reglab/statecodes huggingface dataset:
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › REPLACEMENT OF LIFE INSURANCE POLICIES › Section R. 500.602 - Duties of agents

Current through Vol. 24-12, July 15, 2024
Rule 602.
(1) A
				  life insurance agent shall obtain, with, or as a part of, each application for
				  life insurance, a statement signed by the applicant as to whether the insurance
				  for which application is made will replace existing life insurance.
(2) A life insurance agent shall submit to
				  the insurer, in connection with each application for life insurance, a
				  statement as to whether, to the best of his or her knowledge, replacement is
				  involved in the transaction.
(3) If
				  replacement is involved in a transaction, the life insurance agent shall do all
				  of the following:
(a) Obtain, with, or as a
				  part of, each application, a list of all existing life insurance policies
				  proposed to be replaced.
(b)
				  Present to the applicant, not later than at the time of taking the application,
				  a completed information statement signed by the agent and a notice to
				  applicants regarding replacement of life insurance, in such forms as are
				  prescribed by the commissioner, and leave the forms with the applicant for his
				  or her records.
(c) Leave with the
				  applicant the original or a copy of all sales proposals used for presentation
				  to the applicant.
(d) Have the
				  applicant acknowledge receipt of the completed information statement and the
				  notice to applicant regarding replacement of life insurance.
(e) Submit with the application to the
				  insurer a copy of any sales proposal used, the completed information statement,
				  and the name of each insurer which issued any life insurance proposed to be
				  replaced.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › REPLACEMENT OF LIFE INSURANCE POLICIES › Section R. 500.603 - Duties of insurers

Current through Vol. 24-12, July 15, 2024
Rule 603.
(1) A
				  life insurer shall inform its field representatives of the requirements of this
				  rule and
				  R
				  500.601,
				  R
				  500.602, and
				  R 500.604 to
				  R
				  500.606.
(2) A life insurer shall require, with, or as
				  a part of, each application for life insurance, a statement signed by the
				  applicant as to whether the insurance for which application is made will
				  replace existing life insurance.
(3) A life insurer shall require, in
				  connection with each application for life insurance, a statement signed by the
				  agent as to whether, to the best of his or her knowledge, replacement is
				  involved in the transaction.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › REPLACEMENT OF LIFE INSURANCE POLICIES › Section R. 500.604 - Duties where replacement involved; notice; filing

Current through Vol. 24-12, July 15, 2024
Rule 604. If a replacement is involved in a transaction,
					 the life insurer shall do all of the following:
(a) Require, with, or as part of each
				  application, a list prepared by the agent representing, to the best of his or
				  her knowledge, all of the existing life insurance policies proposed to be
				  replaced.
(b) Obtain all of the
				  following:
(i) A copy of any sales proposal
				  used.
(ii) The completed
				  information statement.
(iii) Proof
				  of receipt by the applicant of the information statement and the notice to
				  applicants regarding replacement of life insurance.
(iv) The name of each insurer which issued
				  any life insurance being replaced.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › REPLACEMENT OF LIFE INSURANCE POLICIES › Section R. 500.605 - Exceptions

Current through Vol. 24-12, July 15, 2024
Rule 605.
(1)
										R
				  500.602,
				  R
				  500.603, and
				  R 500.604 do not apply to
				  transactions in which the application for the new life insurance is made to the
				  same insurer that issued the existing life insurance or to an affiliate of the
				  existing insurer.
(2)
										R
				  500.602,
				  R
				  500.603, and
				  R 500.604 do not apply to
				  transactions in which the new life insurance is to be provided under any of the
				  following plans, if full and complete disclosure of all material facts is made
				  to the administrator of any plan to be replaced:
(a) A group term life insurance
				  policy.
(b) Policies covering
				  employees of an employer, debtors of a creditor, or members of an association
				  or other eligible organization, which policies are distributed on a mass
				  merchandising basis and which do not involve direct contact between the covered
				  person and the agent.
(c) Life
				  insurance policies issued in connection with a pension, profit sharing, or
				  other benefit plan qualifying for tax-deductibility of premiums.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › REPLACEMENT OF LIFE INSURANCE POLICIES › Section R. 500.606 - Penalties

