reglab/statecodes huggingface dataset:
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Life Insurance Contracts On Variable Basis › Section R. 500.863 - Information required to be delivered to policy applicant

Current through Vol. 24-12, July 15, 2024
Rule 23. The requirements of this rule shall be deemed to
				  have been satisfied by the delivery to the applicant of a prospectus included
				  in a registration statement which satisfies the requirements of the securities
				  act of 1933, 15 U.S.C. S77A et seq., and which was declared effective by the
				  securities and exchange commission to the extent that the prospectus contains
				  the information required by this rule. An insurer delivering or issuing for
				  delivery in this state any variable life insurance policies shall deliver to
				  the applicant for the policy, and obtain a written acknowledgment of receipt
				  from such applicant coincident with, or before, the execution of the
				  application, the following information:
(a) A summary explanation, in nontechnical
				terms, of the principal features of the policy, including a description of the
				manner in which the variable benefits will reflect the investment experience of
				the separate account and the factors which affect such variation. Such
				explanation shall include notices of the provisions required by
				R 500.850(a)(iv) and
				(f).
(b) A statement of the investment policy of
				the separate account, including both of the following:
(i) A description of the investment objective
				and orientation intended for the separate account and the principal types of
				investments intended to be made as required by
				R
				500.843(c)(iii).
(ii) Any restriction or limitations on the
				manner in which the operations of the separate account are intended to be
				conducted.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Life Insurance Contracts On Variable Basis › Section R. 500.864 - Policy application

Current through Vol. 24-12, July 15, 2024
Rule 24. The application for a variable life insurance policy
				  shall contain all of the following statements and questions:
(a) A prominent statement that the death
				benefit may be variable or fixed under specified conditions.
(b) A prominent statement that cash values
				may increase or decrease in accordance with the experience of the separate
				account, subject to any specified minimum guarantees.
(c) Questions designed to elicit information
				which enables the insurer to determine the suitability of variable life
				insurance for the applicant.
(d) A
				prominent statement that, in the case of a variable endowment policy, the
				amount of the endowment payable at maturity is not guaranteed, but is dependent
				upon the then cash surrender value, subject to any specified minimum
				guarantees.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Life Insurance Contracts On Variable Basis › Section R. 500.865 - Reports to policyholders

Current through Vol. 24-12, July 15, 2024
Rule 25. Any insurer delivering or issuing for delivery in
				  this state any variable life insurance policies shall mail to each variable
				  life insurance policyholder, at his or her last known address, all of the
				  following statements, notice, report, and information:
(a) Within 30 days after each anniversary of
				the policy, a statement or statements of all of the following:
(i) The cash surrender value.
(ii) Death benefit.
(iii) Any partial withdrawal.
(iv) Any policy loan.
(v) Any interest charge.
(vi) Any optional payments allowed under the
				policy pursuant to
				R 500.851 computed as of the policy
				anniversary date. Such statement may be furnished within 30 days after a
				specified date in each policy year if the information contained therein is
				computed as of a date not more than 65 days before the mailing of such notice.
				This statement shall state that, in accordance with the investment experience
				of the separate account, the cash values and the variable death benefit may
				increase or decrease and the statement shall prominently identify any value
				described therein which may be recomputed before the next statement required by
				this rule. If the policy guarantees that the variable death benefit on the next
				policy anniversary date will not be less than the variable death benefit
				specified in such statement, the statement shall be modified to so indicate.
				For flexible premium policies, the statement shall contain a reconciliation of
				the change since the previous statement in cash value and cash surrender value,
				if different, because of payments made, less deductions for expense charges;
				withdrawals; investment experience; insurance charges; and any other charges
				made against the cash value. In addition, the statement shall show the
				projected cash value and cash surrender value, if different, as of 1 year from
				the end of the period covered by the statement assuming that planned periodic
				premiums, if any, are paid as scheduled, guaranteed costs of insurance are
				deducted, and the net return is equal to the guaranteed rate or, in the absence
				of a guaranteed rate, is not more than zero. If the projected value is less
				than zero, a warning message shall be included that states that the policy may
				be in danger of terminating without value in the next 12 months unless
				additional premium is paid.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Life Insurance Contracts On Variable Basis › Section R. 500.866 - Qualification of agents for the sale of variable life insurance

