Bill Text: MI HB4328 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Insurance; annuities; regulation of annuity sales; provide for. Amends secs. 4151, 4153, 4155 & 4165 of 1956 PA 281 (MCL 500.4151 et seq.); adds secs. 4158, 4159, 4160, 4161 & 4162 & ch. 41B & repeals sec. 4157 of 1956 PA 218 (MCL 500.4157).

Spectrum: Partisan Bill (Democrat 25-0)

Status: (Introduced - Dead) 2011-03-01 - Printed Bill Filed 02/25/2011 [HB4328 Detail]

Download: Michigan-2011-HB4328-Introduced.html

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HOUSE BILL No. 4328

 

February 24, 2011, Introduced by Reps. Constan, Smiley, Santana, Darany, Bauer, Geiss, Slavens, Liss, Barnett, Tlaib, Irwin, Hovey-Wright, Oakes, Rutledge, Cavanagh, Haugh, Switalski, Dillon, Segal, Durhal, McCann, Brunner, Meadows and Lipton and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 4151, 4153, 4155, and 4165 (MCL 500.4151,

 

500.4153, 500.4155, and 500.4165), as added by 2006 PA 399, and by

 

adding sections 4158, 4159, 4160, 4161, and 4162 and chapter 41B;

 

and to repeal acts and parts of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4151. As used in this chapter:

 

     (a) "Annuity" means a fixed annuity or variable an annuity

 

that is an insurance product under state law that is individually

 

solicited, whether the product is classified as an individual or

 

group annuity.

 

     (b) "Insurance producer" or "producer" means insurance

 

producer as defined in section 1201 and includes a business entity

 

described in section 1205(2) that is licensed as an insurance

 

producer under this act.

 

     (c) "Recommendation" means advice provided by an insurance

 

producer, or an insurer where if no producer is involved, to an

 

individual consumer that results in a purchase, or exchange, or

 

replacement of an annuity in accordance with that advice.

 

     (d) "Replacement" or "replace" means a transaction in which a

 

new policy or contract is to be purchased, and it is known or

 

should be known to the proposing producer, or to the proposing

 

insurer if there is no producer, that by reason of the transaction,

 

an existing policy or contract has been or is to be 1 of the

 

following:

 

     (i) Lapsed, forfeited, surrendered or partially surrendered,

 

assigned to the replacing insurer, or otherwise terminated.

 

     (ii) Converted to reduced paid-up insurance, continued as

 

extended term insurance, or otherwise reduced in value by the use

 

of nonforfeiture benefits or other policy values.

 

     (iii) Amended so as to effect either a reduction in benefits or

 

in the term for which coverage would otherwise remain in force or

 

for which benefits would be paid.

 

     (iv) Reissued with any reduction in cash value.

 

     (v) Used in a financed purchase.

 

     (e) "Suitability information" means information that is

 

reasonably appropriate to determine the suitability of a

 

recommendation, including all of the following:

 

     (i) Age.

 

     (ii) Annual income.

 

     (iii) Financial situation and needs, including the financial

 

resources used for the funding of the annuity.

 

     (iv) Financial experience.

 

     (v) Financial objectives.

 

     (vi) Intended use of the annuity.

 

     (vii) Financial time horizon.

 

     (viii) Existing assets, including investment and life insurance

 

holdings.

 

     (ix) Liquidity needs.

 

     (x) Liquid net worth.

 

     (xi) Risk tolerance.

 

     (xii) Tax status.

 

     Sec. 4153. (1) This chapter applies to any recommendation to

 

purchase, or exchange, or replace an annuity made to a consumer by

 

an insurance producer, or by an insurer where if no producer is

 

involved, that results in the purchase, or exchange, or replacement

 

recommended.

 

     (2) This chapter does not apply to any recommendation to

 

purchase, or exchange, or replace an annuity involving any of the

 

following:

 

     (a) Direct response solicitations where if there is no

 

recommendation based on information collected from the consumer.

 

     (b) Contracts used to fund any of the following:

 

     (i) An employee pension or welfare benefit plan that is covered

 

by the employee retirement and income security act of 1974, Public

 

Law 93-406.

 

     (ii) A plan described by 26 USC 401(a), 26 USC 401(k), 26 USC

 

403(b), 26 USC 408(k), or 26 USC 408(p), if established or

 

maintained by an employer.

