Mich. Admin. Code R. 500.805 - Withdrawal and withholding of approval
Current through Vol. 22-05, April 1, 2022
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Rule 5. (1) Approval is withdrawn on September 30, 1974, from policies of individual insurance which bear an approval date prior to the effective date of these rules, where the anticipated loss ratio percentage of such insurance policies does not satisfy requirements stated in R 500.804 or where the anticipated loss ratio percentage of such insurance policies satisfies the requirement stated in R 500.804 but the loss ratio experience indicates to the insurance bureau that the minimum anticipated loss ratio required by R 500.804 will not be achieved.
(2) Approval will not be granted for new policies of individual insurance which are submitted to the insurance bureau for approval after the effective date of these rules where the anticipated loss ratio percentage of the policies is not at least equal to the minimum loss ratio percentage stated in R 500.804.
(3) Approval shall be withdrawn from such policies of insurance which are submitted to the insurance bureau for approval after the effective date of these rules where experience data show the insurance does not appear capable of developing the anticipated loss ratio projected in the actuarial certification filed.
(4) Approval shall not be withdrawn or withheld where it has been demonstrated to the satisfaction of the insurance bureau that the benefits of the insurance are reasonable in relation to the premiums charged even though the anticipated loss ratio for the insurance does not equal the minimum loss ratio percentage stated in R 500.804. The insurance bureau's decision to withdraw or withhold approval may be contested pursuant to the administrative procedures act, Act No. 306 of the Public Acts of 1969, as amended, being SS24.201 to 24.328 of the Michigan Compiled Laws.
History: 1979 AC.