Current through Vol. 24-12, July 15, 2024
Rule 26. The following apply to qualifications of agents for
				  the sale of variable life insurance:
(a) No person shall sell or offer for sale in
				this state any variable life insurance policy unless such person is an agent
				and has filed with the commissioner, in a form satisfactory to the
				commissioner, evidence that such person holds any license or authorization
				which may be required for the solicitation or sale of variable life insurance
				by any federal or state securities law.
(b) Any examination conducted by the
				commissioner for the purpose of determining the eligibility of any person for
				licensing as an agent shall, after the effective date of these rules, include
				such questions concerning the history, purpose, regulation, and sale of
				variable life insurance as the commissioner deems appropriate.
(c) Any person qualified in this state under
				this rule to sell or offer to sell variable life insurance shall immediately
				report to the commissioner all of the following:
(i) Any suspension or revocation of his
				agent's license in any other state or territory of the United States.
(ii) The imposition of any disciplinary
				sanction, including suspension, or revocation of or denial of registration,
				imposed upon him by any national securities exchange, or national securities
				association, or any federal, state, or territorial agency with jurisdiction
				over securities or variable life insurance.
(iii) Any judgment or injunction entered
				against him on the basis of conduct deemed to have involved fraud, deceit,
				misrepresentation, or violation of any insurance or securities law or
				regulation.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Actuarial Opinion and Memorandum Under Standard Valuation Law › Section R. 500.991 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Actuarial opinion" means the opinion of
				an appointed actuary regarding the adequacy of the reserves and related
				actuarial items based on an asset adequacy analysis in accordance with
				R 500.995 and with applicable
				Actuarial Standards of Practice.
(b) "Actuarial Standards Board" means the
				board established by the American Academy of Actuaries to develop and
				promulgate standards of actuarial practice.
(c) "Annual statement" means that statement
				required by section 438 of 1956 PA 218, as amended, MCL 500.438, to be filed by
				the company with the Office of Financial and Insurance Services
				annually.
(d) "Appointed actuary"
				means an individual who is appointed or retained under
				R
				500.994(3) to provide the actuarial
				opinion and supporting memorandum as required by section 830a of 1956 PA 218,
				MCL 500.830a, of the Standard Valuation Law.
(e) "Asset adequacy analysis" means an
				analysis that meets the standards and other requirements referred to in
				R
				500.994(4).
(f) "Commissioner" means the commissioner of
				the Office of Financial and Insurance Services.
(g) "Company" means a life insurance company,
				fraternal benefit society or reinsurer subject to the provisions of this
				rule.
(h) "Qualified actuary" means
				an individual who meets the requirements in
				R
				500.994(2).
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Actuarial Opinion and Memorandum Under Standard Valuation Law › Section R. 500.992 - Purpose

Current through Vol. 24-12, July 15, 2024
Rule 2. The purpose of these rules is to prescribe the
				  following:
(a) Requirements for
				statements of actuarial opinion that are to be submitted in accordance with MCL
				500.830a of the Standard Valuation Law, and for memoranda in support
				thereof.
(b) Rules applicable to
				the appointment of an appointed actuary.
(c) Guidance as to the meaning of "adequacy
				of reserves."
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Actuarial Opinion and Memorandum Under Standard Valuation Law › Section R. 500.993 - Applicability

