure of the fees to
				the director on request.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Rescinded - Fire Insurance - Withholding

Current through Vol. 24-12, July 15, 2024
DEPARTMENT OF INSURANCE AND FINANCIAL
				SERVICES
INSURANCE BUREAU
FIRE INSURANCE--WITHHOLDING
By Authority conferred on the commissioner of insurance by
				  section 2845 of Act No. 218 of the Public Acts of 1956, as amended, being
				  S500.2845 of the Michigan Compiled Laws
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Smoker and Nonsmoker Mortality Tables › Section R. 500.1281 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "1958 CET table" means that mortality
				table developed by the society of actuaries special committee on new mortality
				tables which is incorporated in the NAIC model standard nonforfeiture law for
				life insurance and which is referred to in that model as the commissioners 1958
				extended term insurance table.
(b)
				"1980 CET table" means that mortality table consisting of separate rates of
				mortality for male and female lives which is developed by the society of
				actuaries committee to recommend new mortality tables for valuation of standard
				individual ordinary life insurance, which is incorporated in the 1980 NAIC
				amendments to the model standard nonforfeiture law for life insurance, and
				which is referred to in those models as the commissioners 1980 extended term
				insurance table.
(c) "Composite
				mortality tables" means the mortality tables defined in subdivisions (a), (b),
				(d), and (e) of this rule as they were originally published with rates of
				mortality that do not distinguish between smokers and nonsmokers.
(d) "1958 CSO table" means that mortality
				table developed by the society of actuaries special committee on new mortality
				tables which is incorporated in the NAIC model standard nonforfeiture law for
				life insurance and which is referred to in that model as the commissioners 1958
				standard ordinary mortality table.
(e) "1980 CSO table, with or without 10-year
				select mortality factors" means that mortality table which consists of separate
				rates of mortality for male and female lives, which is developed by the society
				of actuaries committee to recommend new mortality tables for valuation of
				standard individual ordinary life insurance, which is incorporated in the 1980
				NAIC amendments to the model standard valuation law, and standard nonforfeiture
				law for life insurance, and which is referred to in those models as the
				commissioners 1980 standard ordinary mortality table, with or without 10-year
				select mortality factors. The same select factors shall be used for both
				smokers and nonsmokers tables.
(f)
				"NAIC" means national association of insurance commissioners.
(g) "Smoker and nonsmoker mortality tables"
				means the mortality tables with separate rates of mortality for smokers and
				nonsmokers derived from the tables defined in subdivisions (a), (b), (d), and
				(e) of this rule which were developed by the society of actuaries task force on
				smoker and nonsmoker mortality and the California insurance department staff,
				recommended by the NAIC technical staff actuarial group, and adopted by the
				national association of insurance commissioners on December 8, 1983.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Smoker and Nonsmoker Mortality Tables › Section R. 500.1282 - Adoption by reference

Current through Vol. 24-12, July 15, 2024
Rule 2. The 1980 CSO table, with or without 10-year select
				  mortality factors, the 1958 CSO table, the 1980 CET table, the 1958 CET table,
				  and the corresponding smoker and nonsmoker mortality tables are adopted by
				  reference and incorporated in these rules. A copy of the tables may be obtained
				  free of charge from the Michigan Insurance Bureau, P.O. Box 30220, Lansing,
				  Michigan 48909, or at a cost of 20 cents per page from the National Association
				  of Insurance Commissioners, 1125 Grand Avenue, Kansas City, Missouri
				  64106.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Smoker and Nonsmoker Mortality Tables › Section R. 500.1283 - Utilization of the 1958 CSO and CET smoker and nonsmoker mortality tables

