Bill Text: MI HB4810 | 2023-2024 | 102nd Legislature | Introduced
Bill Title: Insurance: other; certain references in the insurance code; make gender neutral. Amends secs. 2207, 2209, 3110 & 3402 of 1956 PA 218 (MCL 500.2207 et seq.). TIE BAR WITH: HJR F'23
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2023-06-20 - Bill Electronically Reproduced 06/15/2023 [HB4810 Detail]
Download: Michigan-2023-HB4810-Introduced.html
HOUSE BILL NO. 4810
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending sections 2207, 2209, 3110, and 3402 (MCL 500.2207, 500.2209, 500.3110, and 500.3402), section 3402 as amended by 2016 PA 276.
the people of the state of michigan enact:
Sec. 2207. (1) It shall be lawful for any husband to insure his life for the benefit of his wife, and for any father to insure his life for the benefit of his children, or of any one or more of them; and in case that any money shall become payable under the insurance, the same shall be payable to the person or persons for whose benefit the insurance was procured, his, her or their representatives or assigns, for his, her or their own use and benefit, free from all claims of the representatives of such husband or father, or of any of his creditors; and any married woman, either in her own name or in the name of any third person as her trustee, may cause to be insured the life of her husband, or of any other person, for any definite period, or for the term of life, and the moneys that may become payable on the contract of insurance, shall be payable to her, her representatives or assigns, free from the claims of the representatives of the husband, or of such other person insured, or of any of his creditors; and in any contract of insurance, it shall be lawful to provide that on the decease of the person or persons for whose benefit it is obtained, before the sum insured shall become payable, the benefit thereof shall accrue to any other person or persons designated; and such other person or persons shall, on the happening of such contingency, succeed to all the rights and benefits of the deceased beneficiary or beneficiaries of the policy of insurance, notwithstanding he, she or they may not at the time have any such insurable interest as would have enabled him, her or them to obtain a new insurance; and the proceeds of any policy of life or endowment insurance, which is payable to the wife, husband or children of the insured or to a trustee for the benefit of the wife, husband or children of the insured, including the cash value thereof, shall be exempt from execution or liability to any creditor of the insured; and said exemption shall apply to insurance heretofore or hereafter issued; and shall apply to insurance payable to the above enumerated persons or classes of persons, whether they shall have become entitled thereto as originally designated beneficiaries, by beneficiary designation subsequent to the issuance of the policy, or by assignment (except in case of transfer with intent to defraud creditors).
(2) If a policy of insurance, or contract of annuity (whether heretofore or hereafter issued) is effected by any person on his own life or on another life in favor of a person other than himself, or (except in cases of transfer with intent to defraud creditors) if a policy of life insurance is assigned or in any way made payable to any such person, the lawful beneficiary or assignee thereof (other than the insured or the person so effecting such insurance, or his executors or administrators) shall be entitled to the proceeds and avails (including the cash value thereof) against the creditors and representatives of the insured and of the person effecting the same, (whether or not the right to change the beneficiary is reserved or permitted and whether or not the policy is made payable in the event that the beneficiary or assignee shall predecease such person, to the person whose life is insured or the person effecting the insurance): Provided, That, subject to the statute of limitations, the amount of any premiums for said insurance paid with intent to defraud creditors, with interest thereon, shall inure to their benefit from the proceeds of the policy: Provided further, That proof that such transfer was made and a particular debt or claim existed at the time of such transfer shall be prima facie evidence of intent to defraud said creditor as to said debt or claim; but the company issuing the policy shall be discharged of all liability thereon by payment of its proceeds in accordance with its terms, unless before such payment the company shall have written notice at its home office, by or in behalf of a creditor of a claim to recover for transfer made or premiums paid with intent to defraud creditors, with specification of the amount claimed.
(1) An individual may insure his or her life or the life of another person in whom he or she has an insurable interest under this act or at common law.
(2) The proceeds of any life insurance policy that are payable or paid to the spouse or descendants of the insured, or to a trustee for the benefit of the spouse or descendants of the insured, including the policy's cash value, are exempt from execution by or claims of the insured, the insured's estate, the insured's creditors, and the creditors of the insured's estate.
