Requirements for life and policy forms

Issued and entered June 30, 1972 by Russell E. Van Hooser, Commissioner of Insurance

This Bulletin contains requirements for policy titles, appearance and terminology that apply to all currently filed life and health insurance forms as well as any future filings.

Effective immediately, I shall disapprove all policy and application filings containing titles, appearance and terminology that conflict with the requirements stated in this Bulletin.

Existing filings affected by the requirements stated in this Bulletin must be revised and resubmitted no later than December 1, 1972.

Effective January 1, 1973, I hereby withdraw approval for all presently approved life and health insurance forms containing titles, appearance and terminology conflicting with the requirements stated in this Bulletin, that have not been revised and resubmitted.

I shall expect your acknowledgment of this Bulletin no later than July 30, 1972. The acknowledgment letter should include a list of all presently approved policy and application forms containing titles, appearance and terminology conflicting with the requirements stated in this Bulletin. At that time we shall also need your advice as to whether you intend to withdraw the forms from use in Michigan or to revise them
in accordance with these requirements.

POLICY TITLES

Life Insurance

1. The title must clearly describe the coverage provided, i.e., Whole Life Policy, Decreasing Term Life Policy, etc. In policies other than retirement income and endowment, the word "life" must be included.

2. Titles which contain benefit limits or which refer to benefit payments are not acceptable.

Accident and Health Insurance

1. A title shall clearly describe the type of basic benefits provided, i.e., Hospital Indemnity Policy, Hospital, Medical and Surgical Policy, etc.

2. Titles which imply any relationship to Medicare or other government health programs are not acceptable. However, the title of a policy supplementary to Medicare may indicate that it is a Medicare supplement.

3. Titles containing total or periodic benefits or references to currency, checks, money, cash, dollars, income or any similar terms are not acceptable.

MEDICARE SUPPLEMENTS

1. A policy shall not be titled as a Medicare supplement unless its provisions dovetail into, and its benefits are paid immediately above or subsequent to, those of Medicare.

2. A policy containing deductibles in addition to Medicare benefits or including pre-existing conditions limitations may be titled as a limited Medicare supplement. Any such policy shall bear an overprint in a large size of type, in contrasting color, to the effect that "This policy is a limited Medicare supplement, check the limitations
carefully."

APPLICATIONS

An application for life insurance and for accident and health insurance shall be identified as an "application." The form shall not refer to " enrollment" or to the act of "enrolling" or "joining."

TERMINOLOGY

1. The term "official" shall not be applied to any policy or application form.

2. The premium for any life or accident and health insurance must be referred to as a "premium." No other terms, such as "rate," "cost," or " price" are acceptable.

APPEARANCE

Forms shall not have an appearance substantially similar to any check, currency or security.