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) These
				rules shall apply to all life insurance companies and fraternal benefit
				societies doing business in this state and to all life insurance companies and
				fraternal benefit societies that are authorized to reinsure life insurance,
				annuities, or accident and health insurance business in this state. This rule
				shall be applied in a manner that allows the appointed actuary to utilize his
				or her professional judgment in performing the asset analysis and developing
				the actuarial opinion and supporting memoranda, consistent with relevant
				actuarial standards of practice. However, the commissioner shall have the
				authority to specify specific methods of actuarial analysis and actuarial
				assumptions when, in the commissioner's judgment, these specifications are
				necessary for an acceptable opinion to be rendered relative to the adequacy of
				reserves and related items.
(2)
				These rules shall be applicable to all annual statements filed with the office
				of the commissioner as specified in
				R
				500.997. A statement of opinion on the adequacy of the
				reserves and related actuarial items based on an asset adequacy analysis under
				R 500.995, and a memorandum in
				support thereof under
				R 500.996 shall be required each
				year.
(3) These rules apply to all
				annual statements filed with the commissioner as specified in
				R
				500.997, except with respect to companies that are
				exempted by a determination made by the commissioner. A company that intends to
				file for an exemption from asset adequacy analysis shall submit a letter of
				intent to the commissioner not later than December 1 of the calendar year for
				which the exemption is to be claimed. The commissioner may deny the exemption
				before December 31 of the same year if an exemption is deemed
				inappropriate.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Actuarial Opinion and Memorandum Under Standard Valuation Law › Section R. 500.994 - General requirements

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1) The
				following apply to the Statement of Actuarial Opinion:
(a) There is to be included on or attached to
				Page 1 of the annual statement for each year beginning with the year in which
				this rule becomes effective the statement of an appointed actuary, entitled
				"Statement of Actuarial Opinion," setting forth an opinion relating to reserves
				and related actuarial items held in support of policies and contracts under
				R 500.995.
(b) Upon written request by the company, the
				commissioner may grant an extension of the date for submission of the statement
				of actuarial opinion.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Actuarial Opinion and Memorandum Under Standard Valuation Law › Section R. 500.995 - Statement of actuarial opinion based on an asset adequacy analysis

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) The
				statement of actuarial opinion shall consist of the following:
(a) A paragraph identifying the appointed
				actuary and his or her qualifications under R 500.995(2)(a).
(b) A scope paragraph identifying the
				subjects on which an opinion is to be expressed and describing the scope of the
				appointed actuary's work, including a tabulation delineating the reserves and
				related actuarial items that have been analyzed for asset adequacy and the
				method of analysis of R 500.995(2)(b), and identifying the reserves and related
				actuarial items covered by the opinion that have not been so
				analyzed.
(c) A reliance paragraph
				describing those areas, if any, where the appointed actuary has deferred to
				other experts in developing data, procedures or assumptions, such as
				anticipated cash flows from currently owned assets, including variation in cash
				flows according to economic scenarios of R 500.995(2)(c), supported by a
				statement of each such expert in the form prescribed by R 500.995(5).
(d) An opinion paragraph expressing the
				appointed actuary's opinion with respect to the adequacy of the supporting
				assets to mature the liabilities of R 500.995(2)(f).
(e) One or more additional paragraphs shall
				be needed in individual company cases as follows:
(i) If the appointed actuary considers it
				necessary to state a qualification of his or her opinion.
(ii) If the appointed actuary must disclose
				an inconsistency in the method of analysis or basis of asset allocation used at
				the prior opinion date with that used for this opinion.
(iii) If the appointed actuary must disclose
				whether additional reserves as of the prior opinion date are released as of
				this opinion date, and the extent of the release.
(iv) If the appointed actuary chooses to add
				a paragraph briefly describing the assumptions that form the basis for the
				actuarial opinion.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Rescinded - Standards For Rate Filings For Physicians And Surgeons Professional Liability Insurance

Current through Vol. 24-12, July 15, 2024
DEPARTMENT OF INSURANCE AND FINANCIAL
				SERVICES
INSURANCE BUREAU
STANDARDS FOR RATE FILINGS FOR PHYSICIANS AND
				SURGEONS
PROFESSIONAL
LIABILITY INSURANCE
By Authority conferred on the commissioner of insurance by
				  sections 210 and 2484 of Act No. 218 of the Public Acts of 1956, being
				  SS500.210 and 500.2484 of the Michigan Compiled
				  Laws
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Declaratory Rulings › Section R. 500.1041 - Submission of request

