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1 chapters · 1,672 sections in this title.
Mich. Comp. Laws § 500.701 Definitions.
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Sec. 701. As used in this chapter: (a) "Annual claim cost" means the net annual cost per unit of benefit before the addition of expenses, including claim settlement expenses, and a margin for profit or contingencies. (b) "Accrued claims" means that portion of claims payable under…
Mich. Comp. Laws § 500.7010 Application for certificate of authority; form; submission of application and other documents to commissioner; examination of application and documents; investigation; examination under oath of certain persons.
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Sec. 7010. (1) A person wishing to establish an employee welfare benefit plan which is a multiple employer welfare arrangement shall apply for a certificate of authority on a form prescribed by the commissioner. The application shall be completed and submitted to the commissioner…
Mich. Comp. Laws § 500.7011 Conditions to issuance of certificate of authority.
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Sec. 7011. The commissioner shall not issue a certificate of authority to a MEWA unless all of the following conditions have been met: (a) The commissioner is satisfied that: (i) The employers in the MEWA are members of an association or group of 2 or more businesses or entities …
Mich. Comp. Laws § 500.7012 Fees; payment and collection; service of process; designation and purpose of fees.
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Sec. 7012. (1) The commissioner shall collect, and the persons affected shall pay to the commissioner, the following fees: (a) Filing fee to accompany application for certificate of authority $ 200.00. (b) Certificate of authority $ 25.00. (c) Filing fee for annual statement each…
Mich. Comp. Laws § 500.7014 Issuance of certificate of authority; refusal to grant certificate; notice of refusal; request for and conduct of hearing.
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Sec. 7014. After examination and investigation, the commissioner shall issue a certificate of authority to the MEWA if the commissioner is satisfied that the MEWA is in a stable and unimpaired financial condition and that the MEWA is qualified to maintain an employee welfare bene…
Mich. Comp. Laws § 500.7018 Temporary certificate; organization of proposed MEWA; opening books to commissioner; condition to issuance of final certificate.
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Sec. 7018. (1) The MEWA, upon receipt of its initial certificate of authority, which shall be a temporary certificate, shall proceed to the completion of organization of the proposed MEWA. (2) A MEWA shall open its books to the commissioner, and a final certificate of authority s…
Mich. Comp. Laws § 500.702 Health insurance reserves; determination of adequacy; basis.
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Sec. 702. 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 on any 1 or 2 of these categories alone.
Mich. Comp. Laws § 500.7020 Issuance of policies by MEWA; premium or premium deposit; contingent premium; restoration of cash reserves.
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Sec. 7020. (1) The policies issued by the MEWA shall provide for a premium or premium deposit payable in cash and, except as herein provided, for a contingent premium at least equal to 1 month's premium or premium deposit, which may be prefunded, and in no event shall a member be…
Mich. Comp. Laws § 500.7022 Name of MEWA; proof of existence of MEWA.
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Sec. 7022. No MEWA authorized under this chapter shall take any name which is the same as or closely resembles the name of any other MEWA doing business in this state. A MEWA shall transact its business under its own name, and shall not adopt any assumed name: excepting that a ME…
Mich. Comp. Laws § 500.7024 Powers of MEWA.
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Sec. 7024. Every MEWA, unless otherwise provided, or inconsistent with this chapter, shall have power: (a) To have succession, by its name, for the term stated in its trust agreement, which shall be in perpetuity unless otherwise specified. (b) To sue and be sued, complain and de…
Mich. Comp. Laws § 500.7026 Articles, bylaws, and trust agreement of MEWA and amendments thereto; filing; approval; form for trust agreement; notice of meeting; voting rights; powers to be exercised by board of trustees; restrictions on trustees.
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Sec. 7026. (1) The articles, bylaws, and trust agreement of the MEWA and all amendments thereto shall be filed with and approved by the commissioner before becoming operative. The trust agreement shall be filed on a form prescribed by the commissioner. (2) Each member employer of…
Mich. Comp. Laws § 500.7028 Duties of trustees; limitation on liability of trustee.