Current through Vol. 24-12, July 15, 2024
Rule 606. An agent who fails to comply with
					 R
					 500.601,
					 R
					 500.602, and
					 R
					 500.605 is rebuttably presumed to have given cause for
					 revocation or suspension of his or her license or for imposition of a civil
					 penalty for each such failure within the meaning of sections 1242 and 1244 of
					 Act No.218 of the Public Acts of 1956, as amended, being SS500.1242 and
					 500.1244 of the Michigan Compiled Laws.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › DISCRETIONARY GROUP LIFE INSURANCE AND GROUP LIFE INSURANCE › Section R. 500.612 - Grounds of eligibility

Current through Vol. 24-12, July 15, 2024
Rule 612.
(1) The
				  commissioner shall not issue a certificate of eligibility to a group having no
				  logical reason for existence except to fraction or partition a risk.
(3) The commissioner shall not issue a
				  certificate of eligibility if the insurance is not to be available to all
				  members of the group who are not excluded under the provisions of the insurer's
				  acceptability criteria for the group.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › DISCRETIONARY GROUP LIFE INSURANCE AND GROUP LIFE INSURANCE › Section R. 500.615 - Group term life insurance; contributions of certificate holders

Current through Vol. 24-12, July 15, 2024
Rule 615. Whenever the insurance code of 1956 or a rule
					 issued pursuant thereto requires that premiums on group term life insurance be
					 paid jointly by the certificate holder and some other person, the contract of
					 insurance shall limit the contributions of the certificate holders so that the
					 contributions do not exceed 75% of the total premium for the coverage, and do
					 not exceed the amounts specified in the following schedule:
Maximum Contribution to Life Premium from Certificate
					 Holder Rate at Which Per Thousand of Life Insurance Policy is Written Monthly
					 Weekly
Standard 60 cents 14 cents Standard plus $1.00 70 cents 16
					 cents Standard plus $2.00 75 cents 17 cents Standard plus $3.00 or more 80
					 cents 18 cents
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.621 - Contracts on a variable basis; authorization

Current through Vol. 24-12, July 15, 2024
Rule 621. A contract on a variable basis authorized by
					 section 925 of the insurance code of 1956 shall not be delivered or issued for
					 delivery in this state unless the insurer is acting under a certificate of
					 authority which specifically provides for issuance of contracts on a variable
					 basis, and the insurer has filed with the commissioner, within 30 days after
					 adoption, the latest resolution of its board of directors governing the
					 separate account which is to be used in connection with the contract on a
					 variable basis.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.622 - Certificates of authority; applications

Current through Vol. 24-12, July 15, 2024
Rule 622. Application for a certificate of authority which
					 specifically provides for issuance of contracts on a variable basis shall be
					 made to the commissioner in writing and shall be accompanied by all of the
					 following:
(a) A certified copy of the
				  resolution of the insurer's board of directors establishing the separate
				  account.
(b) A written general
				  description of the kinds of variable contracts the insurer intends to
				  issue.
(c) A written general
				  description of the program the insurer intends to use to market the
				  contracts.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.623 - Certificates of authority; issuance

Current through Vol. 24-12, July 15, 2024
Rule 623.
(1) The
				  commissioner shall not issue a certificate of authority which specifically
				  provides for issuance of contracts on a variable basis to an insurer unless all
				  of the following are true:
(a) The insurer
				  possesses capital and surplus, if a stock insurer, or surplus, if a mutual
				  insurer, of at least $1,500,000.00.
(b) The insurer, if an alien insurer, has
				  established a separate trust account for contracts on a variable basis under a
				  trust indenture approved by the commissioner.
(c) The commissioner is satisfied that the
				  insurer's condition or method of operation in connection with the issuance of
				  contracts on a variable basis will not render its operation hazardous to its
				  policyholders or the public.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.624 - Separate accounts

