Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Loss Ratios Applicable to Individual or Family Expense Coverage › Section R. 500.802 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 2.
(1) "Act"
				means Act No. 218 of the Public Acts of 1956, as amended, being SS500.100 to
				500.8302 of the Michigan Compiled Laws.
(2) "Anticipated loss ratio" means the ratio
				at the time of policy filing, or at a time of subsequent rate revisions, of the
				present value of all expected future benefits, excluding dividends, to the
				present value of all future premiums, less dividends, based on a credible
				premium volume over a reasonable period of time with proper weight given to
				trends and other relevant factors. Statistical data relating to expected future
				benefits shall be obtained from policies of insurance sold or to be sold in
				this state when available.
(3)
				"Collectively renewable insurance" means all insurance which is made available
				on an individual basis under mass enrollment procedures to groups of persons
				under a plan sponsored by an employer, an association or a union or affiliated
				associations or unions or a group of individuals supplying materials to a
				central point of collection or handling a common product or commodity, under
				which the insurer has agreed that renewal will not be refused, subject to any
				specified age limit, while the insured remains a member of the group specified
				in the agreement unless the insurer simultaneously refuses renewal to all other
				policies in the same group, or all policies bearing the same form
				number.
(4) "Guaranteed renewable
				insurance" means all individual insurance which grants an insured the right to
				continue the policy in force by the timely payment of premiums until at least
				age 50, or in the case of a policy issued after age 44, for at least 5 years
				from the date of issue of the policy, during which period the insurer has no
				right to make unilaterally any change in any provision of the policy while the
				policy is in force, except that the insurer may make changes in premium rates
				by classes.
(5) "Individual
				accident insurance" means all insurance which covers such losses as are due to
				accident only.
(6) "Noncancellable
				insurance" or "noncancellable and guaranteed renewable insurance" means all
				insurance which gives the insured the right to continue the insurance in force
				by the timely payment of premiums set forth in the policy until at least age
				50, or in the case of a policy issued after age 44, for at least 5 years from
				its date of issue, during which period the insurer has no right to make
				unilaterally any change in any provision of the policy while it is in
				force.
(7) "Nonrenewable for stated
				reasons only insurance" means all individual insurance which limits the
				insurer's right of nonrenewal to stated reasons other than deterioration of
				health.
(8) "Optionally renewable
				insurance: means all individual insurance which allows the insurer unhampered
				right of nonrenewal.
(9) "Rated by
				age insurance" means all individual insurance where the issue age is 65 years
				or more.