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Sec. 7028. The trustees of a MEWA shall give the attention and exercise the vigilance, diligence, care, and skill that prudent persons use in like or similar circumstances. Trustees shall be responsible for all operations of the MEWA and shall take all necessary precautions to sa…
Mich. Comp. Laws § 500.703 Claim reserves and claim expense reserves required; conditions; testing for adequacy and reasonableness.
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Sec. 703. (1) Claim reserves are required for all incurred but unpaid claims on all health insurance policies and certificates. (2) Appropriate claim expense reserves are required with respect to the estimated expense of settlement of all incurred but unpaid claims on health insu…
Mich. Comp. Laws § 500.7030 Officers and agents; selection and appointment; authority and duties; removal; bond.
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Sec. 7030. The board of trustees shall select such officers as designated in the articles or bylaws and may appoint agents as they may deem necessary for the transaction of the business of the MEWA. All officers and agents shall respectively have such authority and perform such d…
Mich. Comp. Laws § 500.7032 Compensation of trustee, officer, or employee.
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Sec. 7032. (1) A MEWA shall not pay any salary, compensation, or emolument to any officer or trustee of the MEWA, unless the payment is first authorized by a majority vote of the board of trustees of the MEWA. (2) A trustee, officer, or employee of a MEWA shall not be compensated…
Mich. Comp. Laws § 500.7034 Trustee or officer; prohibited conduct; violation as felony; penalty.
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Sec. 7034. (1) A trustee or officer of a MEWA shall not knowingly and intentionally, directly or indirectly, receive any money or valuable thing for negotiating, procuring, recommending, or aiding in any purchase by or sale to the MEWA of any property or any loan from the MEWA, o…
Mich. Comp. Laws § 500.7040 Financial statements and reports required to be filed; commingling of cash reserves prohibited.
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Sec. 7040. (1) Each MEWA transacting business in this state shall file all of the following with the director: (a) Within 180 days after the end of each fiscal year, financial statements audited by a certified public accountant. An actuarial opinion regarding reserves for known c…
Mich. Comp. Laws § 500.7044 Notice to individual covered by plan.
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Sec. 7044. A MEWA, in connection with an employee welfare benefit plan, shall provide the following written notice to each individual covered by the plan: (a) The fact that individuals covered by the plan are only partially insured. (b) The fact that in the event the plan or the …
Mich. Comp. Laws § 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.
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Sec. 705. (1) The maximum interest rate for claim reserves related to disability income is that rate specified in section 733. (2) Minimum standards with respect to morbidity are those specified in rules promulgated pursuant to this chapter except that, at the option of the insur…
Mich. Comp. Laws § 500.7050 Examination of affairs of MEWA; access to books, records, and documents; examination of trustees, officers, agents, and employees; payment and disposition of assessment.
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Sec. 7050. The commissioner, or any person appointed by the commissioner, shall have the power to examine the affairs of any MEWA, and for such purposes shall have free access to all the books, records, and documents that relate to the business of the plan, and may examine under …
Mich. Comp. Laws § 500.7060 Additional provisions to which MEWA subject.
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Sec. 7060. A MEWA transacting business in this state is also subject to the following additional sections and chapters of this act, as applicable, in the same manner as an insurer authorized to transact insurance in this state: (a) Section 240(1)(c), (d), and (h). (b) Chapter 12.…
Mich. Comp. Laws § 500.707 Health insurance benefits other than disability income; claim reserves maximum interest rate; basis of claim reserve.
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Sec. 707. (1) The maximum interest rate for claim reserves related to health insurance benefits other than disability income is that rate specified in section 733. (2) The claim reserve shall be based upon the insurer's experience if such experience is considered credible or upon…
Mich. Comp. Laws § 500.7070 Certificate of authority; grounds for suspension, revocation, or limitation.
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Sec. 7070. The commissioner may suspend, revoke, or limit the certificate of authority of a MEWA if the commissioner determines that any of the following conditions exists: (a) The MEWA has failed to maintain a policy for excess insurance as required by section 7011. (b) The MEWA…
Mich. Comp. Laws § 500.7074 Written findings of violation; issuance and service of findings and cease and desist order; additional orders.
