550.601 Credit insurance act; short title. Sec. 1. This act shall be known and may be cited as “credit insurance act”. History: 1958, Act 173, Eff. Sept. 13, 1958 Compiler’s Notes: For transfer of the Department of Insurance and Office of the Commissioner on Insurance from the Department of Licensing and Regulation to the Department […]
550.602 Scope of act. Sec. 2. All life insurance and all accident and health insurance sold in connection with loans or other credit transactions shall be subject to the provisions of this act except such insurance sold in connection with loans on dwellings or mobile homes where the term of the loan is in excess […]
550.603 Credit insurance act; definitions. Sec. 3. As used in this act: (1) “Credit life insurance” means insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction. (2) “Credit accident and health insurance” means insurance on a debtor to provide indemnity for payments becoming due […]
550.604 Credit life insurance, credit accident and health insurance; forms. Sec. 4. Credit life insurance and credit accident and health insurance shall be issued only in the following forms: (a) Individual policies of life insurance issued to debtors on the term plan; (b) Individual policies of accident and health insurance issued to debtors on a […]
550.605 Credit life insurance; amount. Sec. 5. The amount of credit life insurance shall not exceed the indebtedness. Where indebtedness repayable in substantially equal installments is secured by an individual policy of credit life insurance the amount of insurance shall not exceed the approximate unpaid indebtedness on the date of death and, where secured by […]
550.606 Periodic indemnity payable. Sec. 6. The amount of periodic indemnity payable by credit accident and health insurance in the event of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of indebtedness and shall not exceed the original indebtedness divided by the number of periodic installments. […]
550.607 Term; refund on termination prior to expiration. Sec. 7. The term of any credit life insurance or credit accident and health insurance shall commence, subject to acceptance by the insurer, on the date when the debtor becomes obligated to the creditor, except that, where a group policy provides coverage with respect to existing obligations, […]
550.608 Evidence of insurance; policy or certificate delivery. Sec. 8. All credit life insurance and credit accident and health insurance sold shall be evidenced by an individual policy, or in the case of group insurance by a certificate of insurance, which individual policy or group certificate of insurance shall be delivered to the debtor. History: […]
550.609 Policy or certificate; contents. Sec. 9. Each individual policy or group certificate of credit life insurance, and credit accident and health insurance in addition to other requirements of law, shall set forth the name and home office address of the insurer, and the identity by name or otherwise of the person or persons insured, […]
550.610 Policy or certificate; delivery to debtor. Sec. 10. The individual policy or group certificate of insurance shall be delivered to the insured debtor at the time the indebtedness is incurred except as hereinafter provided. History: 1958, Act 173, Eff. Sept. 13, 1958 Compiler’s Notes: For transfer of authority, powers, duties, functions, and responsibilities of […]
550.611 Policy or certificate; application, contents. Sec. 11. If the individual policy or group certificate of insurance is not delivered to the debtor at the time the indebtedness is incurred, a copy of the application for such policy or a notice of proposed insurance, signed by the debtor and setting forth the name and home […]
550.612 Papers filed with commissioner of issuing state. Sec. 12. All policies, certificates of insurance, notices of proposed insurance, applications for insurance, binder, endorsements and riders shall be filed with the commissioner of the state in which the policy is issued. History: 1958, Act 173, Eff. Sept. 13, 1958 Compiler’s Notes: For transfer of authority, […]
550.613 Papers filed with commissioner of issuing state; disapproval. Sec. 13. The commissioner within 30 days after the filing of all policies, certificates of insurance, notices of proposed insurance, applications for insurance, binders, endorsements and riders, in addition to other requirements of law, may disapprove any such form if the benefits provided therein are not […]
550.614 Papers filed with commissioner of issuing state; use, hearing, prior written approval. Sec. 14. If the commissioner notifies the insurer that the form does not comply with this subsection, it is unlawful thereafter for such insurer to issue or use such form. In such notice, the commissioner shall specify the reason for his disapproval […]
550.615 Papers filed with commissioner of issuing state; withdrawal of approval. Sec. 15. The commissioner, at any time after a hearing, of not less than 20 days written notice to the insurer, may withdraw his approval of any such form on any of such grounds. History: 1958, Act 173, Eff. Sept. 13, 1958 Compiler’s Notes: […]
550.616 Papers filed with commissioner of issuing state; use after withdrawal of approval. Sec. 16. It is not lawful for the insurer to issue such forms or use them after the effective date of such withdrawal of approval. History: 1958, Act 173, Eff. Sept. 13, 1958 Compiler’s Notes: For transfer of authority, powers, duties, functions, […]
550.617 Papers filed with commissioner of issuing state; judicial review. Sec. 17. Any order or final determination of the commissioner under the provisions of this section shall be subject to judicial review. History: 1958, Act 173, Eff. Sept. 13, 1958 Compiler’s Notes: For transfer of authority, powers, duties, functions, and responsibilities of the insurance bureau […]
550.618 Schedule of premium rates; refunds; nonissuance credit. Sec. 18. Each insurer issuing credit life insurance or credit accident and health insurance shall file with the commissioner its schedules of premium rates for use in connection with such insurance. Any insurer may revise such schedules from time to time, and shall file such revised schedules […]
550.619 Policies issuable only by authorized insurers. Sec. 19. All policies of credit life insurance and credit accident and health insurance shall be delivered or issued for delivery in this state only by an insurer authorized to do an insurance business therein, and shall be issued only through holders of licenses or authorizations issued by […]
550.620 Payment of claims; claim files; group insurance claims. Sec. 20. All claims shall be promptly reported to the insurer or its designated claim representative, and the insurer shall maintain adequate claim files. All claims shall be settled as soon as possible and in accordance with the terms of the insurance contract. All claims shall […]
