Mich. Admin. Code R. 500.802 - Definitions
Current through Vol. 22-05, April 1, 2022
The following state regulations pages link to this page.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
Rule 2. (1) "Act" means Act No. 218 of the Public Acts of 1956, as amended, being SS500.100 to 500.8302 of the Michigan Compiled Laws.
(2) "Anticipated loss ratio" means the ratio at the time of policy filing, or at a time of subsequent rate revisions, of the present value of all expected future benefits, excluding dividends, to the present value of all future premiums, less dividends, based on a credible premium volume over a reasonable period of time with proper weight given to trends and other relevant factors. Statistical data relating to expected future benefits shall be obtained from policies of insurance sold or to be sold in this state when available.
(3) "Collectively renewable insurance" means all insurance which is made available on an individual basis under mass enrollment procedures to groups of persons under a plan sponsored by an employer, an association or a union or affiliated associations or unions or a group of individuals supplying materials to a central point of collection or handling a common product or commodity, under which the insurer has agreed that renewal will not be refused, subject to any specified age limit, while the insured remains a member of the group specified in the agreement unless the insurer simultaneously refuses renewal to all other policies in the same group, or all policies bearing the same form number.
(4) "Guaranteed renewable insurance" means all individual insurance which grants an insured the right to continue the policy in force by the timely payment of premiums until at least age 50, or in the case of a policy issued after age 44, for at least 5 years from the date of issue of the policy, during which period the insurer has no right to make unilaterally
any change in any provision of the policy while the policy is in force, except that the insurer may make changes in premium rates by classes.
(5) "Individual accident insurance" means all insurance which covers such losses as are due to accident only.
(6) "Noncancellable insurance" or "noncancellable and guaranteed renewable insurance" means all insurance which gives the insured the right to continue the insurance in force by the timely payment of premiums set forth in the policy until at least age 50, or in the case of a policy issued after age 44, for at least 5 years from its date of issue, during which period the insurer has no right to make unilaterally any change in any provision of the policy while it is in force.
(7) "Nonrenewable for stated reasons only insurance" means all individual insurance which limits the insurer's right of nonrenewal to stated reasons other than deterioration of health.
(8) "Optionally renewable insurance: means all individual insurance which allows the insurer unhampered right of nonrenewal.
(9) "Rated by age insurance" means all individual insurance where the issue age is 65 years or more.
History: 1979 AC.