Form with instructions issued pursuant to public act 84 of 1992 -- long-term care insurance

Issued and entered June 30, 1993 by David J. Dykhouse, Commissioner of Insurance

On June 2, 1992, Public Act 84 was signed by the Governor, implementing requirements for long-term care insurers. The attached form entitled, "Statewide Agent Sales Reporting Form for Long-Term Care Insurance in Michigan" must be submitted to the Michigan Insurance Bureau by all companies selling long-term care insurance in Michigan.

APPLICABLE LAW

Section 3942a; MCLA 500.3942A; MSA 24.13942a of the Michigan Insurance Code provides:

(1) Every insurer marketing long-term care insurance in Michigan shall comply with all of the following reporting requirements for the purpose of reviewing more closely agent activities regarding the sale of long-term care insurance:

(a) Maintain records for each agent of that agent's amount of replacement sales as a percent of the agent's total annual sales and the amount of lapses of long-term care insurance policies sold by the agent as a percent of the agent's total annual sales and report annually by June 30 the top 10% of its agents that have the greatest percentages of lapses and replacements.

(b) Report annually by June 30 the number of lapsed policies as a percent of its total annual sales and as a percent of its total number of policies in force as of the end of the preceding calendar year.

(c) Report annually by June 30 the number of replacement policies sold as a percent of its total annual sales and as a percent of its total number of policies in force as of the preceding calendar year.

(2) All reports prepared pursuant to subsection (1) shall be on a statewide basis.

FORM WITH INSTRUCTIONS

NOTICE: This form must be complete when submitted to the Insurance Bureau. Incomplete forms will be returned to the originator.

Complete and return the Statewide Agent Sales Reporting Form for Long-Term Care Insurance on or before June 30.

Questions regarding this form should be addressed to the Research & Analysis Division of the Insurance Bureau at the address below or call 517/373-2984.

Completed forms should be submitted to:

Michigan Insurance Bureau
Research and Analysis Division
P.O. Box 30220
Lansing, MI 48909-7720