Current through Vol. 24-12, July 15, 2024
Rule 1. A request for a declaratory ruling shall include both
				  of the following:
(a) A statement of
				facts, which shall state all facts known to the applicant which are or may be
				relevant to a determination of the applicability of a rule, statute, or order
				and shall certify to the existence of the actual state of facts set forth and
				to the submission of all relevant facts.
(b) A statement of all statutes and rules
				known to the applicant which are relevant to a determination of the request and
				which the applicant seeks to have considered by. the commissioner in making the
				ruling. The applicant shall certify that he or she has identified all statutes
				and rules which the applicant seeks to have considered by the commissioner in
				making the ruling.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Declaratory Rulings › Section R. 500.1043 - Disposition

Current through Vol. 24-12, July 15, 2024
Rule 3.
(1) If the
				commissioner grants a request for a declaratory ruling, the commissioner shall
				issue the declaratory ruling within 90 days after receipt of the request,
				unless the commissioner advises the applicant, in writing, that the complexity
				of the issue, the need to secure comments from interested persons, or the need
				to seek the advice of the attorney general requires a longer period of
				time.
(2) A declaratory ruling
				shall state that it is limited to those facts which were presented and to the
				statute or rule identified by the applicant or other relevant statute or rule
				identified by the commissioner.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Uniform Trade Practices - Independent Hearing Officer › Section R. 500.1051 - Qualifications

Current through Vol. 24-12, July 15, 2024
Rule 1. To qualify as an independent hearing officer for
				  purposes of section 2030 of Act No. 218 of the Public Acts of 1956, as amended,
				  being S500.2030 of the Michigan
Compiled Laws, a candidate shall meet all of the following
				  criteria:
(a) The candidate shall be
				an attorney who is licensed in this state to practice law.
(b) The candidate shall not be a current
				employee of this state.
(c) The
				candidate shall be able to hear and decide contested cases which involve
				alleged violations of 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, with fairness and impartiality.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Uniform Trade Practices - Independent Hearing Officer › Section R. 500.1053 - Advertisement of position; content; review of applications; notice to candidate of qualification or disqualification

Current through Vol. 24-12, July 15, 2024
Rule 3. The commissioner shall advertise the position of
				  independent hearing officer in the state bar journal or comparable publication.
				  The advertisements shall indicate the qualifications for the job and that
				  application forms shall be requested from the American arbitration association.
				  The association shall review the applications to determine if candidates are
				  qualified and periodically shall submit a list of all qualified candidates,
				  together with their applications, to the commissioner. The American arbitration
				  association is responsible for informing each candidate of whether or not he or
				  she is qualified. If a candidate is determined to be unqualified, the candidate
				  shall be notified of the reason for the disqualification.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Uniform Trade Practices - Independent Hearing Officer › Section R. 500.1055 - Independent hearing officer list; compilation; public inspection

Current through Vol. 24-12, July 15, 2024
Rule 5. The commissioner shall compile the lists of names
				  submitted by the American arbitration association into an official, independent
				  hearing officer list which shall be available for public
				  inspection.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Uniform Trade Practices - Independent Hearing Officer › Section R. 500.1057 - Request for designation of independent hearing officer