Current through Vol. 24-12, July 15, 2024
Rule 624.
(1) An
				  insurer issuing contracts on a variable basis shall not use the same separate
				  account for both annuity contracts on a variable basis and contracts of life
				  insurance on a variable basis.
(2)
				  An insurer issuing contracts on a variable basis shall maintain in each
				  separate account assets having a value equal to the reserves and other
				  reasonable liabilities and obligations with respect to the account. If the
				  securities and exchange commission requires that an account have a minimum
				  balance before solicitation is permitted, the insurer may participate in the
				  separate account in order to comply with the requirement but the initial value
				  of the amount so invested shall not exceed by more than 25% the amount required
				  by the securities and exchange commission, and the insurer shall redeem the
				  units so purchased within 6 months after the account acquires other assets
				  sufficient to satisfy the requirements of the securities and exchange
				  commission. Any surplus or deficit which occurs in a separate account because
				  of mortality experience guaranteed by the insurer shall be adjusted at least
				  annually at the end of each calendar year by withdrawals from or additions to
				  the separate account so that the assets of the account equal the
				  liabilities.
(3) A separate account
				  shall not be charged with liabilities arising out of other separate accounts or
				  out of other business of the insurer unless the liabilities have a specific and
				  determinable relation to or dependence upon the separate account.
(4) Assets allocated to a separate account
				  shall be valued at their market value on the date of valuation. Where possible,
				  market values of common stocks shall be established by quotations of securities
				  exchanges located in the United States or Canada or by credible
				  over-the-counter market quotations. Where such quotations are not available,
				  the assets shall be valued in accordance with reasonable rules applicable to
				  the separate account or if there are no reasonable rules to be applicable, in
				  accordance with reasonable valuation procedures prescribed by the
				  commissioner.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.625 - Separate account committees

Current through Vol. 24-12, July 15, 2024
Rule 625. Any provisions of the insurance code of 1956 or
					 of rules promulgated pursuant thereto which concern conflicts of interest of
					 officers or directors of insurers are equally applicable to members of any
					 separate account's committee, board or other similar body. An officer, director
					 or trustee of an insurer or any member of the board of managers, board of
					 trustees, or board of directors of a separate account shall not receive, either
					 directly or indirectly, any commission or other forms of emolument which is
					 related to the purchase or disposal of assets of the insurer or of any of its
					 separate accounts.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.626 - Insurance law applicable

Current through Vol. 24-12, July 15, 2024
Rule 626. Provisions of the insurance code of 1956 which
					 apply to contracts of life insurance or to annuity contracts also apply to
					 similar contracts on a variable basis but computation of reserves and cash
					 values and other nonforfeiture benefits shall be in accordance with actuarial
					 procedures that recognize the variable nature of the contract. Section 4070 of
					 the insurance code of 1956 does not apply to contracts for annuities on a
					 variable basis.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.627 - Approvals required

Current through Vol. 24-12, July 15, 2024
Rule 627. A contract on a variable basis shall not be
					 delivered or issued for delivery in this state and an application for such a
					 contract or a group certificate in connection with any such contract shall not
					 be delivered or issued for delivery in this state, unless it has been approved
					 by the commissioner pursuant to section 2236 of the insurance code of
					 1956.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.628 - Contracts and certificates; contents

Current through Vol. 24-12, July 15, 2024
Rule 628. A contract on a variable basis shall not be
					 delivered or issued for delivery in this state and a group certificate in
					 connection with any such contract shall not be delivered or issued for delivery
					 in this state, unless:
(a) It contains
				  a statement of the essential procedures to be followed by the insurer in
				  determining the dollar amount of variable benefits or other contractual
				  payments or values under the contract.
(b) It contains on its first page, in a
				  prominent position, a clear statement that the benefits or other contractual
				  payments of values are on a variable basis and will decrease or increase to
				  reflect investment experience.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.629 - Variable annuity; contract requirements