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) In
				determining minimum cash surrender values, minimum amounts and minimum periods
				of paid-up nonforfeiture benefits and minimum reserve liabilities, the 1958 CSO
				and CET smoker and nonsmoker mortality tables may only be used as set forth in
				this rule. The requirements of this rule shall apply to any policy of insurance
				delivered or issued for delivery in this state after the operative date of
				paragraphs 9 to 19 of section 4060(5) of Act No. 218 of the Public Acts of
				1956, as amended, being S500.4060(5), paragraphs 9 to 19, of the Michigan
				Compiled Laws, for that policy form, and before January 1, 1989. The 1958 CSO
				smoker and nonsmoker mortality tables may be substituted for the 1980 CSO
				table, with or without 10-year select mortality factors, and the 1958 CET
				smoker and nonsmoker mortality tables may be substituted for the 1980 CET
				table.
(2) For any category of
				insurance issued on female lives with minimum reserve liabilities and minimum
				cash surrender values and amounts of paid-up nonforfeiture benefits determined
				using the 1958 CSO or 1958 CET smoker and nonsmoker mortality tables, such
				minimum values may be calculated according to an age not more than 6 years
				younger than the actual age of the insured.
(3) The 1958 CSO and CET smoker and nonsmoker
				mortality tables shall be utilized only if they are applicable to every
				insurance policy corresponding to the policy form for which the insurer has
				elected to use these tables.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Smoker and Nonsmoker Mortality Tables › Section R. 500.1284 - Utilization of the 1980 CSO and CET smoker and nonsmoker mortality tables

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1) In
				determining minimum cash surrender values, minimum amounts and minimum periods
				of paid-up nonforfeiture benefits and minimum reserve liabilities, the 1980 CSO
				and CET smoker and nonsmoker mortality tables may only be used as set forth in
				this rule. The requirements of this rule shall apply to any policy of insurance
				delivered or issued for delivery in this state after the operative date of
				paragraphs 9 to 19 of section 4060(5) of Act No. 218 of the Public Acts of
				1956, as amended, being S500.4060(5), paragraphs 9 to 19, of the Michigan
				Compiled Laws, for that policy form, at the option of the company. The 1980 CSO
				smoker and nonsmoker mortality tables, with or without 10-year select mortality
				factors, may be substituted for the 1980 CSO table, with or without 10-year
				select mortality tables, and the 1980 CET smoker and nonsmoker mortality tables
				may be substituted for the 1980 CET table.
(2) The 1980 CSO and CET smoker and nonsmoker
				mortality tables are sex-distinct tables. They may be gender blended in
				accordance with the provisions of
				R
				500.1221 to
				R 500.1224.
(3) The 1980 CSO and CET smoker and nonsmoker
				mortality tables shall be utilized only if they are applicable to every
				insurance corresponding to the policy form for which the insurer has elected to
				use these tables.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Smoker and Nonsmoker Mortality Tables › Section R. 500.1285 - Insurance plan with separate rates for smokers and nonsmokers; selection of method to determine issues of plan

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) For each
				plan of insurance with separate rates for smokers and nonsmokers an insurer may
				select 1 of the following methods to apply to such plan:
(a) Use composite mortality tables to
				determine minimum reserve liabilities, minimum cash surrender values, and
				amounts of paid-up nonforfeiture benefits.
(b) Use smoker and nonsmoker mortality tables
				to determine the valuation net premiums and additional minimum reserves, if
				any, required by section 834(6) of Act No. 218 of the Public Acts of 1956, as
				amended, being S500.834(6) of the Michigan Compiled Laws, and use composite
				mortality tables to determine the basic minimum reserves, minimum cash
				surrender values, and amounts of paid-up nonforfeiture benefits.
(c) Use smoker and nonsmoker mortality tables
				to determine minimum reserve liabilities, minimum cash surrender values, and
				amounts of paid-up nonforfeiture benefits.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Fire And Inland Marine Insurance Rates › Section R. 500.1301 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Classification" means a grouping of
				individuals or risks on the basis of 1 or more characteristics for purposes of
				measuring and rating differences in anticipated losses or expenses, or both.
				For purposes of these rules, a classification shall not include a grouping of
				individuals or risks solely for statistical data gathering purposes.
(b) "Code" means Act No. 218 of the Public
				Acts of 1956, as amended, being S500.100 et seq. of the Michigan Compiled Laws,
				and known as the insurance code of 1956.
(c) "Commissioner" means the Michigan
				commissioner of insurance and the designees of the commissioner.
(d) "Loss portion" means that portion of a
				rate which is attributable to provisions for incurred losses and allocated loss
				adjustment expenses.
(e) "Loss
				ratio" means, for purposes of
				R
				500.1307(4)(e), any of the following
				ratios for a specified time period, as appropriate for the context of
				evaluation:
(i) The ratio of actual incurred
				losses and allocated loss adjustment expenses to total earned premiums at
				collected rate levels.
(ii) The
				ratio of actual incurred losses and allocated loss adjustment expenses to total
				earned premiums at current rate levels.
(iii) The ratio of reasonably anticipated
				incurred losses and allocated loss adjustment expenses to total estimated
				earned premiums at proposed rate levels.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Fire And Inland Marine Insurance Rates › Section R. 500.1303 - Construction of rules