Current through Vol. 24-12, July 15, 2024
Rule 7. A person who is the subject of proceedings brought
				  pursuant to the Michigan uniform trade practices act, sections 2001 to 2050 of
				  Act No. 218 of the Public Acts of 1956, as amended, being SS500.2001 to
				  500.2050 of the Michigan Compiled Laws, hereinafter called respondent, shall
				  have 20 days from the date the notice of hearing in a contested case is
				  received to request that the commissioner designate an independent hearing
				  officer. The right to such a designation shall be exercised in writing and
				  shall be received by the commissioner on or before the twentieth day after the
				  date that the notice of hearing is received. Failure to request the designation
				  of an independent hearing officer within such time shall operate as a waiver of
				  the right to an independent hearing officer designated under these rules. The
				  respondent shall be informed in the notice of hearing of the right to an
				  independent hearing officer and of the time by which the request shall be
				  made.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Uniform Trade Practices - Independent Hearing Officer › Section R. 500.1059 - Selection of independent hearing officer; procedure

Current through Vol. 24-12, July 15, 2024
Rule 9. Upon receiving a timely request from a respondent for
				  the designation of a independent hearing officer, the commissioner shall select
				  the name of a qualified candidate from the compiled list. To encourage
				  participation by all qualified persons, the commissioner shall avoid undue
				  reliance on any one person. The commissioner shall make an initial screening
				  for bias and shall require the candidate to complete a current personal
				  disclosure statement. In addition to other relevant information, the statement
				  shall disclose any personal acquaintance with any of the parties to the
				  contested case or their counsel and the nature of such acquaintance. If the
				  statement reveals facts that establish or create the appearance of partiality,
				  the commissioner shall select other names from the compiled list until a
				  qualified, impartial candidate is found and shall designate, by order, that
				  candidate as the hearing officer for the contested case. The order shall be
				  promptly served upon the parties to the case and shall provide notice to the
				  respondent of the respondent's right to a peremptory dismissal of the first
				  hearing officer selected, if such right is exercised within 20 days after
				  notification. If the respondent peremptorily dismisses the first designated
				  hearing officer, the commissioner shall select another qualified, impartial
				  candidate who shall not be subject to peremptory dismissal from the compiled
				  list and shall designate, by order, that candidate as the hearing officer. The
				  order shall be promptly served upon the parties to the case.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Credit for Reinsurance › Section R. 500.1125 - Conditions applicable to reinsurance agreement in conjunction with letter of credit under section 1105 of the code, MCL 500.1105

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) A
				reinsurance agreement in conjunction with which a letter of credit is obtained
				under section 1105 of the code, MCL 500.1105, may contain any of the following
				provisions:
(a) A requirement that the
				assuming insurer provide letters of credit to the ceding insurer and specify
				what they are to cover.
(b) A
				stipulation that the assuming insurer and ceding insurer agree that the letter
				of credit provided by the assuming insurer pursuant to the provisions of the
				reinsurance agreement may be drawn upon at any time, notwithstanding any other
				provisions in the agreement, and must be utilized by the ceding insurer or its
				successors in interest only for 1 or more of the following reasons:
(i) To pay or reimburse the ceding insurer
				for the assuming insurer's share under the specific reinsurance agreement, of
				premiums returned, but not yet recovered from the assuming insurers, to the
				owners of policies reinsured under the reinsurance agreement on account of
				cancellations of the policies.
(ii)
				To pay or reimburse the ceding insurer for the assuming insurer's share, under
				the specific reinsurance agreement, of surrenders and benefits or losses paid
				by the ceding insurer, but not yet recovered from the assuming insurers, under
				the terms and provisions of the policies reinsured under the reinsurance
				agreement.
(iii) To pay or
				reimburse the ceding insurer in an amount necessary to secure the credit or
				reduction from liability for reinsurance taken by the ceding insurer.
(iv) Where the letter of credit will expire
				without renewal or be reduced or replaced by a letter of credit for a reduced
				amount and where the assuming insurer's entire obligations under the
				reinsurance agreement remain unliquidated and undischarged 10 days before the
				termination date, to withdraw amounts equal to the assuming insurer's share of
				the liabilities, to the extent that the liabilities have not yet been funded by
				the assuming insurer and exceed the amount of any reduced or replacement letter
				of credit, and deposit those amounts in a separate account in the name of the
				ceding insurer in a qualified United States financial institution apart from
				its general assets, in trust for those uses and purposes specified in
				paragraphs (i) to (iii) of this subdivision as may remain after withdrawal and
				for any period after the termination date.
(c) A requirement that all of the provisions
				of this subrule must be applied without diminution because of insolvency on the
				part of the ceding insurer or assuming insurer.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Credit for Reinsurance › Section R. 500.1126 - Other security

