LANSING — Insurance Commissioner D. Joseph Olson announced the rescission or amendment of over 60 administrative rules which he described as "unnecessary, obsolete, or overly intrusive." The action came as a result of a review of all existing regulations, which was performed at the request of the Governor's Office of Regulatory Reform, for the purpose of eliminating regulations which are duplicative, obsolete, or unduly burdensome. The project, which stemmed from the Governor's Executive Order 1995-6, has resulted in the rescission of over 2400 rules thus far.

The insurance regulations which were rescinded were not necessary for the protection of the public or the proper regulation of the business of insurance, Commissioner Olson said. As an example, among those rescinded were rules prescribing the location or frequency of written examinations for insurance agents, which have been rendered obsolete by the use of third party contractors to administer the exams.

Also eliminated were requirements for life and health insurance advertising to be reviewed by the Insurance Bureau prior to use. Because the legal criteria for such advertisements remain, it is not necessary, nor a good use of resources, to maintain the prior approval requirement, Mr. Olson said.

The rules project parallels an ongoing project to eliminate unnecessary or obsolete Insurance Bureau bulletins, which thus far has resulted in the withdrawal of over 40 bulletins.

"This review has given us the opportunity to streamline our requirements and to remove obstacles to doing the business of insurance in our state. The more attractive Michigan is to insurers, the more choices consumers have, and everyone benefits from the competition which results," the Commissioner said.

The rules rescission is effective as of June 19, 1997. Administrative rules, or regulations, are promulgated under the authority of the Commissioner pursuant to the Administrative Procedures Act and have the force and effect of law. Bulletins provide information or convey the Commissioner's position on a particular matter and are binding upon the Insurance Bureau.