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Sec. 7074. If, after a hearing, the commissioner determines that a MEWA is violating or has violated a provision of this chapter, the commissioner shall reduce his or her findings and decision to writing, and shall issue and cause to be served upon the MEWA a copy of the findings…
Mich. Comp. Laws § 500.7076 Violation of cease and desist order; notice; hearing; civil fine; suspension or revocation of certificate of authority.
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Sec. 7076. If a MEWA violates a cease and desist order under this chapter and has been given notice and an opportunity for a hearing, the commissioner may order a civil fine of not more than $10,000.00 for each violation, or a suspension or revocation of the MEWA's certificate of…
Mich. Comp. Laws § 500.7078 Conduct of proceedings for payment of fines or for suspension, revocation, or limitation of certificate of authority; appeal of disputed claim; hearing.
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Sec. 7078. (1) Proceedings for the payment of fines or for suspension, revocation, or limitation of a certificate of authority shall be conducted under the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michig…
Mich. Comp. Laws § 500.7080 Multiple employer welfare arrangement security fund; creation; administration; use; appointment, qualifications, terms, and compensation of board of trustees; powers of board of trustees; payment of and accounting for expenses.
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Sec. 7080. (1) A multiple employer welfare arrangement security fund is created within the state treasury. The fund shall be administered by a board of trustees and shall be used solely to pay and discharge covered claims against insolvent MEWAs authorized to do business in this …
Mich. Comp. Laws § 500.7084 Assessments; purpose; limitation; notice; payment; assessments as elements of loss for purpose of establishing rates; liability of employer ceasing to participate in MEWA; certification of collection and receipt of money from assessments; noting delinquencies; collection of delinquent assessment; transfer of money to state treasurer; treasurer or custodian of fund; investments; crediting earnings from investment.
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Sec. 7084. (1) To the extent necessary for payment of covered claims and for payments of reasonable costs of administering the fund, the commissioner shall assess upon and collect from each MEWA an amount which is in the proportion that the benefits the MEWA paid to Michigan empl…
Mich. Comp. Laws § 500.7086 Security fund as creditor of insolvent MEWA; reimbursement from insolvent MEWA.
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Sec. 7086. The security fund after paying a covered claim to an employee or dependent shall have all the rights of a creditor of the insolvent MEWA to the extent of benefits it paid. The board shall have the right and obligation to obtain reimbursement from an insolvent MEWA for …
Mich. Comp. Laws § 500.709 Estimation of claim liabilities; methods.
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Sec. 709. Except as otherwise provided in this chapter, any generally accepted or reasonable actuarial method or combination of methods may be used to estimate all claim liabilities. The methods used for estimating liabilities generally may be aggregate methods or various reserve…
Mich. Comp. Laws § 500.7090 Effective date of chapter.
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Sec. 7090. This chapter shall take effect July 1, 1986.
Mich. Comp. Laws § 500.711 Unearned premium reserves; treatment of premiums due and unpaid; discount of certain gross premiums paid in advance.
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Sec. 711. (1) Unearned premium reserves are required for all health insurance policies and certificates with respect to the period of coverage for which premiums, other than premiums paid in advance, have been paid beyond the date of valuation. (2) If premiums due and unpaid are …
Mich. Comp. Laws § 500.713 Minimum unearned premium reserve; basis; sum of unearned premium and contract reserves; limitation.
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Sec. 713. (1) The minimum unearned premium reserve with respect to any health insurance policy or certificate is the pro rata unearned modal premium that applies to the premium period beyond the valuation date, with such premium determined on the basis of either of the following:…
Mich. Comp. Laws § 500.715 Premium reserves; computation.
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Sec. 715. The insurer may employ suitable approximations and estimates in computing premium reserves including, but not limited to, groupings, averages, and aggregate estimation. The insurer should test periodically the approximations or estimates to determine their continuing ad…
Mich. Comp. Laws § 500.717 Contract reserves; required for certain policies and certificates; exception; addition to claim and premium reserves; methods and procedures; date of incurral defined.
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Sec. 717. (1) Except as otherwise provided for in subsection (2), contract reserves are required for both of the following: (a) All health insurance policies and certificates that use level premiums. (b) All health insurance policies and certificates with respect to which, due to…
Mich. Comp. Laws § 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.
