Mich. Admin. Code R. 500.852 - Variable life insurance policy; suicide exclusion; incidental insurance benefits on fixed basis; dividends; election of automatic premium loan
Rule 12. Any of the following provisions may in substance be included in a variable life insurance policy or related form delivered or issued for delivery in this state:
(a)
An exclusion for suicide committed within 2 years of the policy issue date.
However, to the extent of the increased death benefits only, the policy may
provide an exclusion for suicide within 2 years of any increase in death
benefits which result from an application of the owner subsequent to the policy
issue date.
(b) Incidental
insurance benefits may be offered on a fixed basis or variable basis.
(c) Policies issued on a participating basis
shall offer to pay dividend amounts in cash. In addition, such policies may
offer the following dividend options:
(i) The
amount of the dividend may be credited against premium payments.
(ii) The amount of the dividend may be
applied to provide amounts of additional fixed benefit life
insurance.
(iii) The amount of the
dividend may be applied to provide amounts of additional variable life
insurance.
(iv) The amount of the
dividend may be deposited in the general account at a specified minimum rate of
interest.
(v) The amount of the
dividend may be applied to provide paid-up amounts of fixed-benefit, 1-year
term insurance.
(vi) The amount of
the dividend may be deposited as a variable deposit in a separate
account.
(d) A provision
allowing the policyholder to elect, in writing, in the application for the
policy or thereafter, an automatic premium loan on a basis not less favorable
than that required of policy loans under
R 500.851, except that a restriction
that not more than 2 consecutive premiums shall be paid under this provision
may be imposed.
(e) A provision
allowing the policyholder to make partial withdrawals.
(f) Any other policy provision approved in
writing by the commissioner.
Notes
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