Current through Vol. 24-12, July 15, 2024
Rule 3. These rules shall be construed to prohibit insurers
				  from establishing and using casualty insurance rates that are excessive,
				  inadequate, or unfairly discriminatory and shall be construed to protect
				  insurance consumers from the adverse consequences of such
				  rates.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Fire And Inland Marine Insurance Rates › Section R. 500.1304 - Reporting guidelines

Current through Vol. 24-12, July 15, 2024
Rule 4. Subject to section 2664 of the code, the commissioner
				  may issue reasonable guidelines and procedures relating to the collection and
				  reporting of data for purposes of evaluating rates and classifications or the
				  extent and nature of competition. The guidelines and procedures shall provide
				  for the option of using reasonable sampling techniques, when practicable,
				  provided that any data thereby obtained are reportable in a uniform and
				  consistent manner as may be required.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Fire And Inland Marine Insurance Rates › Section R. 500.1305 - Excessive rates

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) For the
				purposes of section 2603(1)(d) of the code, a rate is unreasonably high for the
				insurance coverage provided if it is unreasonably high in relation to
				anticipated losses or expenses, or both, or to the uncertainty of loss for the
				insurance coverage provided.
(2) A
				determination regarding the existence of a reasonable degree of competition,
				with respect to the classification, kind, or type of risks to which a rate is
				applicable, shall give due consideration to all of the following:
(a) The relevant market for the coverage or
				the type of insurance to which the rate applies.
(b) The number of insurers and the number of
				self-insurers actively engaged in writing or providing the coverage or type of
				insurance in the relevant market.
(c) The distribution of rates and market
				shares for such insurers in the relevant market. Market shares may be measured
				either by premiums or exposures.
(d) Past and prospective trends in the
				availability of coverage and coverage options for insurance of that type in the
				relevant market.
(e) Profits
				attributable to insurance of that type in relation to the profitability of
				other types of insurance, to the uncertainty of loss for that and other types
				of insurance, and to the amount of capital and surplus funds available to
				support premium writings for that and other types of insurance.
(f) The ability and potential for firms to
				enter and exit the relevant market and for financial capital and surplus funds
				to be allocated to, and to be removed from, the relevant market.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Fire And Inland Marine Insurance Rates › Section R. 500.1306 - Inadequate rates

Current through Vol. 24-12, July 15, 2024
Rule 6. For purposes of section 2603(1)(d) of the code, both
				  of the following provisions apply:
(a)
				A rate is unreasonably low for the insurance coverage provided if it is
				unreasonably low in relation to anticipated losses or expenses, or both, or to
				the uncertainty of loss for the insurance coverage provided.
(b) An applicant who is in good faith
				entitled to procure insurance through ordinary methods is an individual or risk
				in the population, defined by the classification to which the rate applies,
				that exhibits a willingness and a financial ability to purchase such insurance
				at the rate in question.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Fire And Inland Marine Insurance Rates › Section R. 500.1308 - Expense provisions

Current through Vol. 24-12, July 15, 2024
Rule 8.
(1) The
				expense portion of a rate shall, with regard to each category of expense, be
				examined and evaluated independently of the loss portion of the rate. Expenses
				shall not be presumed to change by the same percentage as losses are
				anticipated to change.
(2)
				Predictions of future expense costs shall give due consideration to trends and
				changes in historical expense levels, in actual or reasonably allocated
				expenses incurred, and in external expense indices and indicators.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Fire And Inland Marine Insurance Rates › Section R. 500.1309 - Expense allocation

