Sec. 3951.
(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.
(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.
History: Add. 1992, Act 84, Imd. Eff. June 2, 1992 Popular Name: Act 218
Structure Michigan Compiled Laws
Chapter 500 - Insurance Code of 1956
Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)
218-1956-39 - Chapter 39 Long-Term Care Insurance (500.3901...500.3955)
Section 500.3901 - Long-Term Care Insurance; Definitions.
Section 500.3902 - Offer of Long-Term Care Coverage by Subsidiary of Health Care Corporation.
Section 500.3908 - Long-Term Care Partnership Program Policy; Conversion or Replacement.
Section 500.3911 - Preexisting Condition; Limitation Period; Definition.
Section 500.3913 - Home Health Care Benefits.
Section 500.3915 - Certain Conditions Prohibited.
Section 500.3919 - Institutionalization; Extension of Benefits; Limitations.
Section 500.3929 - Increasing Premiums Prohibited; Conditions.
Section 500.3933 - Summary of Coverage.
Section 500.3935 - Statement Relating to Request for Additional Information.
Section 500.3937 - Shopper's Guide; Format; Providing to Applicants; Exception.
Section 500.3941 - Advertising; Filing Copy With Commissioner.
Section 500.3942a - Reporting Requirements; Agent Activities; Preparation of Report.
Section 500.3943 - Right to Return Policy; Notice; “Direct Response Solicitation” Defined.
Section 500.3945 - Violation; Penalty.
Section 500.3949 - Life and Long-Term Care Benefits; Marketing; Compliance.
Section 500.3953 - Disclosure Statement.
Section 500.3955 - Compliance With Chapter and Applicable Laws.