 

     (iii) A government governmental or church plan defined in 26 USC

 

414, a government or church welfare benefit plan, or a deferred

 

compensation plan of a state or local government or tax exempt

 

organization under 26 USC 457.

 

     (iv) A nonqualified deferred compensation arrangement

 

established or maintained by an employer or plan sponsor.

 

     (v) Settlements of or assumptions of liabilities associated

 

with personal injury litigation or any dispute or claim resolution

 

process.

 

     (vi) Formal prepaid funeral contracts.

 

     Sec. 4155. (1) In recommending to a consumer the purchase of

 

an annuity or the exchange of an annuity that results in another

 

insurance transaction or series of insurance transactions, the

 

insurance producer, or the insurer where if no producer is

 

involved, shall have reasonable grounds for believing that the

 

recommendation is suitable for the consumer on the basis of the

 

facts disclosed by the consumer as to his or her investments and

 

other insurance products and as to his or her financial situation

 

and needs, . including the consumer's suitability information, and

 

that there is a reasonable basis to believe all of the following:

 

     (a) In addition to the requirements under chapter 41b, the

 

consumer has been reasonably informed of various features of the

 

annuity, such as the potential surrender period and surrender

 

charge, potential tax penalty if the consumer sells, exchanges,

 

surrenders, or annuitizes the annuity, mortality and expense fees,

 

investment advisory fees, potential charges for and features of

 

riders, limitations on interest returns, insurance and investment

 

components, and market risk.

 

     (b) The consumer would benefit from certain features of the

 

annuity, such as tax-deferred growth, annuitization, or death or

 

living benefit.

 

     (c) The particular annuity as a whole, the underlying

 

subaccounts to which funds are allocated at the time of purchase or

 

exchange of the annuity, and riders and similar product

 

enhancements, if any, are suitable and, for an exchange or

 

replacement, the transaction as a whole is suitable, for the

 

particular consumer based on his or her suitability information.

 

     (d) For an exchange or replacement of an annuity, the exchange

 

or replacement is suitable including taking into consideration all

 

of the following:

 

     (i) Whether the consumer will incur a surrender charge, be

 

subject to the commencement of a new surrender period, lose

 

existing benefits such as death, living, or other contractual

 

benefits, or be subject to increased fees, investment advisory

 

fees, or charges for riders and similar product enhancements.

 

     (ii) Whether the consumer would benefit from product

 

enhancements and improvements.

 

     (iii) Whether the consumer has had another annuity exchange or

 

replacement and, in particular, an exchange or replacement within

 

the preceding 36 months.

 

     (2) Prior to the execution of a purchase, or exchange, or

 

replacement of an annuity resulting from a recommendation, an

 

insurance producer, or an insurer where if no producer is involved,

 

shall make reasonable efforts to obtain all of the following

 

information: the consumer's suitability information.

 

     (a) The consumer's financial status.

 

     (b) The consumer's tax status.

 

     (c) The consumer's investment objectives.

 

     (d) Such other information used or considered to be reasonable

 

by the insurance producer, or the insurer where no producer is

 

involved, in making recommendations to the consumer.

 

     (3) Except as provided under subsection (4), neither an

 

insurance producer, nor an insurer where no producer is involved,

 

shall have any obligation to a consumer under subsection (1)

 

related to any recommendation if a consumer does any of the

 

following:

 

     (a) Refuses to provide relevant information requested by the

 

insurer or insurance producer.

 

     (b) Decides to enter into an insurance transaction that is not

 

based on a recommendation of the insurer or insurance producer.

 

     (c) Fails to provide complete or accurate information.

 

     (4) An insurer or insurance producer's recommendation subject

 

to subsection (1) shall be reasonable under all the circumstances

 

actually known to the insurer or insurance producer at the time of

 

the recommendation.

 

     (3) Except as permitted under subsection (4), an insurer shall

 

not issue an annuity recommended to a consumer unless there is a

 

reasonable basis to believe that the annuity is suitable based on

 

the consumer's suitability information.

 

     (4) An insurer's issuance of an annuity shall be reasonable

 

under all of the circumstances actually known to the insurer at the

 

time the annuity is issued. However, neither a producer nor an

 

insurer has any obligation to a consumer under subsection (1) or

 

(3) related to any annuity transaction if any of the following

 

apply:

 

     (a) A recommendation is not made.