Current through Vol. 24-12, July 15, 2024
Rule 9.
(1) Expense
				provisions for each category of expenses shall be reasonably allocated among
				classifications in a manner that equitably reflects variations, if any, in the
				manner in which such expenses are anticipated to be incurred with respect to
				the groups of individuals or risks defined by those classifications. Expenses,
				other than allocated loss adjustment expenses, shall not be presumed to be
				incurred proportionally to classification relativities based on anticipated
				losses.
(2) Expense provisions for
				premium taxes, if any, shall reflect the applicable premium tax rate.
(3) Expense provisions for each other
				category of expenses shall be reasonably allocated among classifications based
				on losses, coverages, exposures, or other basis that equitably measures the
				variations, if any, in the manner in which such expenses are anticipated to be
				incurred with respect to the classifications. Expense allocation methods may
				include percentage-of-premium, uniform-per-coverage, uniform-per-exposure, or
				other basis, as appropriate and justified.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Fire And Inland Marine Insurance Rates › Section R. 500.1310 - Exemptions from rules

Current through Vol. 24-12, July 15, 2024
Rule 10.
(1) The
				commissioner may, by order, exempt a coverage or type of insurance from the
				application of 1 or more individual rules if he or she determines that
				application of the rule or rules will be inappropriate based on the unique
				characteristics of the coverage or type of insurance.
(2) An insurer or group of insurers may, in
				writing, request that the commissioner by order exempt a particular coverage or
				type of insurance from the application of 1 or more of these rules pursuant to
				subrule (1) of this rule. An insurer or group of insurers filing a request
				under this rule may, within 30 days after receiving written notice by the
				commissioner of a denial of the request, appeal to the commissioner. After an
				evidentiary hearing upon not less than 10 days' written notice to the appellant
				or appellants, the commissioner shall affirm or reverse the decision.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Workers' Compensation Insurance › Section R. 500.1351 - Premium dispute; insurer's responsibility to provide information upon conclusion of the personal meeting

Current through Vol. 24-12, July 15, 2024
Rule 1.
(1) An
				insured who has reason to believe that the insured's premium charges for
				workers' compensation insurance are excessive as a result of unreasonable
				reserves or the unreasonable redemption of a claim or claims is entitled to a
				personal meeting with a management representative of the insurer. Upon
				conclusion of the personal meeting, the insurer shall provide the following
				information to the insured:
(a) The action
				taken by the insurer.
(b) The
				facts, with supporting documentation, upon which the action is based.
(c) A statement explaining the insured's
				right to appeal the matter to the commissioner within 30 days after receipt of
				the information provided pursuant to this rule.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Workers' Compensation Insurance › Section R. 500.1352 - Premium dispute; appeal to commissioner

Current through Vol. 24-12, July 15, 2024
Rule 2.
(1) If the
				personal meeting involving the insured and the insurer fails to resolve the
				dispute, the insured is entitled to bring the matter before the commissioner
				for resolution. The commissioner shall rule on the reasonableness of reserves
				or redemptions only with respect to their application in an insurer's rating
				system. In making a ruling on the reasonableness of a reserve calculation used
				in applying an insurer's rating system, the commissioner shall take into
				account the following factors:
(a) Whether or
				not the initial reserve amount is consistent with the information about the
				claim available to the insurer at the time the initial case reserve was
				created.
(b) The presence or
				absence of reasonable adjustments to the reserve as additional information
				becomes available.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Workers' Compensation Insurance › Section R. 500.1353 - Review of premium dispute; notice; responsibilities of commissioner