Current through Vol. 24-12, July 15, 2024
Rule 629.
(1) A
				  contract for an annuity on a variable basis shall not be delivered in this
				  state unless it stipulates the investment increment factors to be used in
				  computing the dollar amount of variable benefits or other variable contractual
				  payments or values thereunder. An individual contract for an annuity on a
				  variable basis shall not be delivered or issued for delivery in this state,
				  unless all of the following provisions are complied with:
(a) It contains a provision specifying the
				  options available in the event of default in a periodic stipulated payment,
				  which options may include an option to surrender the contract for a cash value
				  as determined by the contract and shall include an option to receive a paid-up
				  annuity if the contract is not surrendered for cash.
(b) It stipulates the expense and mortality
				  components used in determining the factor which is used in calculating the
				  first annuity payment. Expense may exclude some or all taxes as may be provided
				  by the contract.
(c) The annual net
				  investment increment assumption does not exceed 5%, except with the approval of
				  the commissioner.
(d) The mortality
				  factor is determined from an annuity mortality table authorized by section 835
				  of the insurance code of 1956, as amended, being S500.835 of the Michigan
				  Compiled Laws, or any modification of the table approved by the commissioner,
				  or any other table so approved.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.631 - Advertising and illustrations

Current through Vol. 24-12, July 15, 2024
Rule 631.
(1)
				  Except as exempted in writing by the commissioner, an insurer which delivers or
				  issues for delivery contracts on a variable basis shall file with the
				  commissioner at least 30 days prior to use copies of advertising, illustrations
				  and other printed materials to be used in connection with the sale of
				  individual contracts on a variable basis in this state.
(2) Advertising, illustrations, and other
				  disseminations of information concerning contracts on a variable basis are
				  subject to the provisions of sections 2005 and 2007 of the insurance code of
				  1956. An illustration of benefits under a contract on a variable basis violates
				  those provisions if it includes projections of past investment experience into
				  the future or attempted predictions of future investment experience. However,
				  those provisions do not prohibit the use of hypothetical assumed rates of
				  interest to illustrate possible levels of benefits.
(3) Advertising, illustrations, and other
				  disseminations of information concerning group variable annuity contracts on a
				  variable basis satisfy the provisions of sections 2005 and 2007 of the
				  insurance code of 1956 if they are subject to review by the securities and
				  exchange commission of the United States government or by the national
				  association of securities dealers and the review has not resulted in
				  disapproval.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.632 - Statements

Current through Vol. 24-12, July 15, 2024
Rule 632.
(1) An
				  insurer shall mail to each of its holders of an annuity contract on a variable
				  basis, at least once in each contract year after the first at his last address
				  known to the insurer, a statement reporting the investments held in the
				  separate annuity account (S), in a form acceptable to the
				  commissioner.
(2) An insurer shall
				  mail to each of its holders of an annuity contract on a variable basis under
				  which payments have not yet begun, at least once in each contract year after
				  the first at his last address known to the insurer, a statement reporting the
				  number of accumulation units credited to the contract and the dollar value of a
				  unit or a statement reporting the value of the contract holder's account, as of
				  a date not more than 4 months prior to the date of mailing.
(3) Annually an insurer issuing contracts on
				  a variable basis shall submit to the commissioner a statement of the business
				  of its separate accounts in the form prescribed by the commissioner.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.633 - Licensing of agents

Current through Vol. 24-12, July 15, 2024
Rule 633.
(1) A
				  person shall not act as an agent in the solicitations or sale of contracts on a
				  variable basis unless he is a licensed agent of a life insurer whose
				  certificate of authority specifically provides for the issuance of contracts on
				  a variable basis and unless his life insurance agent's license has been
				  extended to permit him to solicit and sell variable contracts. A licensed agent
				  of a life insurer may solicit and sell contracts on a variable basis without
				  extension of his life insurance agent's license if the contract is based on an
				  account which is excluded from the definition of investment company by section
				  3(c)11 of the investment company act of 1940.
(2) A licensed agent of a life insurer whose
				  certificate of authority specifically provides for the issuance of contracts on
				  a variable basis may apply for extension of his license to permit the
				  solicitation and sale of variable contracts by a letter request directed to the
				  commissioner through the home office of the life insurer. Letter requests may
				  be for 1 or more of the life insurer's licensed agents.
(3) The licensing procedures prescribed by R
				  500.633 to
				  R 500.636 shall not apply to the
				  solicitation or sale of life insurance contracts on a variable basis as defined
				  by
				  R
				  500.841.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.634 - Examinations for agents

