Sec. 8186.
(1) Standards of valuation for certificates issued before April 1, 1991 shall be those provided by the laws applicable before April 1, 1990.
(2) The minimum standards of valuation for certificates issued on or after April 1, 1991 shall be under valuation methods and standards, including interest assumptions, in accordance with the laws of this state applicable to life insurers issuing policies containing like benefits and shall be based on the following tables:
(a) For certificates of life insurance, the commissioner's 1980 standard ordinary mortality table or any more recent table made applicable to life insurers.
(b) For annuity and pure endowment certificates, for total and permanent disability benefits, for accidental death benefits, and for noncancelable accident and health benefits, the tables as are authorized for use by life insurers in this state.
(3) The commissioner, in his or her discretion, may accept other standards for valuation if the commissioner finds that the reserves produced thereby will not be less in the aggregate than reserves computed in accordance with the minimum valuation standard prescribed in this section. The commissioner, in his or her discretion, may vary the standards of mortality applicable to all benefit contracts on substandard lives or other extra hazardous lives by any society authorized to do business in this state.
(4) A society, with the consent of the commissioner of insurance of the state of domicile of the society and under conditions, if any, that the commissioner may impose, may establish and maintain reserves on its certificates in excess of the reserves required thereunder, so long as the contractual rights of any benefit member are not affected.
History: Add. 1990, Act 1, Eff. Apr. 1, 1990 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)
218-1956-81A - Chapter 81a Fraternal Benefit Societies (500.8161...500.8199a)
Section 500.8161 - Definitions.
Section 500.8162 - Society Governed by Chapter; Exemption.
Section 500.8163 - Society as Charitable and Benevolent Institution; Tax Exemption.
Section 500.8164 - Definition of Fraternal Benefit Society.
Section 500.8165 - Society Operating on Lodge System; Requirements; Lodges for Children.
Section 500.8170 - Personal Liability; Indemnification and Reimbursement; Purchase of Insurance.
Section 500.8171 - Waiver of Society's Laws.
Section 500.8173 - Reincorporation Not Required.
Section 500.8174 - Amendment to Laws.
Section 500.8175 - Not for Profit Institution; Purposes; Reporting Real or Personal Property.
Section 500.8176 - Reinsurance Agreement.
Section 500.8178 - Domestic Fraternal Benefit Society as Mutual Life Insurance Company.
Section 500.8179 - Contractual Benefits; Specifying Persons Covered in Rules.
Section 500.8181 - Attachment, Garnishment, or Other Process.
Section 500.8182 - Benefit Contracts.
Section 500.8184 - Investments Generally.
Section 500.8186 - Standards of Valuation for Certificates; Excess Reserves.
Section 500.8187 - Reports; Annual Statement; Valuation of Certificates; Penalty.
Section 500.8189 - Examination of Society.
Section 500.8190 - Foreign or Alien Society; License Required; Compliance; Conditions.
Section 500.8193 - Application or Petition for Injunction; Recognition.
Section 500.8194 - Agent of Society; License Required; Exceptions.
Section 500.8195 - Society Subject to Chapter 20.
Section 500.8196 - Service of Process.
Section 500.8198 - Decisions and Findings of Commissioner; Judicial Review.
Section 500.8199 - Exemptions.
Section 500.8199a - Additional Chapters and Provisions Applicable to Fraternal Benefit Society.