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) When
				conducting a review of a premium dispute through written materials, the
				commissioner shall, by first-class mail, notify the insurer of the matter under
				consideration and inform the insurer of the time period within which any reply
				shall be made. Such notification shall be given within 10 working days after
				the commissioner receives the appeal.
(2) When conducting a review of a dispute
				through a meeting with the parties involved, the commissioner shall do the
				following within 10 working days after receiving the complaint:
(a) Set a time for the meeting and notify the
				parties, by first-class mail, of the time and place of the meeting.
(b) Inform the insurer of the time period
				within which any reply shall be made.
(c) The commissioner shall conduct meetings
				in a manner which allows the disputing parties to present relevant facts,
				records, dates, times, and names to substantiate their positions.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Workers' Compensation Insurance › Section R. 500.1354 - Basis for premium dispute decisions by the commissioner

Current through Vol. 24-12, July 15, 2024
Rule 4. The commissioner shall base each decision upon
				  written materials submitted by the parties and the statements of the parties at
				  the meeting, if any. Failure of either party to supply any information in a
				  timely manner shall result in a decision based upon information available to
				  the commissioner at the time of the decision.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Workers' Compensation Insurance › Section R. 500.1355 - Premium dispute decisions by the commissioner

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) When
				reviewing a premium dispute through written materials, the commissioner shall
				prepare a written decision within 10 working days after the insurer submits a
				reply to the notice issued pursuant to
				R 500.1353(1) or,
				if a reply is not submitted, within 10 working days after the time for
				submitting a reply has expired.
(2)
				If a meeting is held, the commissioner shall prepare a written decision within
				10 working days after the meeting is concluded.
(3) The commissioner shall send copies of the
				written decision to the parties by first-class mail.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Workers' Compensation Insurance › Section R. 500.1357 - Data reporting; "statistical plan" defined

Current through Vol. 24-12, July 15, 2024
Rule 7.
(1) Each
				insurer subject to section 2407 of Act No. 218 of the Public Acts of 1956, as
				amended, through S500. 2407 of the Michigan Compiled Laws, shall file with the
				designated advisory organization all of the historical information relating to
				premiums, losses, and exposures required by the statistical plans of the
				designated advisory organization that have been approved by the
				commissioner.
(2) As used in this
				rule, "statistical plan" means a procedure for collecting information related
				to workers' compensation insurance premiums, losses, or exposures on a routine
				or special call basis from all insurers subject to section 2407 of Act No. 218
				of the Public Acts of 1956, as amended, or from a sample of such
				insurers.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Workers' Compensation Insurance › Section R. 500.1358 - Data reporting; timing of designated advisory organization reports to data collection agency

Current through Vol. 24-12, July 15, 2024
Rule 8. The designated advisory organization shall provide to
				  the data collection agency annual reports of loss and exposure data by
				  classification for the policy years and in the formats specified by the data
				  collection agency not later than November 1 of each year.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Workers' Compensation Insurance › Section R. 500.1359 - Data reporting; designated advisory organization reports to commissioner

Current through Vol. 24-12, July 15, 2024
Rule 9. The designated advisory organization shall provide to
				  the commissioner such reports of data which it collects that the commissioner
				  needs to monitor competition in the workers' compensation insurance market and
				  to evaluate the effect of law changes and court decisions.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Advertisement Of Life Insurance And Annuities › Section R. 500.1371 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Advertisement" means material designed
				to create public interest in life insurance or annuities or in an insurer, or
				to induce the public to purchase, increase, modify, reinstate, or retain a
				policy, including all of the following:
(i)
				Printed and published material, audiovisual material, and descriptive
				literature of an insurer used in any of the following:
(A) Director mail.
(B) Newspapers.
(C) Magazines.
(D) Radio and television scripts.
(E) Billboards and similar
				displays.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Advertisement Of Life Insurance And Annuities › Section R. 500.1375 - Form and contents of advertisements

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1)
				Advertisements shall be truthful and not misleading in fact or by implication.
				The form and content of an advertisement of a policy shall be sufficiently
				complete and clear so as to avoid deception. Whether an advertisement is
				misleading or deceptive shall be determined from the overall impression that
				the advertisement may be reasonably expected to create.
(2) An advertisement shall not use the terms
				"investment," "investment plan," "expansion plan," "profit," "profits," "profit
				sharing," "interest plan," "savings," "savings plan," or other similar terms in
				connection with a policy in a context or under circumstances or conditions
				which mislead a prospective insured to believe that the prospective insured or
				beneficiary will or may receive something other than a policy or some benefit
				not available to other persons of the same class and equal expectation of
				life.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Advertisement Of Life Insurance And Annuities › Section R. 500.1379 - Identification of insurer and policy