 

     (b) A recommendation was made and was later found to have been

 

prepared based on materially inaccurate information provided by the

 

consumer.

 

     (c) A consumer refuses to provide relevant suitability

 

information and the annuity transaction is not recommended.

 

     (d) A consumer decides to enter into an annuity transaction

 

that is not based on a recommendation of the insurer or the

 

insurance producer.

 

     (5) A producer or, if no producer is involved, the responsible

 

insurer representative, shall at the time of sale do all of the

 

following:

 

     (a) Make a record of any recommendation subject to subsection

 

(1).

 

     (b) Obtain a customer-signed statement documenting a

 

customer's refusal to provide suitability information, if any.

 

     (c) Obtain a customer-signed statement acknowledging that an

 

annuity transaction is not recommended if a customer decides to

 

enter into an annuity transaction that is not based on the

 

producer's or insurer's recommendation.

 

     Sec. 4158. (1) An insurer shall establish a supervision system

 

that is reasonably designed to achieve the insurer's and its

 

producers' compliance with this chapter, including, but not limited

 

to, all of the following:

 

     (a) Maintain reasonable procedures to inform its producers of

 

the requirements of this chapter and incorporate the requirements

 

of this chapter into relevant producer training manuals.

 

     (b) Establish standards for producer product training and

 

maintain reasonable procedures to require its producers to comply

 

with section 4160.

 

     (c) Provide product-specific training and training materials

 

that explain all material features of its annuity products to its

 

producers.

 

     (d) Maintain procedures for review of each recommendation

 

before issuance of an annuity that are designed to ensure that

 

there is a reasonable basis to determine that a recommendation is

 

suitable. Review procedures may apply a screening system for the

 

purpose of identifying selected transactions for additional review

 

and may be accomplished electronically or through other means,

 

including, but not limited to, physical review. An electronic or

 

other system may be designed to require additional review only of

 

those transactions identified for additional review by the

 

selection criteria.

 

     (e) Maintain reasonable procedures to detect recommendations

 

that are not suitable. This may include, but is not limited to,

 

confirmation of consumer suitability information, systematic

 

customer surveys, interviews, confirmation letters, and programs of

 

internal monitoring. This subdivision does not prevent an insurer

 

from complying with this subdivision by applying sampling

 

procedures or by confirming suitability information after issuance

 

or delivery of the annuity.

 

     (f) Annually provide a report to senior management, including

 

to the senior manager responsible for audit functions, that details

 

a review, with appropriate testing, reasonably designed to

 

determine the effectiveness of the supervision system, the

 

exceptions found, and corrective action taken or recommended, if

 

any.

 

     (2) This section does not restrict an insurer from contracting

 

for performance of a function, including maintenance of procedures,

 

required under subsection (1). An insurer shall take appropriate

 

corrective action and may be subject to sanctions and penalties

 

under this act regardless of whether the insurer contracts for

 

performance of a function and regardless of the insurer's

 

compliance with subsection (3).

 

     (3) An insurer's supervision system under this section shall

 

include supervision of contractual performance. This includes, but

 

is not limited to, the following:

 

     (a) Monitoring and, as appropriate, conducting audits to

 

assure that the contracted function is properly performed.

 

     (b) Annually obtaining a certification from a senior manager

 

who has responsibility for the contracted function that the manager

 

has a reasonable basis to represent, and does represent, that the

 

function is properly performed.

 

     (4) An insurer is not required to include in its system of

 

supervision a producer's recommendations to consumers of products

 

other than the annuities offered by the insurer.

 

     Sec. 4159. A producer shall not dissuade, or attempt to

 

dissuade, a consumer from any of the following:

 

     (a) Truthfully responding to an insurer's request for

 

confirmation of suitability information.

 

     (b) Filing a complaint.

 

     (c) Cooperating with the investigation of a complaint.

 

     Sec. 4160. (1) A producer shall not solicit the sale of an

 

annuity product unless the producer has adequate knowledge of the

 

product to recommend the annuity and the producer is in compliance

 

with the insurer's standards for product training. A producer may

 

rely on insurer-provided product-specific training standards and

 

materials to comply with this subsection.

