Michigan Compiled Laws 218-1956-7 Chapter 7 Reserve Standards For Disability Insurance (500.701...500.737)

• Section 500.701 Definitions.
  As used in this chapter: (a) “Annual claim cost” means the net annual cost per unit of benefit before the addition of expenses, including...
• Section 500.702 Health Insurance Reserves; Determination Of Adequacy; Basis.
  The adequacy of an insurer's health insurance reserves shall be determined only on the combined basis of claim, premium, and contract reserves and not...
• Section 500.703 Claim Reserves And Claim Expense Reserves Required; Conditions; Testing For Adequacy And Reasonableness.
  (1) Claim reserves are required for all incurred but unpaid claims on all health insurance policies and certificates. (2) Appropriate claim expense reserves are...
• Section 500.705 Disability Income Claim Reserves; Maximum Interest Rate; Morbidity Standards Specified In Rules; Exception; Group Disability Income Claim Reserves; Duration From Date Of Disablement 2 Years Or More But Less Than 5 Years; Basis; Request For Modification Plan Approval; Elimination Period; Measurement Of Disablement Duration.
  (1) The maximum interest rate for claim reserves related to disability income is that rate specified in section 733. (2) Minimum standards with respect...
• Section 500.707 Health Insurance Benefits Other Than Disability Income; Claim Reserves Maximum Interest Rate; Basis Of Claim Reserve.
  (1) The maximum interest rate for claim reserves related to health insurance benefits other than disability income is that rate specified in section 733....
• Section 500.709 Estimation Of Claim Liabilities; Methods.
  Except as otherwise provided in this chapter, any generally accepted or reasonable actuarial method or combination of methods may be used to estimate all...
• Section 500.711 Unearned Premium Reserves; Treatment Of Premiums Due And Unpaid; Discount Of Certain Gross Premiums Paid In Advance.
  (1) Unearned premium reserves are required for all health insurance policies and certificates with respect to the period of coverage for which premiums, other...
• Section 500.713 Minimum Unearned Premium Reserve; Basis; Sum Of Unearned Premium And Contract Reserves; Limitation.
  (1) The minimum unearned premium reserve with respect to any health insurance policy or certificate is the pro rata unearned modal premium that applies...
• Section 500.715 Premium Reserves; Computation.
  The insurer may employ suitable approximations and estimates in computing premium reserves including, but not limited to, groupings, averages, and aggregate estimation. The insurer...
• Section 500.717 Contract Reserves; Required For Certain Policies And Certificates; Exception; Addition To Claim And Premium Reserves; Methods And Procedures; Date Of Incurral Defined.
  (1) Except as otherwise provided for in subsection (2), contract reserves are required for both of the following: (a) All health insurance policies and...
• Section 500.719 Morbidity Standards; Rules; Structure Of Valuation Net Premiums; Valuation Of Health Insurance Policies And Certificates For Which Tabular Morbidity Standards Not Specified; Maximum Interest Rate For Contract Reserves; Termination Rates; Adjustment Of Morbidity Standard On Aggregate Basis; Minimum Reserve; Application Of Certain Reserve Adjustments; Offset Of Negative Reserves Against Positive Reserves; Total Contract Reserve Not Less Than Zero.
  (1) Minimum standards with respect to morbidity are those set forth in rules promulgated pursuant to this chapter. Valuation net premiums used under each...
• Section 500.721 Application Of Alternative Method Or Basis To Contract Reserve; Assumptions; Methods To Determine Sound Value Of Liabilities.
  (1) If the contract reserve on all health insurance policies and certificates to which an alternative method or basis is applied is not less...
• Section 500.723 Tabular Reserves; Annual Review; Increments; Restriction Of Future Gross Premiums; Establishment Of Contract Reserves For Insufficiency In Aggregate.
  (1) A review shall be made annually of the insurer's prospective contract liabilities on health insurance policies and certificates valued by tabular reserves, to...
• Section 500.725 Reinsurance; Determination Of Increases To, Or Credit Against, Reserves.
  Increases to, or credits against, reserves carried arising because of reinsurance assumed or reinsurance ceded, shall be determined in a manner consistent with minimum...
• Section 500.729 Individual Insurance Policies; Minimum Morbidity Standards For Disability Income Benefits; Basis Of Contract Reserve Standards For Certain Hospital, Surgical, And Maternity Benefits; Basis Of Contract Reserve Standards For Certain Cancer Expense Benefits And Accidental Death Benefits.
  (1) The following minimum morbidity standards for disability income benefits for individual health insurance policies shall be used: (a) For contract reserves for policies...
• Section 500.731 Disability Benefits For Group Health Insurance Certificates; Minimum Morbidity Standards.
  The following minimum morbidity standards for disability benefits for group health insurance certificates shall be used: (a) For contract reserves for policies and certificates...
• Section 500.733 Maximum Interest Rates.
  (1) The maximum interest rate for contract reserves is the calendar year statutory valuation interest rate for life insurance specified in section 836 as...
• Section 500.735 Mortality Basis; Use Of Other Mortality Tables; Request For Approval.
  (1) The mortality basis used shall be that specified in section 834 as of the date of issuance of the health insurance policy or...
• Section 500.737 Rules.
  The commissioner may promulgate rules pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections...

Last modified: October 10, 2016