(3) If an individual affects a life insurance policy on his or her life or on the life of another person in whom he or she has an insurable interest, or if the individual assigns or transfers the policy, the lawful beneficiary, assignee, or transferee of the policy, other than the insured, the individual affecting the policy, and any of their estates, is entitled to the proceeds and cash value of the policy against the insured, the individual effecting the policy, their estates and creditors, and the creditors of their estates, regardless of whether the right to change the beneficiary is reserved or permitted or whether the insured or the individual effecting the policy are contingent beneficiaries. However, if any policy premiums are paid with intent to defraud creditors, or if the policy is assigned or transferred with intent to defraud creditors, premiums, including interest on the premiums, paid with intent to defraud creditors, with interest thereon, must inure to the creditors' benefit from the proceeds of the policy, subject to the statute of limitations, and proof that a particular debt or claim existed at the time of any assignment or transfer is prima facie evidence of intent to defraud the creditor as to the debt or claim, subject to the statute of limitations. A company issuing the policy is discharged of all liability on the policy by payment of its proceeds in accordance with its terms, unless before the payment the company has written notice at its home office, by or on behalf of a creditor, of a claim to recover for an assignment or transfer made, or premiums paid, with intent to defraud creditors, and the amount claimed is specified.
Sec. 2209. (1) It shall be lawful for any A married woman individual may, by herself, his or her self and in his or her name or in the name of any third person, with his the individual's spouse's assent, as her the individual's trustee, to cause to be insured insure for her the individual's sole use, the life of her husband the individual's spouse or the life of any other person, in any a life insurance company of any nature whatever, located in either of the states of the United States of America or in Great Britain, for any definite period, or for the term of his the individual's spouse's natural life. ; and in case of her surviving If a married individual described in this subsection survives his or her husband, spouse or such other person insured in his or her behalf, the sum or net amount of the policy of insurance due and payable by the terms of the insurance, shall policy must be payable to her, the individual, to and for her the individual's own use, free from the claims of the representatives of her husband, the individual's spouse, or of such the other person insured, or of any of his the individual's spouse's creditors. , but such However, the exemption shall does not apply where if the amount of premium annually paid shall exceed the sum of exceeds $300.00.
(2) In case of the death of the wife If a married individual dies before the decease of her husband, the individual's spouse or of such other person insured, the amount of the insurance proceeds may be made payable after her the individual's death to her the individual's children who are less than 18 years of age, for their use, and to their guardian, if under age, or the amount of the policy may be disposed of by such the married woman by a last will and testament.individual's will.
Sec. 3110. (1) The following persons are conclusively presumed to be dependents of a deceased person:individual.
(a) A wife is dependent on a husband spouse with whom she lives at the time of his the spouse's death.
(b) A husband is dependent on a wife spouse with whom he lives at the time of her the spouse's death.
(c) A child while under the age of until the child is 18 years of age, or over that age but physically or mentally incapacitated from earning, is dependent on the parent with whom he or she lives or from whom he or she receives support regularly at the time of the death of the parent.
(2) In all other cases, questions of dependency and the extent of dependency shall must be determined in accordance with the facts as they exist at the time of death.
(3) The dependency of a surviving spouse terminates upon on death or remarriage. The dependency of any other person individual terminates upon on the death of the person individual and continues only so long as while the person individual is under the age of less than 18 years of age, physically or mentally incapacitated from earning, or engaged full time in a formal program of academic or vocational education or training.
(4) Personal protection insurance benefits payable for accidental bodily injury accrue not when the injury occurs but as the allowable expense, work loss or survivors' loss is incurred.
Sec. 3402. An insurer shall not deliver or issue for delivery in this state a disability insurance policy for an individual or family unless all of the following requirements are met:
(a) The entire money and other considerations for the policy are expressed in the policy.
(b) The time at which the insurance takes effect and terminates is expressed in the policy.
(c) The policy purports to insure only 1 individual, except that a policy may insure, originally or by subsequent amendment, upon on the application of an adult member of a family who is considered to be the policyholder, any 2 or more eligible members of that family, including husband, wife, spouses, dependent children, any children under a specified age, and any other individual dependent upon on the policyholder, if coverage is made available to any dependent child at least until the child turns 26 years of age for a health insurance policy or 19 years of age for a policy of disability insurance, a policy providing pediatric dental benefits, or a policy providing pediatric vision benefits.
Enacting section 1. This amendatory act does not take effect unless Senate Joint Resolution ____ or House Joint Resolution F (request no. 00367'23) of the 102nd Legislature becomes a part of the state constitution of 1963 as provided in section 1 of article XII of the state constitution of 1963.