 

     (2) A producer who engages in the sale of annuity products

 

shall complete a 1-time 4-credit training course approved by the

 

commissioner and provided by an insurance agent program of study

 

registered under chapter 12. Insurance producers who hold a life

 

insurance line of authority on the effective date of the amendatory

 

act that added this section and who desire to sell annuities shall

 

complete the requirements of this subsection within 6 months after

 

the effective date of the amendatory act that added this section.

 

Individuals who obtain a life insurance line of authority on or

 

after the effective date of the amendatory act that added this

 

section shall not engage in the sale of annuities until the annuity

 

training course required under this subsection has been completed.

 

     (3) The minimum length of the training required under

 

subsection (2) shall be not less than 4 hours, as defined in

 

section 1204c, and may be longer.

 

     (4) The training required under subsection (2) shall include

 

information on all of the following:

 

     (a) The types of annuities and various classifications of

 

annuities.

 

     (b) Identification of the parties to an annuity.

 

     (c) How fixed, variable, and indexed annuity contract

 

provisions affect consumers.

 

     (d) The application of income taxation of qualified and

 

nonqualified annuities.

 

     (e) The primary uses of annuities.

 

     (f) Appropriate sales practices and replacement and disclosure

 

requirements.

 

     (5) Registered insurance agent programs of study shall cover

 

all topics under subsection (4) and shall not present any marketing

 

information or provide training on sales techniques or provide

 

specific information about a particular insurer's products.

 

Additional topics may be offered in conjunction with and in

 

addition to the topics under subsection (4).

 

     (6) The satisfaction of the training requirements of another

 

state that are substantially similar to this section satisfies the

 

training requirements of this section.

 

     (7) An insurer shall verify that an insurance producer has

 

completed the annuity training course required under this section

 

before allowing the producer to sell an annuity product for that

 

insurer. An insurer may satisfy its responsibility under this

 

section by obtaining certificates of completion of the training

 

course or obtaining reports provided by commissioner-sponsored

 

database systems or vendors or from a reasonably reliable

 

commercial database vendor that has a reporting arrangement with a

 

registered insurance agent program of study.

 

     Sec. 4161. For a consumer purchasing an individual annuity,

 

the consumer shall be given a copy of the annuity policy at the

 

time the annuity is accepted and issued.

 

     Sec. 4162. Notwithstanding section 4073 and in addition to any

 

right to revoke an annuity, a consumer has the right to cancel an

 

annuity within 15 days after its delivery and to have the entire

 

premium refunded if, after examination of the annuity, the consumer

 

is not satisfied for any reason. An annuity shall have a notice

 

prominently printed on the first page of the policy and on the

 

summary of coverage and the consumer shall also be provided a

 

separate notice entitled "right to cancel". The notices shall state

 

in plain English that the consumer has the right to return the

 

annuity within 15 days after its delivery and to have the entire

 

premium refunded if, after examination of the policy, the applicant

 

is not satisfied for any reason and shall contain an address where

 

a notice of cancellation can be sent. The consumer shall

 

acknowledge in writing the receipt of the separate right to cancel

 

notice. Cancellation occurs when the consumer mails a written

 

notice of cancellation to the address stated in the notice of

 

cancellation.

 

     Sec. 4165. (1) An insurer or insurance producer that complies

 

with the national association of securities dealers rules "NASD

 

Manual, Conduct Rules section 2310 (CCH, 1966)" or rules at least

 

as stringent as section 2310 pertaining to suitability satisfies

 

this chapter's requirements for the recommendation of variable

 

annuities. Subject to subsection (2), a sale made in compliance

 

with financial industry regulatory authority requirements

 

pertaining to suitability and supervision of annuity transactions

 

that are not less stringent than this chapter satisfies this

 

chapter. This subsection applies to a financial industry regulatory

 

authority broker-dealer sale of a variable annuity or fixed annuity

 

if the suitability and supervision are similar to those applied to

 

variable annuity sales. However, this subsection does not limit the

 

commissioner's ability to enforce and investigate this chapter.

 

     (2) Subsection (1) applies if the insurer does both of the

 

following:

 

     (a) Monitors the financial industry regulatory authority

 

member broker-dealer using information collected in the normal

 

course of the insurer's business.

 

     (b) Provides to the financial industry regulatory authority

 

member broker-dealer information and reports that are reasonably

 

appropriate to assist the financial industry regulatory authority

 

member broker-dealer to maintain its supervision system.