Current through Vol. 24-12, July 15, 2024
Rule 6.
A ceding insurer may take credit for unencumbered fun ds
				  withheld by the ceding insurer in the United States subject to withdrawal
				  solely by th e ceding insurer and under its exclusive control.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Credit for Reinsurance › Section R. 500.1127 - Reinsurance contract

Current through Vol. 24-12, July 15, 2024
Rule 7. Credit must not be granted, nor an asset or reduction
				  from liability allowed, to a ceding insurer for reinsurance effected with
				  assuming insurers meeting the requirements of section 1103 of the code, MCL
				  500.1103, not including section 1103(5), or section 1105 of the code, MCL
				  500.1105, and applicable rules, or otherwise in compliance with section 1103 of
				  the code, MCL 500.1103, after the effective date of these rules, unless the
				  reinsurance agreement includes all of the following:
(a) A proper insolvency clause
,
which stipulates that reinsurance is payable directly to the liquidator or
				successor without diminution regardless of the status of the ceding
				company.
(b) A provision pursuant
				to section 1103 of the code, MCL 500.1103, whereby the assuming insurer, if an
				unauthorized assuming insurer, has submitted to the jurisdiction of an
				alternative dispute resolution panel or court of competent jurisdiction within
				the United States, has agreed to comply with all requirements necessary to give
				the court or panel jurisdiction, has designated an agent upon whom service of
				process may be served, and has agreed to abide by the final decision of the
				court or panel.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Credit for Reinsurance › Section R. 500.1128 - Contracts affected

Current through Vol. 24-12, July 15, 2024
Rule 8. All new and renewal reinsurance transactions entered
				  into on or after January 1, 2019 must conform to the requirements of the code
				  and these rules if credit is to be given to the ceding insurer for the
				  reinsurance.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Credit for Reinsurance › Section R. 500.1130 - Credit for reinsurance; reinsurer licensed in this state

Current through Vol. 24-12, July 15, 2024
Rule 10. Pursuant to section 1103(1) of the code, MCL
				  500.1103, the director shall allow credit for reinsurance ceded by a domestic
				  insurer to an assuming insurer that was licensed in this state as of any date
				  on which statutory financial statement credit for reinsurance is
				  claimed.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Credit for Reinsurance › Section R. 500.1131 - Credit for reinsurance; certified reinsurers

Current through Vol. 24-12, July 15, 2024
Rule 11.
(1)
				Pursuant to section 1103(6) of the code, MCL 500.1103, the director shall allow
				credit for reinsurance ceded by a domestic insurer to an assuming insurer that
				has been certified as a reinsurer in this state at all times for which
				statutory financial statement credit for reinsurance is claimed under this
				rule. The credit allowed must be based upon the security held by or on behalf
				of the ceding insurer in accordance with a rating assigned to the certified
				reinsurer by the director. The security must be in a form consistent with
				sections 1103(6) and 1105 of the code, MCL 500.1103 and MCL 500.1105, and the
				requirements, as applicable, under
				R 500.1123,
				R
				500.1124,
				R 500.1125,
				R
				500.1126, and
				R
				500.1133. The amount of security required in order for
				full credit to be allowed must correspond with the following requirements:
Ratings
Security Required
Secure-1
0%
Secure-2
10%
Secure-3
20%
Secure-4
50%
Secure-5
75%
Vulnerable-6
100%
(2)
				Affiliated reinsurance transactions must receive the same opportunity for
				reduced security requirements as all other reinsurance transactions.
(3) The director shall require the certified
				reinsurer to post 100% security, for the benefit of the ceding insurer or its
				estate, upon the entry of an order of rehabilitation, liquidation, or
				conservation against the ceding insurer.
(4) In order to facilitate the prompt payment
				of claims, a certified reinsurer must not be required to post security for
				catastrophe recoverables for a period of one year from the date of the first
				instance of a liability reserve entry by the ceding company as a result of a
				loss from a catastrophic occurrence as recognized by the director. The one-year
				deferral period is contingent upon the certified reinsurer continuing to pay
				claims in a timely manner. Reinsurance recoverables for only the following
				lines of business as reported on the NAIC annual financial statement related
				specifically to the catastrophic occurrence will be included in the deferral:
(a) Line 1: Fire.
(b) Line 2: Allied Lines.
(c) Line 3: Farmowners multiple
				peril.
(d) Line 4: Homeowners
				multiple peril.
(e) Line 5:
				Commercial multiple peril.
(f) Line
				9: Inland Marine.
(g) Line 12:
				Earthquake.
(h) Line 21: Auto
				physical damage.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Credit for Reinsurance › Section R. 500.1132 - Requirements for assets deposited in trusts established under section 1103 of the code, MCL 500.1103; specific security provided under section 1105 of the code, MCL 500.1105

