Bill Text: MI HB5150 | 2013-2014 | 97th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Insurance; life; electronic applications; allow, and clarify procedure of surrendering of annuity during review period. Amends secs. 4016 & 4073 of 1956 PA 218 (MCL 500.4016 & 500.4073).

Spectrum: Bipartisan Bill

Status: (Passed) 2014-06-04 - Assigned Pa 143'14 [HB5150 Detail]

Download: Michigan-2013-HB5150-Engrossed.html

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HB-5150, As Passed Senate, May 20, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5150

 

November 13, 2013, Introduced by Reps. Glardon, Leonard, Goike, Hovey-Wright, Segal and Cochran and referred to the Committee on Insurance.

 

     A bill to amend 1956 PA 218, entitled

 

"The insurance code of 1956,"

 

by amending sections 4016 and 4073 (MCL 500.4016 and 500.4073),

 

section 4073 as added by 1980 PA 58.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4016. (1) There shall be a Each life insurance policy

 

shall contain a provision that all statements made by the insured,

 

shall, in the absence of fraud, be deemed considered

 

representations and not warranties. , and that no such The

 

statement shall not avoid the policy unless it the statement is

 

contained in a written application and a copy of such the

 

application shall must be endorsed upon or attached to the policy

 

when issued.

 

     (2) An application obtained through electronic means is an

 

application under subsection (1). The information contained in that

 

application must be endorsed upon or attached to the policy.

 

     Sec. 4073. (1) An Subject to subsection (2), an annuity

 

contract shall not be delivered or issued for delivery in this

 

state unless the contract contains on the front page a notice, in

 

substance printed or stamped made as a permanent part of the

 

policy, that during a period of not less than 10 days after the

 

date the policyholder receives the policy, the policyholder may

 

cancel the policy and receive from the insurer a prompt refund of

 

any premium paid for the policy, including a policy fee or other

 

charge, by mailing or otherwise surrendering the policy to the

 

insurer together with a written request for cancellation. If a

 

policyholder or purchaser pursuant to such the notice, returns the

 

policy or contract to the company or association at its home or

 

branch office or to the agent through whom it was purchased, it

 

shall be is void from the beginning and the parties shall be are in

 

the same position as if no policy or contract had been issued.

 

     (2) For a variable annuity contract, the refund under

 

subsection (1) shall equal the sum of the following:

 

     (a) The difference between the premiums paid, including any

 

policy or contract fees or other charges, and the amounts allocated

 

to any separate accounts under the policy or contract.

 

     (b) The value of the amounts allocated to any separate

 

accounts under the policy or contract on the date the returned

 

policy is received by the insurer or its insurance producer.

 

     (3) (2) This section shall does not apply to policies or

 

contracts issued to an employee in connection with the funding of a

 

pension, annuity or profit-sharing plan, qualified or exempt under

 

section 401, 403, 404, or 501 of the United States internal revenue

 

code of 1954 1986, 26 USC 401, 403, 404, and 501 if participation

 

in the plan is a condition of employment.