 

CHAPTER 41B

 

ANNUITY DISCLOSURES

 

     Sec. 4175. As used in this chapter:

 

     (a) "Annuity" means a group or individual annuity contract or

 

certificate.

 

     (b) "Determinable elements" means elements that are derived

 

from processes or methods that are guaranteed at issue and not

 

subject to insurance company discretion, but where the values or

 

amounts cannot be determined until some point after issue. These

 

elements include the premiums, credited interest rates including

 

any bonus, benefits, values, non-interest-based credits, charges,

 

or elements of formulas used to determine any of these. These

 

elements may be described as guaranteed but not determined at

 

issue. An element is considered determinable if it was calculated

 

from underlying determinable elements only, or from both

 

determinable and guaranteed elements.

 

     (c) "Generic name" means a short title descriptive of the

 

annuity contract being applied for or illustrated.

 

     (d) "Guaranteed elements" means the premiums, credited

 

interest rates including any bonus, benefits, values, non-interest-

 

based credits, charges, or elements of formulas used to determine

 

any of these, that are guaranteed and determined at issue. An

 

element is considered guaranteed if all of the underlying elements

 

that go into its calculation are guaranteed.

 

     (e) "Insurance producer" or "producer" means insurance

 

producer as defined in section 1201 and includes a business entity

 

described in section 1205(2) that is licensed as an insurance

 

producer under this act.

 

     (f) "Nonguaranteed elements" means the premiums, credited

 

interest rates including any bonus, benefits, values, non-interest-

 

based credits, charges, or elements of formulas used to determine

 

any of these, that are subject to company discretion or are not

 

guaranteed at issue. An element is considered nonguaranteed if any

 

of the underlying nonguaranteed elements are used in its

 

calculation.

 

     (g) "Structured settlement annuity" means a qualified funding

 

asset as defined in section 130(d) of the internal revenue code of

 

1986, 26 USC 130, or an annuity that would be a qualified funding

 

asset under section 130(d) of the internal revenue code of 1986, 26

 

USC 130, but for the fact that it is not owned by an assignee under

 

a qualified assignment.

 

     Sec. 4177. (1) This chapter applies to all annuities except

 

the following:

 

     (a) Registered or nonregistered variable annuities or other

 

registered products.

 

     (b) Immediate and deferred annuities that contain no

 

nonguaranteed elements.

 

     (c) Annuities used to fund any of the following:

 

     (i) An employee pension or welfare benefit plan that is covered

 

by the employee retirement income security act of 1974, Public Law

 

93-406.

 

     (ii) A plan described by 26 USC 401(a), 26 USC 401(k), or 26

 

USC 403(b) if established or maintained by an employer.

 

     (iii) A governmental or church plan defined in 26 USC 414 or a

 

deferred compensation plan of a state or local government or tax-

 

exempt organization under 26 USC 457.

 

     (iv) A nonqualified deferred compensation arrangement

 

established or maintained by an employer or plan sponsor.

 

     (v) Structured settlement annuities.

 

     (2) Notwithstanding subsection (1), this chapter does apply to

 

annuities used to fund a plan or arrangement that is funded solely

 

by contributions an employee elects to make whether on a pretax or

 

after-tax basis, and where the insurer has been notified that plan

 

participants may choose from among 2 or more fixed annuity

 

providers and there is a direct solicitation of an individual

 

employee by an insurance producer for the purchase of an annuity

 

contract. As used in this subsection, direct solicitation does not

 

include any meeting held by an insurance producer solely for the

 

purpose of educating or enrolling employees in the plan or

 

arrangement.

 

     Sec. 4178. (1) If the application for an annuity contract is

 

taken in a face-to-face meeting, the applicant shall at or before

 

the time of application be given both the disclosure document

 

described in section 4179 and the buyer's guide described in

 

section 4181.

 

     (2) If the application for an annuity contract is taken by

 

means other than in a face-to-face meeting, the applicant shall be

 

sent both the disclosure document described in section 4179 and the

 

buyer's guide described in section 4181 by no later than 5 business

 

days after the completed application is received by the insurer,

 

subject to the following:

 

     (a) For an application received as a result of a direct

 

solicitation through the mail, both of the following apply:

 

     (i) Providing a buyer's guide in a mailing inviting prospective

 

applicants to apply for an annuity contract satisfies the

 

requirement that the buyer's guide be provided no later than 5

 

business days after receipt of the application.