Current through Vol. 24-12, July 15, 2024
Rule 9.
(1) The name
				of the insurer shall be clearly identified. If any specific individual policy
				is advertised, it shall be identified either by form number or other
				appropriate description. An advertisement shall not use a trade name, an
				insurance group designation, name of the parent company of the insurer, name of
				a particular division of the insurer, service mark, slogan, symbol, or other
				device or reference without disclosing the name of the insurer, in equal or
				greater prominence and in close proximity thereto, if the advertisement would
				be misleading or deceptive as to the true identity of the insurer or create the
				impression that a company other than the insurer has any responsibility for the
				financial obligation under a policy.
(2) An advertisement or related material
				shall not use any combination of words, symbols, or physical materials which by
				their content, phraseology, shape, color, or other characteristics are so
				similar to a combination of words, symbols, or physical materials used by a
				governmental program or agency or otherwise appear to be of such a nature that
				they tend to mislead prospective insureds into believing that the solicitation
				is in some manner connected with such governmental program or agency.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Advertisement Of Life Insurance And Annuities › Section R. 500.1381 - Advertising beyond limits of licensing jurisdiction; recommendation, endorsement, or rating of insurer by governmental entity

Current through Vol. 24-12, July 15, 2024
Rule 11.
(1) An
				advertisement which is intended to be seen or heard beyond the limits of the
				jurisdiction in which the insurer is licensed shall not imply licensing beyond
				such limits.
(2) An advertisement
				may state that an insurer is licensed in the state where the advertisement
				appears, if it does not exaggerate such fact or suggest or imply that competing
				insurers may not be so licensed.
(3) An advertisement shall not state or
				create the impression that the insurer, its financial condition or status, the
				payment of its claims, or the merits, desirability, or advisability of its
				policy forms or kinds of plans of insurance are recommended or endorsed by any
				governmental entity, unless such is the fact. The nature and extent of any
				recommendation, endorsement, or rating shall be fully explained.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Advertisement Of Life Insurance And Annuities › Section R. 500.1383 - False and misleading statements; recommendation or rating by commercial rating organization

Current through Vol. 24-12, July 15, 2024
Rule 13. An advertisement shall not contain statements,
				  pictures, or illustrations which are false or misleading, in fact or by
				  implication, with respect to the assets, liabilities, insurance in force,
				  corporate structure, financial condition, age, or relative position of the
				  insurer in the insurance business. An advertisement shall not contain a
				  recommendation or rating by any commercial rating organization unless it
				  clearly defines the scope and extent of the recommendation or
				  rating.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Advertisement Of Life Insurance And Annuities › Section R. 500.1385 - Advertisements disseminated in state; maintenance of specimen copy; filing with the commissioner; certificate of compliance

Current through Vol. 24-12, July 15, 2024
Rule 15.
(1) An
				insurer shall maintain at its home or principal office a complete file
				containing a specimen copy of printed, published, or prepared advertisements of
				its policies hereafter disseminated in this state, with a notation indicating
				the manner and extent of distribution and the form number of any policy
				advertised. Such file shall be subject to inspection by the commissioner. All
				such advertisements shall be maintained in the file for a period of either 4
				years or until the filing of the next regular report on the examination of the
				insurer, whichever period is longer.
(2) An insurer subject to the provisions of
				these rules shall file with the commissioner, with its annual statement, a
				certificate of compliance executed by an authorized officer of the insurer
				wherein it is stated, if such is the fact, that to the best of the officer's
				knowledge, information, and belief, the advertisements which were disseminated
				by, or on behalf of, the insurer in this state during the preceding statement
				year, or during the portion of such year when these rules were in effect,
				compiled in all respects with the provisions of these rules and the insurance
				laws of this state as implemented and interpreted by these rules.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Advertisement Of Life Insurance And Annuities › Section R. 500.1387 - Conflict with other rules

