REQUIREMENTS FOR INTEREST INDEXED LIFE INSURANCE
House Bill 6492
Sponsor: Rep. Joanne Voorhees
Committee: Insurance and Financial Services
Complete to 11-8-02
A SUMMARY OF HOUSE BILL 6492 AS INTRODUCED 11-7-02
Under the Insurance Code, certain information is required to be maintained on file by an insurer for all interest-indexed universal life insurance policies. ("Interest-indexed" life insurance is a type of universal life insurance in which interest credits are linked to an external referent.) The bill would amend the code to also require an insurer to maintain the specified information for all interest indexed annuity contracts. The required information includes:
· a description of how interest credits are determined;
· the insurer's investment policy;
· if a policy is linked to an index for a specified period less than the maturity date of the policy, a description of the method used to determine interest credits upon the expiration of the period;
· a description of any interest guarantee in addition to or in lieu of the index; and,
· a description of any maximum premium limitations.
MCL 500.2236a
_____________________________________________________________________________________________________________________
This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.