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Sec. 719. (1) Minimum standards with respect to morbidity are those set forth in rules promulgated pursuant to this chapter. Valuation net premiums used under each health insurance policy or certificate shall have a structure consistent with the gross premium structure at the dat…
Mich. Comp. Laws § 500.7200 Scope of chapter.
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Sec. 7200. This chapter applies only to reciprocal insurers.
Mich. Comp. Laws § 500.7202 Reciprocal insurance exchanges; insuring powers.
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Sec. 7202. Individuals, partnerships and public or private corporations of this state, hereby designated subscribers, are hereby authorized to exchange reciprocal or interinsurance contracts with each other or with individuals, partnerships and corporations of other states and co…
Mich. Comp. Laws § 500.7206 Reciprocal insurance exchanges; execution of contract by attorney.
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Sec. 7206. Such contracts may be executed by an attorney, agent or other representative, herein designated as attorney. Such attorney may be an individual, individuals, firm or corporation.
Mich. Comp. Laws § 500.721 Application of alternative method or basis to contract reserve; assumptions; methods to determine sound value of liabilities.
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Sec. 721. (1) If the contract reserve on all health insurance policies and certificates to which an alternative method or basis is applied is not less in the aggregate than the amount determined according to the applicable standards specified in this chapter, an insurer may use a…
Mich. Comp. Laws § 500.7210 Declaration; bond.
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Sec. 7210. (1) The subscribers, through their attorney, shall file with the commissioner a declaration, verified by the oath of such attorney, setting forth: (a) The name or title of the exchange. (b) The location of the principal office of the exchange. (c) The kind or kinds of …
Mich. Comp. Laws § 500.7214 Reciprocal insurance exchanges; actions and suits.
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Sec. 7214. Subscribers at a reciprocal or interinsurance exchange shall only sue or be sued in the name or designation adopted by them.
Mich. Comp. Laws § 500.7218 Reciprocal insurance exchanges; limit of risk; statement of maximum assumed by subscriber.
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Sec. 7218. There shall be filed with the commissioner by such attorney a statement under the oath of such attorney, showing the maximum amount of indemnity upon any single risk, and such attorney shall, whenever and as often as the same shall be required, file with the commission…
Mich. Comp. Laws § 500.7226 Reciprocal insurance exchanges; corporation empowered to exchange contracts.
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Sec. 7226. Any public or private corporation now or hereafter organized under the laws of this state shall, in addition to the rights, powers and franchises specified in its articles of incorporation, have full power and authority to exchange insurance contracts of the kind and c…
Mich. Comp. Laws § 500.723 Tabular reserves; annual review; increments; restriction of future gross premiums; establishment of contract reserves for insufficiency in aggregate.
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Sec. 723. (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 determine the continuing adequacy and reasonableness of the tabular reserves giving consideration to future…
Mich. Comp. Laws § 500.7230 Reciprocal insurance exchanges; records and securities of domestic insurers; safekeeping.
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Sec. 7230. Section 5256 shall apply to domestic reciprocal insurers.
Mich. Comp. Laws § 500.7234 Reciprocal insurance exchanges; filing of fire, lightning, or windstorm rates.
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Sec. 7234. Any reciprocal or interinsurance exchange exchanging contracts of indemnity between its subscribers and providing coverage for loss by fire, lightning or windstorm and which maintains its own rates and schedule of rates shall not be required to join or become a member …
Mich. Comp. Laws § 500.725 Reinsurance; determination of increases to, or credit against, reserves.
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Sec. 725. Increases to, or credits against, reserves carried arising because of reinsurance assumed or reinsurance ceded, shall be determined in a manner consistent with minimum reserve standards described in this chapter and with all applicable provisions of the reinsurance cont…
Mich. Comp. Laws § 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.
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Sec. 729. (1) The following minimum morbidity standards for disability income benefits for individual health insurance policies shall be used: (a) For contract reserves for policies issued on or after the effective date of this chapter, the 1985 commissioners individual disabilit…
Mich. Comp. Laws § 500.7300 Scope of chapter.
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Sec. 7300. This chapter applies only to domestic, foreign and alien insurers transacting title insurance.