Current through Vol. 24-12, July 15, 2024
Rule 17. It is not intended that these rules conflict with or
				  supersede any rules currently in force or subsequently adopted in this state
				  governing specific aspects of the sale or replacement of life insurance or
				  annuities, including, but not limited to, rules dealing with life insurance
				  cost comparison indices, deceptive practices in the sale of life insurance, and
				  replacement of life insurance policies. Consequently, no disclosure required
				  under any such rules shall be deemed to be an advertisement within the meaning
				  of these rules.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Essential Insurance › Section R. 500.1501 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1.
(1) As used
				in these rules:
(a) "Classification" means a
				grouping of individuals or risks on the basis of 1 or more characteristics for
				purposes of measuring and rating differences in anticipated losses or expenses,
				or both. A classification does not include a grouping of individuals or risks
				solely for statistical data gathering purposes.
(b) "Code" means the insurance code of 1956,
				1956 PA 218, MCL 500.100 to 500.8302.
(c) "Complaint" means a written statement by
				a person to an insurer, a producer, or the director claiming that an insurer or
				producer has improperly denied him or her automobile insurance or home
				insurance or has charged an incorrect premium for automobile insurance or home
				insurance.
(d) "Denial" or "denied"
				means both declination and termination.
(e) "Incorrect premium" means a premium
				charged for automobile insurance or home insurance that is not consistent with
				a rate or rating plan or classification approved by the department.
(f) "Loss portion" means the portion of a
				rate that is attributable to provisions for incurred losses and allocated loss
				adjustment expenses.
(g) "Loss
				ratio" means any of the following ratios for a specified time period, as
				appropriate for the context of evaluation:
(i)
				The ratio of actual incurred losses to total earned premiums at collected rate
				levels.
(ii) The ratio of actual
				incurred losses to total earned premiums at current rate levels.
(iii) The ratio of reasonably anticipated
				incurred losses to total estimated earned premiums at proposed rate
				levels.
(h) "Rating
				cell" means a group of individuals or risks for which a single rate is
				determined when 2 or more rating classifications are combined to define a
				population of individuals or risks for rating purposes.
(i) "Relativity" means either the ratio of
				rates for any 2 rating classifications or the absolute difference in rates for
				any 2 rating classifications, whichever is applicable for a particular rating
				system.
(j) "Uncertainty of loss"
				means a measure of the nature and the extent of the variability of actual
				losses for a group of individuals or risks from the mean anticipated loss for
				the group and includes other similar measures of risk.
(k) "Underwriting" means the offer or refusal
				to insure, the offer or refusal to continue to insure, or the limitation of the
				amount of coverage available to, an individual, risk, or class of individuals
				or risks.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Essential Insurance › Section R. 500.1502 - Other insurance coverages to be considered to be automobile insurance

Current through Vol. 24-12, July 15, 2024
Rule 2. In addition to the insurance coverages described in
				  section 2102(2) (a), (b), and (c) of the code, MCL 500.2102, all of the
				  following insurance coverages are considered to be automobile insurance under
				  section 2102(2)(d) of the code, MCL 500.2102:
(a) Insurance coverage commonly known as
				"uninsured motorist insurance," for both bodily injury and property damage
				claims.
(b) Insurance coverage for
				the liability existing under section 3135(3)(e) of the code, MCL
				500.3135.
(c) Insurance coverage
				commonly known as "underinsured motorist insurance."
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Essential Insurance › Section R. 500.1503 - Excessive rates