Current through Vol. 24-12, July 15, 2024
Rule 634.
(1) The
				  commissioner shall schedule an examination and notify the agent of the date,
				  time and place of the examination. The examination fee may be submitted with
				  the letter request or may be paid at the time of examination.
(2) The examination has 2 parts. Part 1 deals
				  with securities in general. Part 2 deals with the history, purpose, regulation
				  and sale of variable contracts. An examinee shall achieve a grade of at least
				  70% in each part in order to pass the examination. Certain sales supervisory
				  and home office employees shall achieve a grade of at least 80% in part
				  1.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.635 - Waiver of examination; alternatives; nonresidents

Current through Vol. 24-12, July 15, 2024
Rule 635.
(1) The
				  commissioner shall waive part 1 of the examination for any agent who applies
				  for extension of his license if the letter request from the insurer is
				  accompanied by evidence that the agent has passed an acceptable alternative
				  examination, that the agent currently is registered with the securities and
				  exchange commission as a broker-dealer or that the agent currently is
				  associated with a broker-dealer and has met the qualification requirements for
				  such association. The following examinations are acceptable alternative
				  examinations:
(a) Any state securities sales
				  examination accepted by the securities and exchange commission.
(b) The national association of securities
				  dealers' examination for principals, or its examination for qualification as a
				  registered representative.
(c) The
				  various securities examinations required by the New York stock exchange, the
				  American stock exchange, the Pacific stock exchange, or any other registered
				  national securities exchange.
(d)
				  The securities and exchange commission test given pursuant to section 15(b)(8)
				  of the securities and exchange act of 1934.
(e) The examination recommended for the
				  testing of variable contract agents by the national association of insurance
				  commissioners, when adopted by the insurance department of any state or
				  territory of the United States and approved for use by such department by the
				  securities and exchange commission.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.636 - Rewriting and passing examinations; termination of agents' authority

Current through Vol. 24-12, July 15, 2024
Rule 636.
(1) An
				  agent who fails to pass part 1 of the examination may rewrite it after a
				  waiting period in accordance with securities and exchange commission
				  requirements but the waiting period shall be not less than 20 days. An agent
				  who fails to pass part 2 of the examination may rewrite it after a waiting
				  period of not less than 20 days.
(2) When an agent successfully completes the
				  examination, the commissioner shall notify the sponsoring insurer and instruct
				  the insurer to return the agent's license to be amended. Amending a license
				  consists of adding the designation including variable contracts to the license
				  and making the appropriate notations on the agent's control card in the
				  commissioner's files. There is no additional charge to the sponsoring insurer
				  for amending a license.
(3) If an
				  insurer terminates the authority of an agent to solicit and sell contracts on a
				  variable basis but maintains the agent's authority to act as a life insurance
				  agent for the company, the insurer shall notify the commissioner immediately
				  and return the license to the commissioner for deletion of the including
				  variable contracts designation.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.637 - Waivers of compliance with rules

Current through Vol. 24-12, July 15, 2024
Rule 637.
(1) If
				  the statutes or rules of the place of domicile of an insurer prevent compliance
				  with part of these rules, the insurer may advise the commissioner in writing.
				  If the insurer demonstrates that the statute or rules of the place of domicile
				  provide protection to the policyholders and the public which is substantially
				  equal to that provided by these rules, the commissioner may waive compliance
				  with these rules to the extent necessary to remove the conflict.
(2) If an insurer domiciled in this state or
				  an alien insurer entered in this state is prohibited from transacting a
				  variable contract business in another jurisdiction because a conflict exists
				  between these rules and the rules or laws or both of that jurisdiction, the
				  insurer may advise the commissioner in writing. The commissioner may waive
				  compliance with these rules to the extent necessary to remove the conflict if
				  he determines that the waiver will not substantially reduce the protection to
				  the policyholders and the public provided by these rules.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Replacement of Life Insurance Policies › VARIABLE CONTRACTS › Section R. 500.641 - Suspension or modification of filing requirements; standards

