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Governor Rick Snyder signs legislation updating insurance requirements
June 03, 2014
Tuesday, June 3, 2014
LANSING, Mich. – Gov. Rick Snyder today signed a bipartisan bill package modernizing Michigan’s life insurance code.
“These updates will provide consistency, clarity and guidance to both insurance providers and policyholders to help deliver the best possible service to all Michiganders,” Snyder said.
House Bill 5146, sponsored by state Rep. Kate Segal, updates state law to coincide with the model act of the National Association of Insurance Commissioners. The bill redefines “employee” as it applies to group life insurance, defines “dependents”, allows for the issuance of insurance to certain associations and determines the requirements for establishment of a discretionary group and recognition of insurance issued out of state.
HB 5147, sponsored by state Rep. Ken Goike, clarifies that if a variable life insurance or annuity product is approved by the U.S. Security Exchange Commission for sale in Michigan it is automatically compliant with the existing state insurance code.
HB 5148, sponsored by state Rep. Marcia Hovey-Wright, expands insurers’ investment options to include preferred stock issued by companies organized in Canada as qualified assets. Qualified assets now include governmental bonds or securities for the U.S. or foreign governments.
HB 5149, sponsored by state Rep. Tom Cochran, adds chronic illness as a qualifying event that would trigger payment of accelerated benefits under a life insurance policy. Chronic illness is defined as a permanent medical condition that results in an individual being unable to attend to basic physical activities meant for personal care.
HB 5150, sponsored by state Rep. Ben Glardon, allows a life insurance application to be obtained and submitted electronically. The bill also clarifies the refund process for cases where policyholders cancel their subscription within the first 10 days of receipt.
The bills are now Public Acts 139-143 of 2014.
The governor also signed two other bills:
HB 4656, sponsored by state Rep. Kate Segal, allows 16-and 17-year-old minors to work without hourly restrictions if they have received a GED. The employer is required to obtain an available record of the minor’s high school equivalency certificate before employment. It is now PA 144.
Senate Bill 869, sponsored by state Sen. Goeff Hansen, allows the Natural Resources Commission to define the length of black bass fishing season to account for changes in seasonal large and smallmouth population. It is now PA 145.
For more information on legislation, visit legislature.michigan.gov.