Current through Vol. 24-12, July 15, 2024
Rule 12.
(1) Assets
				deposited in trusts established pursuant to section 1103 of the code, MCL
				500.1103, and this rule must be valued according to their current fair market
				value and consist only of 1 or more of the following:
(a) Cash in United States dollars.
(b) Certificates of deposit issued by a
				qualified United States financial institution.
(c) Clean, irrevocable, unconditional, and
				"evergreen" letters of credit issued or confirmed by a qualified United States
				financial institution.
(d)
				Investments of the type specified in this rule if the investments meet all of
				the following criteria:
(i) Investments in or
				issued by an entity controlling, controlled by or under common control with
				either the grantor or beneficiary of the trust does not exceed 5% of total
				investments.
(ii) No more than 20%
				of the total of the investments in the trust are foreign investments authorized
				under subrule (2)(a)(v), (c), (d)(ii), or (e) of this rule, and no more than
				10% of the total of the investments in the trust are securities denominated in
				foreign currencies. For purposes of applying the preceding sentence, a
				depository receipt denominated in United States dollars and representing rights
				conferred by a foreign security must be classified as a foreign investment
				denominated in a foreign currency.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Credit for Reinsurance › Section R. 500.1133 - Trust agreements under section 1105 of the code, MCL 500.1105

Current through Vol. 24-12, July 15, 2024
Rule 13.
(1)
				Reinsurance trusts established under section 1105 of the code, MCL 500.1105,
				must comply with the requirements of
				R 500.1123 and this rule.
(2) The trust agreement must be entered into
				between the beneficiary, the grantor, and a trustee. The trustee must be a
				qualified United States financial institution.
(3) The trust agreement must create a trust
				account into which assets must be deposited.
(4) All assets in the trust account must be
				held by the trustee at the trustee's office in the United States.
(5) The trust agreement must provide for all
				of the following:
(a) The beneficiary has the
				right to withdraw assets from the trust account at any time, without notice to
				the grantor, subject only to written notice from the beneficiary to the
				trustee.
(b) No other statement or
				document is required to be presented to withdraw assets, except that the
				beneficiary may be required to acknowledge receipt of withdrawn
				assets.
(c) The trust agreement
				must not be subject to any conditions or qualifications outside of the trust
				agreement.
(d) The trust agreement
				must not contain references to any other agreements or documents, except as
				provided for under subrules (12) and (13) of this rule.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › Casualty Insurance Rates › Section R. 500.1201 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1. As used in these rules:
(a) "Classification" means a grouping of
				individuals or risk 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. 2l8 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
				500.1207(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 › Casualty Insurance Rates › Section R. 500.1203 - 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 › Casualty Insurance Rates › Section R. 500.1204 - Reporting guidelines

