Michigan Administrative Code
Department - Insurance and Financial Services
Insurance
Credit Insurance Rates, Forms, And Standards
Section R. 550.201 - Definitions
Universal Citation: MI Admin Code R. 550.201
Current through Vol. 24-04, March 15, 2024
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.
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.
Disclaimer: These regulations may not be the most recent version. Michigan may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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