Current through Vol. 24-12, July 15, 2024
Rule 641. Before issuing a written order suspending or
					 modifying the requirement of filing as to any kind of insurance, subdivision,
					 or combination thereof, or as to classes of risks, the commissioner shall take
					 into account all of the following:
(a)
				  The magnitude of the coverages and premiums involved.
(b) Whether the policies involved are of a
				  unique or unusual character.
(c)
				  Whether the risk is such that immediate coverage is necessary.
(d) The information available to, or the
				  knowledge of, the parties negotiating the coverage as pertains to the risk
				  involved and the rates for such coverage.
(e) Whether such filing requirement is
				  necessary or desirable for the protection of the public.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.651 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Accident and sickness insurance" means
				disability insurance as defined in section 606 of the code, coverage comparable
				to that defined in section 606 of the code offered by multiple employer welfare
				arrangements, and credit accident and health insurance as defined in section 3
				of Act No. 173 of the Public Acts of 1958, as amended, being S550.603 of the
				Michigan Compiled Laws.
(b)
				"Advertisement" means all of the following:
(i) Printed and published material,
				audiovisual material, and descriptive literature used by or on behalf of an
				insurer in any of the following:
(A) Direct
				mail.
(B) Newspapers.
(C) Magazines.
(D) Radio scripts.
(E) Television scripts.
(F) Billboards.
(G) Other similar displays.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.652 - Purpose and applicability

Current through Vol. 24-12, July 15, 2024
Rule 2.
(1) These
				rules shall be construed to provide insureds and prospective purchasers with
				clear and unambiguous statements in the advertisement of accident and sickness
				insurance and to assure the clear and truthful disclosure of the benefits,
				limitations, and exclusions of policies sold as accident and sickness
				insurance.
(2) Unless otherwise
				specified, these rules apply to any accident and sickness insurance
				advertisement which the insurer knows or reasonably should know is intended for
				presentation, distribution, or dissemination in this state, either directly or
				indirectly by or on behalf of an insurer, agent, or other person as defined in
				the code and these rules.
(3) Every
				advertisement covered by these rules shall be presumed to have been caused,
				directly or indirectly, to be created, published, disseminated, circulated, or
				placed before the public by the insurer whose policy or policies are the
				subject of the advertisement. Every insurer shall establish, and at all times
				maintain, a system of control over the content, form, and method of
				dissemination of all of its accident and sickness insurance advertisements. All
				such advertisements, regardless of by whom written, created, designed, or
				presented, shall be the responsibility of the insurer or insurers whose
				policies are so advertised.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.653 - Method of disclosure of required information

Current through Vol. 24-12, July 15, 2024
Rule 3. Information required to be disclosed by these rules
				  shall be set out conspicuously and in close conjunction with the statements to
				  which the information relates or under appropriate captions of such prominence
				  that it shall not be minimized, rendered obscure, presented in an ambiguous
				  fashion, or intermingled with the context of the advertisement so as to be
				  confusing or misleading.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.654 - Form and content of advertisements

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1) The
				format and content of an advertisement of an accident or sickness insurance
				policy shall be sufficiently complete and clear to avoid deception or the
				capacity or tendency to mislead or deceive. Whether an advertisement has a
				capacity or tendency to mislead or deceive shall be determined by the
				commissioner from the overall impression that the advertisement may be
				reasonably expected to create upon a person of average education or
				intelligence within the segment of the public to which the advertisement is
				directed.
(2) An advertisement
				shall be truthful and not misleading in fact or in implication. Words or
				phrases, the meaning of which is clear only by implication or by familiarity
				with insurance terminology, shall not be used.
(3) An insurer shall clearly identify its
				accident and sickness insurance as an insurance policy. A policy trade name
				shall be followed by the words "insurance policy" or similar words which
				clearly identify the fact that an insurance policy is being offered.
(4) An insurer, agent, or other person shall
				not solicit a resident of this state for the purchase of accident and sickness
				insurance in connection with, or as the result of, the use of any advertisement
				by such person or any other person where the advertisement does either of the
				following:
(a) Contains any misleading
				representations or misrepresentations or is otherwise untrue, deceptive, or
				misleading with regard to the information imparted, the status, character, or
				representative capacity of such person, or the true purpose of the
				advertisement.
(b) Otherwise
				violates the provisions of these rules.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.655a - Specified disease policies