Current through Vol. 24-12, July 15, 2024
Rule 3. For the purposes of section 2109(1)(a) of the code,
				  MCL 500.2109, both of the following apply in determining whether a rate for
				  automobile insurance or home insurance is excessive:
(a) A rate is unreasonably high for the
				insurance coverage provided if it is unreasonably high in relation to
				anticipated losses or expenses, or both, or to the uncertainty of loss for the
				insurance coverage provided.
(b) A
				determination regarding the existence of a reasonable degree of competition
				must give due consideration to, at a minimum, all of the following:
(i) The relevant market for the coverage or
				the type of insurance to which the rate applies.
(ii) The number of insurers and the number of
				self-insurers actively engaged in underwriting or providing the coverage or
				type of insurance in the relevant market.
(iii) The distribution of rates and market
				shares for those insurers in the relevant market. Market shares may be measured
				either by premiums or exposures.
(iv) Past and prospective trends in the
				availability of coverage and coverage options for insurance of that type in the
				relevant market.
(v) Profits
				attributable to insurance of that type in relation to the profitability of
				other types of insurance, to the uncertainty of loss for that and other types
				of insurance, and to the amount of capital and surplus funds available to
				support premium underwritings for that and other types of insurance.
(vi) The ability and potential for insurers
				to enter and exit the relevant market and for financial capital and surplus
				funds to be allocated to, and to be removed from, the relevant
				market.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Essential Insurance › Section R. 500.1504 - Inadequate rates

Current through Vol. 24-12, July 15, 2024
Rule 4. For purposes of section 2109(1)(b) of the code, MCL
				  500.2109, all of the following apply in determining whether a rate for
				  automobile insurance or home insurance is inadequate:
(a) A rate is unreasonably low for the
				insurance coverage provided if it is unreasonably low in relation to
				anticipated losses or expenses, or both, or to the uncertainty of loss for the
				insurance coverage provided.
(b)
				Applicants who are in good faith entitled to procure the insurance through
				ordinary methods are the persons who are eligible persons, as defined in
				section 2103(1) or (2) of the code, MCL 500.2103, with respect to that
				insurance.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Essential Insurance › Section R. 500.1506 - Expense provisions

Current through Vol. 24-12, July 15, 2024
Rule 6.
(1) The
				expense portion of a rate must, with regard to each category of expense, be
				examined and evaluated independent of the loss portion of the rate. Expenses
				must not be presumed to change by the same percentage as losses are anticipated
				to change.
(2) Predictions of
				future expense costs must give due consideration to trends and changes in
				historical expense levels, in actual or reasonably allocated expenses incurred,
				and in external expense indices and indicators.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Essential Insurance › Section R. 500.1507 - Expense allocation

Current through Vol. 24-12, July 15, 2024
Rule 7.
(1) Expense
				provisions for each category of expenses must be reasonably allocated among
				classifications in a manner that equitably reflects variations, if any, in the
				manner in which those expenses are anticipated to be incurred with respect to
				the groups of individuals or risks defined by those classifications. Expenses,
				other than allocated loss adjustment expenses, must not be presumed to be
				incurred proportionally to classification relativities based on anticipated
				loss.
(2) Expense provisions for
				premium taxes, if any, must reflect the applicable premium tax rate.
(3) Expense provisions for each other
				category of expenses must be reasonably allocated among classifications based
				on losses, coverages, exposures, or other basis that equitably measures the
				variations, if any, in the manner in which those expenses are anticipated to be
				incurred with respect to the classifications. Expense allocation methods may
				include percentage-of-premium, uniform-per-coverage, uniform-per-exposure, or
				other basis, as appropriate and justified.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Essential Insurance › Section R. 500.1509 - Complaint-resolution process; information provided following private informal managerial-level conference

Current through Vol. 24-12, July 15, 2024
Rule 9.
(1) Upon the
				conclusion of a private informal managerial-level conference, the insurer shall
				provide the person making the complaint the following information in writing
				and in language understandable to a person of ordinary intelligence:
(a) The action taken by the insurer to
				resolve the dispute.
(b) The facts
				and documentation supporting the action.
(c) The specific section or sections of the
				law supporting the action.
(d) A
				statement explaining the person's right to submit a complaint to the director
				and for a review and determination within 120 days after the date that the
				information under this rule is mailed or provided if the person disagrees with
				the proposed resolution included in the information. The statement must also
				provide instructions regarding how to submit a complaint to the director and
				request a review and determination, provide the department's toll-free number
				and mailing address, and clearly indicate the date that the information under
				this rule is mailed or provided.
(e) A statement describing the status of the
				automobile or home insurance coverage or coverages involved.