Current through Vol. 24-12, July 15, 2024
Rule 4. Subject to section 2472 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 › Casualty Insurance Rates › Section R. 500.1205 - Excessive rates

Current through Vol. 24-12, July 15, 2024
Rule 5.
(1) For the
				purposes of section 2403(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 › Casualty Insurance Rates › Section R. 500.1206 - Inadequate rates

Current through Vol. 24-12, July 15, 2024
Rule 6. For purposes of section 2403(1)(d) of the code, both
				  of the following provisions shall 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 › Casualty Insurance Rates › Section R. 500.1208 - 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 › Casualty Insurance Rates › Section R. 500.1209 - 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 › Casualty Insurance Rates › Section R. 500.1210 - 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 › 1980 CSO And 1980 Cet Unisex Mortality Tables › Section R. 500.1221 - Definitions

Current through Vol. 24-12, July 15, 2024
Rule 1.
(1) As used
				in these rules:
(a) "1980 CET table" 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 extended term
				insurance table.
(b) "1980 CET
				table (F)" means that mortality table consisting of the rates of mortality for
				female lives from the 1980 CET table.
(c) "1980 CET table (M)" means that mortality
				table consisting of the rates of mortality for male lives from the 1980 CET
				table.
(d) "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.
(e) "1980 CSO table (F), with or without
				10-year select mortality factors" means that mortality table consisting of the
				rates of mortality for female lives from the 1980 CSO table, with or without
				10-year select mortality factors.
(f) "1980 CSO table (M), with or without
				10-year select mortality factors" means that mortality table consisting of the
				rates of mortality for male lives from the 1980 CSO table, with or without
				10-year select mortality factors.
(g) "NAIC" means national association of
				insurance commissioners.
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › 1980 CSO And 1980 Cet Unisex Mortality Tables › Section R. 500.1222 - Select factors for use with blended tables

Current through Vol. 24-12, July 15, 2024
Rule 2. Gender-blended tables with 10-year select mortality
				  factors, as defined in
				  R
				  500.1221(2), may be derived by
				  applying select factors to gender-blended tables without select factors where
				  the select factors are derived by using the following formula:
zFT/t = (Z)Fm/t + .6(1-Z)Ff/t Z + .6(1-Z)
where
zFT/t is the gender-blended select factor for year t Fm/t is
				  the male select factor for year t Ff/t is the female select factor for year t Z
				  is the ratio of mail lives to the total lives at the pivotal
				  age
Michigan Administrative Code › Department - Insurance and Financial Services › Insurance › 1980 CSO And 1980 Cet Unisex Mortality Tables › Section R. 500.1223 - Adoption by reference

Current through Vol. 24-12, July 15, 2024
Rule 3. The 1980 CSO table, with or without 10-year select
				  mortality factors, and the 1980 CET table 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 › 1980 CSO And 1980 Cet Unisex Mortality Tables › Section R. 500.1224 - Substitutions for the 1980 CSO table, with or without 10-year select mortality factors, and the 1980 CET table

Current through Vol. 24-12, July 15, 2024
Rule 4.
(1) For any
				policy of life insurance delivered or issued for delivery after August 1, 1983,
				both of the following provisions apply:
(a) A
				mortality table which is an acceptable blend of the 1980 CSO table (M) and the
				1980 CSO table (F), with or without 10-year select mortality factors, may be
				substituted for the 1980 CSO table, with or without 10-year select mortality
				factors for use in determining minimum cash surrender values and amounts of
				paid-up nonforfeiture benefits.
(b)
				A mortality table which is of the same blend as used in subdivision (a) of this
				subrule, but which is applied to form a blend of the 1980 CET table (M) and the
				1980 CET table (F), shall be substituted for the 1980 CET table for use in
				determining minimum cash surrender values and amounts of paid-up nonforfeiture
				benefits for those policies of insurance in which the substitution in
				subdivision (a) of this subrule is made.