Current through Vol. 24-12, July 15, 2024
Rule 5a. In addition to the other provisions of these rules,
				  an advertisement for a policy that covers only 1 disease or a list of specified
				  diseases shall be in compliance with both of the following provisions:
(a) An advertisement shall not imply coverage
				beyond the terms of the policy. Synonymous terms shall not be used to refer to
				any single disease so as to imply broader coverage than is the fact.
(b) An advertisement shall not be used if the
				purpose of the advertisement appears to be to induce or create fear in
				prospective policyholders. An advertisement shall not use statistics, words,
				phrases, symbols, insignias or characteristics which are calculated to arouse
				fear, alarm, anxiety, dread, shock, fright, or panic.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.656 - Exceptions, reductions, and limitations

Current through Vol. 24-12, July 15, 2024
Rule 6.
(1) When an
				advertisement which is an invitation to contract refers to a dollar amount, a
				period of time for which a benefit is payable, the cost of the policy, a
				specific policy benefit, or the loss for which the benefit is payable, the
				advertisement shall also disclose those exceptions, reductions, and limitations
				affecting the basic provisions of the policy without which the advertisement
				would have the capacity or tendency to mislead or deceive.
(2) When a policy contains a waiting,
				elimination, probationary, or similar time period between the effective date of
				the policy and the effective date of coverage under the policy at a time period
				between the date a loss occurs and the date benefits begin to accrue for the
				loss, an advertisement which is subject to the requirements of subrule (1) of
				this rule shall disclose the existence of the period.
(3) The use of words or phrases in a context
				which understates the extent of the policy's exceptions, reductions, or
				limitations is considered misleading. An advertisement shall not use the word
				"only," "just," "merely," "minimum," or "necessary" or similar words or phrases
				to describe the applicability of any exceptions and reductions.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.657 - Preexisting conditions

Current through Vol. 24-12, July 15, 2024
Rule 7.
(1) An
				advertisement which is an invitation to contract shall disclose, in negative
				terms, the extent to which a loss is not covered if the cause of the loss is
				traceable to a condition that existed before the effective date of the policy.
				The term "preexisting condition," without an appropriate definition or
				description, shall not be used.
(2)
				When a policy does not cover losses resulting from a preexisting condition, an
				advertisement of the policy shall not state or imply that the applicant's
				physical condition or medical history will not affect the issuance of the
				policy or payment of a claim thereunder. Within this context, the advertisement
				shall not contain the phrase "no medical examination required" or phrases of
				similar import. This rule does not prohibit explaining the phrase "automatic
				issue." If an insurer requires a medical examination for a specified policy,
				the advertisement, if it is an invitation to contract, shall disclose that a
				medical examination is required.
(3) When an advertisement contains an
				application form to be completed by the applicant and returned by mail, the
				application form shall contain a question or statement appearing in upper case
				type or contrasting color which reflects the preexisting condition provisions
				of the policy immediately preceding the blank space for the applicant's
				signature. An application form shall be in compliance with either of the
				following provisions:
(a) Contain a question
				or statement substantially as follows:
Do you understand that this policy will not pay __________
				  benefits during the first __________ month(s) after __________ the issued date
				  for a disease or physical condition YES which you now have or have had in the
				  past.
(b) Contain a
				statement substantially as follows: I understand that the policy applied for
				will not pay benefits for any loss incurred during the first month(s) after the
				issue date on account of disease or physical condition which I now have or have
				had in the past.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.658 - Disclosure of renewability, cancellability, termination, and modification

Current through Vol. 24-12, July 15, 2024
Rule 8. An advertisement which is an invitation to contract
				  shall disclose the provisions relating to renewability, cancellability,
				  termination, and a modification of benefits, losses covered, or premiums
				  because of age or for other reasons in a manner which shall not minimize or
				  render the qualifying conditions obscure.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.660 - Use of statistics

