Michigan Laws 500.3951 – Policy summary; compliance with MCL 500.3933; additional provisions; monthly report
Current as of: 2023 | Check for updates
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(1) A policy summary shall be delivered for a life insurance policy or certificate that provides long-term care benefits. The summary shall comply with the requirements in section 3933. For direct response solicitations, the insurer shall deliver the policy summary upon the applicant‘s request and shall make the delivery no later than at the time of policy delivery. In addition to the policy summary provisions in section 3933, the policy summary shall include all of the following:
(a) An explanation of how the long-term care benefit interacts with other components of the policy, including deductions from death benefits.
Terms Used In Michigan Laws 500.3951
- Applicant: means :
(i) For an individual long-term care insurance policy, the person who seeks to contract for long-term care benefits. See Michigan Laws 500.3901Insurer: means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other legal entity, engaged or attempting to engage in the business of making insurance or surety contracts. See Michigan Laws 500.106 month: means a calendar month; the word "year" a calendar year; and the word "year" alone shall be equivalent to the words "year of our Lord". See Michigan Laws 8.3j person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l Policy: means an insurance policy or certificate, rider, or endorsement delivered or issued for delivery in this state by an insurer or subsidiary of a nonprofit health care corporation. See Michigan Laws 500.3901
(b) An illustration of the amount of benefits, the length of benefit, and the guaranteed lifetime benefits, if any, for each covered person.
(c) Any exclusions, reductions, and limitations on benefits of long-term care.
(d) If applicable to the policy type, the summary shall also include all of the following:
(i) A disclosure of the effects of exercising other rights under the policy.
(ii) A disclosure of guarantees related to long-term care costs of insurance charges.
(iii) Current and projected maximum lifetime benefits.
(2) If a long-term care benefit, funded through a life insurance vehicle by the acceleration of the death benefit, is in benefit payment status, a monthly report shall be provided to the policyholder. The report shall include all of the following:
(a) Any long-term care benefits paid out during the month.
(b) An explanation of any changes in the policy, for example, death benefits or cash values due to long-term care benefits being paid out.
(c) The amount of long-term care benefits existing or remaining.