 

     (ii) Providing a disclosure document in a mailing inviting a

 

prospective applicant to apply for an annuity contract satisfies

 

the requirement that the disclosure document be provided no later

 

than 5 business days after receipt of the application.

 

     (b) For an application received via the internet, both of the

 

following apply:

 

     (i) Taking reasonable steps to make the buyer's guide available

 

for viewing and printing on the insurer's website satisfies the

 

requirement that the buyer's guide be provided no later than 5

 

business days of receipt of the application.

 

     (ii) Taking reasonable steps to make the disclosure document

 

available for viewing and printing on the insurer's website

 

satisfies the requirement that the disclosure document be provided

 

no later than 5 business days after receipt of the application.

 

     (c) A solicitation for an annuity contract provided in other

 

than a face-to-face meeting shall include a statement that the

 

proposed applicant may contact the office of financial and

 

insurance regulation for a free annuity buyer's guide or may

 

include a statement that the prospective applicant may contact the

 

insurer for a free annuity buyer's guide.

 

     (3) If the buyer's guide and disclosure document are not

 

provided at or before the time of application, a free look period

 

of no less than 15 days shall be provided for the applicant to

 

return the annuity contract without penalty. This free look shall

 

run concurrently with any other free look provided under state law

 

or regulation.

 

     Sec. 4179. A disclosure document required to be provided under

 

section 4178 shall use terms defined in language that facilitates

 

the understanding by a typical person within the segment of the

 

public to which the disclosure document is directed and shall

 

contain all of the following information at a minimum:

 

     (a) The generic name of the contract, the company product

 

name, if different, and form number, and the fact that it is an

 

annuity.

 

     (b) The insurer's name and address.

 

     (c) A description of the contract and its benefits,

 

emphasizing its long-term nature, including examples if appropriate

 

of all of the following:

 

     (i) The guaranteed, nonguaranteed, and determinable elements of

 

the contract, and their limitations, if any, and an explanation of

 

how they operate.

 

     (ii) An explanation of the initial crediting rate, specifying

 

any bonus or introductory portion, the duration of the rate, and

 

the fact that rates may change from time to time and are not

 

guaranteed.

 

     (iii) Periodic income options both on a guaranteed and

 

nonguaranteed basis.

 

     (iv) Any value reductions caused by withdrawals from or

 

surrender of the contract.

 

     (v) How values in the contract can be accessed.

 

     (vi) The death benefit, if available, and how it will be

 

calculated.

 

     (vii) A summary of the federal tax status of the contract and

 

any penalties applicable on withdrawal of values from the contract.

 

     (viii) The impact of any rider, such as a long-term care rider.

 

     (d) Specific dollar amount or percentage charges and fees with

 

an explanation of how they apply.

 

     (e) Information about the current guaranteed rate for new

 

contracts that contains a clear notice that the rate is subject to

 

change.

 

     Sec. 4181. The commissioner shall prepare and, beginning

 

January 1, 2012 and annually thereafter, shall publish a buyer's

 

guide to annuities as provided in this section. The buyer's guide

 

to annuities shall be written in plain English and shall contain an

 

explanation of all of the following:

 

     (a) What an annuity is.

 

     (b) The different kinds of annuities.

 

     (c) How interest rates are set.

 

     (d) Charges that may be subtracted from an annuity.

 

     (e) Tax treatment of annuities.

 

     (f) How to determine whether an annuity is a right choice.

 

     Sec. 4182. For annuities in the payout period with changes in

 

nonguaranteed elements and for the accumulation period of a

 

deferred annuity, the insurer shall provide each contract owner

 

with a report, at least annually, on the status of the contract

 

that contains at least all of the following information:

 

     (a) The beginning and end date of the current report period.

 

     (b) The accumulation and cash surrender value, if any, at the

 

end of the previous report period and at the end of the current

 

report period.

 

     (c) The total amounts, if any, that have been credited,

 

charged to the contract value, or paid during the current report

 

period.

 

     (d) The amount of outstanding loans, if any, as of the end of

 

the current report period.

 

     Enacting section 1. Section 4157 of the insurance code of

 

1956, 1956 PA 218, MCL 500.4157, is repealed.

 

     Enacting section 2. This amendatory act takes effect 9 months

 

after the date it is enacted into law.