Sec. 3620.
(1) Family expense insurance is that form of accident and health or hospitalization, medical, surgical and sick-care insurance which is written under 1 policy issued to the head of a family who may be either spouse, and insuring such head and 1 or more dependents, and may include a non-dependent spouse. Benefits under such policy, except as applied to the head of the family, shall not include indemnities for loss of time from any cause.
(2) Any insurer authorized to write accident and health or hospitalization, medical, surgical and sick-care insurance in this state is authorized to issue family expense insurance policies.
(3) No such policy may be issued or delivered in this state unless a copy of the form thereof shall have been filed with the commissioner and approved by him.
(4) Every policy of family expense insurance shall contain the applicable provisions of sections 3406 through 3466 (required and optional provisions for individual disability insurance policies), and shall contain the following provisions in substance:
(a) A provision that the policy and the application signed by the husband or wife acting as the head of the family for the purpose of this insurance shall constitute the entire contract between the parties, and that all statements made by the head of the family shall, in the absence of fraud, be deemed representations and not warranties, and that no statement shall be used in defense of a claim under the policy unless it is contained in a written application.
(b) A provision that to the family group originally insured may be added, from time to time, on application of the head of the family, any new members of the family eligible for insurance in such family group.
(5) Such policies shall be subject to section 3474 (filing of risk classifications and rates).
History: 1956, Act 218, Eff. Jan. 1, 1957
Popular Name: Act 218
Last modified: October 10, 2016