Mich. Admin. Code R. 550.201 - Definitions

Current through Vol. 22-05, April 1, 2022

Rule 1.

(1) As used in these rules:
(a) "Act" means Act No. 173 of the Public Acts of 1958, as amended, being S550.601 et seq. of the Michigan Compiled Laws, and known as the credit insurance act.
(b) "Credit insurance" means both credit life insurance and credit accident and health insurance.
(c) "Credit transaction" means any transaction under which payment may be made at a future date for money loaned or goods, services, or properties sold or leased.
(d) "Joint credit life coverage" means credit life insurance covering 2 individuals, where the individuals are co-obligated on the indebtedness and where the entire sum insured becomes payable upon the death of the first debtor to die while the insurance is in force.
(e) "Open-end credit insurance" means credit insurance provided in connection with an indebtedness incurred under an open-end credit account plan by use of a credit card, check, or other device as the plan may provide. Open-end credit account plan includes a revolving charge account plan.
(f) "Post-claim underwriting" means determining whether an individual meets underwriting criteria after the receipt of a claim and voiding coverage or denying the claim based upon that determination. The term does not include determinations under preexisting conditions exclusion clauses permitted in these rules. The term also does not include determinations where knowledge by the insurer of facts misrepresented on the application would have led to a refusal by the insurer to issue a certificate based upon the insurer's written underwriting criteria on the date of application.
(g) "Underwrite" means applying standards under which the insurer issues, refuses to issue, renews, refuses to renew, or limits coverage. The term includes determinations based upon eligibility criteria or evidence of insurability.
(2) Terms defined in the act have the same meanings when used in these rules.

Notes

Mich. Admin. Code R. 550.201
1987 AACS; 1995 AACS

The rules of the Insurance Bureau, Department of Commerce, entitled "Credit Insurance Rates, Forms, and Standards," being R 550.101 to R 550.121 and appearing in Issue No. 6 of the 1987 Michigan Register, are renumbered R 550.201 to R 550.221.

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