Current through Vol. 24-12, July 15, 2024
Rule 10.
(1) An
				advertisement relating to the dollar amounts of claims paid, the number of
				persons insured, or similar statistical information relating to an insurer or
				policy shall not be used unless it accurately reflects all material facts
				necessary to fairly apprise potential purchasers of the significance of the
				statistics. An advertisement shall not imply that statistics are derived from
				the policy advertised unless true and, when applicable to other policies or
				plans, shall specifically so state.
(2) An advertisement shall specifically
				identify the sickness and accident insurance policy to which statistics relate
				and, where statistics are given which are applicable to a different policy, it
				shall be stated clearly that the data do not relate to the policy being
				advertised.
(3) An advertisement
				that uses statistics which describe aspects of an insurer, such as assets,
				corporate structure, financial standing, age, product lines, or relative
				position in the insurance business, shall not be used unless relevant to the
				product being advertised.
(4) An
				advertisement shall not represent or imply that a claim settlement by the
				insurer is "liberal" or "generous" or use words of similar import, or that a
				claim settlement is or will be beyond the actual terms of the contract. An
				unusual amount paid for a unique claim for the policy advertised is misleading
				and shall not be used.
(5) The
				source of statistics used in an advertisement shall be identified in the
				advertisement.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.661 - Identification of plan or number of policies

Current through Vol. 24-12, July 15, 2024
Rule 11.
(1) When a
				choice of the amount of benefits is referred to, an advertisement which is an
				invitation to contract shall disclose that the amount of benefits provided
				depends upon the plan selected and that the premium will vary with the amount
				of the benefits selected.
(2) When
				an advertisement which is an invitation to contract refers to various benefits
				which may be contained in 2 or more policies, other than group master policies,
				the advertisement shall disclose that the benefits are provided only through a
				combination of the policies.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.662 - Disparaging comparisons and statements

Current through Vol. 24-12, July 15, 2024
Rule 12. An advertisement shall not directly or indirectly
				  make unfair or incomplete comparisons of policies or benefits or comparisons of
				  noncomparable policies of other insurers, and shall not disparage competitors,
				  their policies, services, or business methods, and shall not disparage or
				  unfairly minimize competing methods of marketing business.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.663 - Jurisdictional licensing and status of insurer

Current through Vol. 24-12, July 15, 2024
Rule 13.
(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
				those limits.
(2) An advertisement
				shall not create the impression, directly or indirectly, 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 or plans of
				insurance are approved, endorsed, or accredited by a division or agency of this
				state or the federal government.
(3) An advertisement shall not imply or state
				that approval, endorsement, or accreditation of policy forms or advertising has
				been granted by any division or agency of this state or the federal government.
				"Approval" of either policy forms or advertising shall not be used by an
				insurer to imply or state that a governmental agency has endorsed or
				recommended the insurer, its policies, its advertising, or its financial
				condition.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.664 - Identity of insurer

Current through Vol. 24-12, July 15, 2024
Rule 14.
(1) The
				name of the actual insurer shall be stated conspicuously in all of its
				advertisements. The form number of the policy advertised shall be stated in an
				advertisement which is an invitation to contract. An advertisement shall not
				use any of the following without disclosing the name of the actual insurer:
(a) A trade name.
(b) An insurance group designation.
(c) Name of the parent company of the
				insurer.
(d) Name of a particular
				division of the insurer.
(e)
				Service mark.
(f) Slogan.
(g) Symbol.
(h) Any other device which would have the
				capacity and tendency to mislead or deceive as to the true identity of the
				insurer.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.665 - Group or quasi-group implications

Current through Vol. 24-12, July 15, 2024
Rule 15.
(1) An
				advertisement of a particular policy shall not state or imply that prospective
				insureds become group or quasi-group members covered under a group policy and
				as such enjoy special rates or underwriting privileges, unless that is the
				fact.
(2) This rule prohibits the
				solicitation of a particular class, such as governmental employees, by use of
				advertisements which state or imply that its occupational status entitles it to
				reduced rates on a group or other basis when, in fact, the policy being
				advertised is sold only on an individual basis at regular rates.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Accident and Sickness Insurance Advertising › Section R. 500.667 - Statements about insurer

Current through Vol. 24-12, July 15, 2024
Rule 17. An advertisement shall not contain a statement which
				  is untrue, in fact, or by implication misleading with respect to the assets,
				  corporate structure, financial standing, age, or relative position of the
				  insurer in the insurance business. An advertisement shall not contain a
				  recommendation of a commercial rating organization unless the limitations of
				  the scope and extent of the recommendation are fully
				  explained.