Michigan Compiled Laws
218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737)
Section 500.703 - Claim Reserves and Claim Expense Reserves Required; Conditions; Testing for Adequacy and Reasonableness.

Sec. 703.
(1) Claim reserves are required for all incurred but unpaid claims on all health insurance policies and certificates.
(2) Appropriate claim expense reserves are required with respect to the estimated expense of settlement of all incurred but unpaid claims on health insurance policies and certificates.
(3) All claim reserves on health insurance policies and certificates for prior valuation years are to be tested for adequacy and reasonableness consistent with claim runoff schedules in accordance with the insurer's annual statutory financial statement including consideration of any residual unpaid liability.
History: Add. 1994, Act 148, Imd. Eff. June 7, 1994 Popular Name: Act 218

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Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 500 - Insurance Code of 1956

Act 218 of 1956 - The Insurance Code of 1956 (500.100 - 500.8302)

218-1956-7 - Chapter 7 Reserve Standards for Disability Insurance (500.701...500.737)

Section 500.701 - Definitions.

Section 500.702 - Health Insurance Reserves; Determination of Adequacy; Basis.

Section 500.703 - Claim Reserves and Claim Expense Reserves Required; Conditions; Testing for Adequacy and Reasonableness.

Section 500.705 - Disability Income Claim Reserves; Maximum Interest Rate; Morbidity Standards Specified in Rules; Exception; Group Disability Income Claim Reserves; Duration From Date of Disablement 2 Years or More but Less Than 5 Years; Basis; Requ...

Section 500.707 - Health Insurance Benefits Other Than Disability Income; Claim Reserves Maximum Interest Rate; Basis of Claim Reserve.

Section 500.709 - Estimation of Claim Liabilities; Methods.

Section 500.711 - Unearned Premium Reserves; Treatment of Premiums Due and Unpaid; Discount of Certain Gross Premiums Paid in Advance.

Section 500.713 - Minimum Unearned Premium Reserve; Basis; Sum of Unearned Premium and Contract Reserves; Limitation.

Section 500.715 - Premium Reserves; Computation.

Section 500.717 - Contract Reserves; Required for Certain Policies and Certificates; Exception; Addition to Claim and Premium Reserves; Methods and Procedures; Date of Incurral Defined.

Section 500.719 - Morbidity Standards; Rules; Structure of Valuation Net Premiums; Valuation of Health Insurance Policies and Certificates for Which Tabular Morbidity Standards Not Specified; Maximum Interest Rate for Contract Reserves; Termination R...

Section 500.721 - Application of Alternative Method or Basis to Contract Reserve; Assumptions; Methods to Determine Sound Value of Liabilities.

Section 500.723 - Tabular Reserves; Annual Review; Increments; Restriction of Future Gross Premiums; Establishment of Contract Reserves for Insufficiency in Aggregate.

Section 500.725 - Reinsurance; Determination of Increases To, or Credit Against, Reserves.

Section 500.729 - Individual Insurance Policies; Minimum Morbidity Standards for Disability Income Benefits; Basis of Contract Reserve Standards for Certain Hospital, Surgical, and Maternity Benefits; Basis of Contract Reserve Standards for Certain C...

Section 500.731 - Disability Benefits for Group Health Insurance Certificates; Minimum Morbidity Standards.

Section 500.733 - Maximum Interest Rates.

Section 500.735 - Mortality Basis; Use of Other Mortality Tables; Request for Approval.

Section 500.737 - Rules.