January 27, 2005, Introduced by Rep. Vagnozzi and referred to the Committee on Insurance.
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2210 (MCL 500.2210), as amended by 1998 PA 222.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2210. (1) As used in this section:
(a) "Employee benefit plan" means that term as defined by the
employee
retirement income security act of 1974, Public Law 93-
406,
88 Stat. 829 29 USC 1001 to 1461.
(b) "Employer" means an individual, sole proprietorship,
partnership, firm, corporation, association, or any other legal
entity
, which that has 1 or more employees and is legally doing
business in this state.
(c) "Trust" means a trust established by an employer.
(2) Notwithstanding any other section of this act, an employer
or a trust has an insurable interest in, and may, with the written
consent of the insured, insure on an individual or group basis for
its benefit the lives of the employer's directors, officers, or
managers. ,
nonmanagement employees, and retired employees. An
employer
or a trust may shall not insure the lives of the
employer's
nonmanagement employees and its retired employees. only
if
those persons give written consent to be insured and the
coverage
is limited to an amount reasonably commensurate with the
employer's
projected unfunded liabilities to nonmanagement and
retired
employees for employee benefit plans, calculated according
to
accepted actuarial principles. An
employer shall not retaliate
in
any manner against an employee or a retired employee for
refusing consent to be insured.
(3) Notwithstanding any other section of this act, a trust
maintained for the purpose of providing for the cost of benefits
under an employee benefit plan maintained for employees or retired
employees has an insurable interest in, and may, with the
acquiescence of the insured, insure on an individual or group basis
for its benefit the lives of the employer's directors, officers, or
managers. ,
nonmanagement employees, and retired employees. A
trust
may shall not insure the life of a nonmanagement employee
and
or a retired employee. only
if that person is given written
notice
of the coverage, he or she has not notified either the
employer
or the trust in writing that he or she does not want to be
insured
for the coverage, and the coverage is limited to an amount
reasonably
commensurate with the employer's projected unfunded
liabilities
to nonmanagement and retired employees for employee
benefit
plans, calculated according to accepted actuarial
principles.
An employer or a trust shall not
retaliate in any
manner
against an employee or a retired employee for providing
the written notice that he or she does not want to be insured for
the coverage.
(4) The proceeds of any policy or certificate issued pursuant
to subsection (2) or (3) are exempt from the claims of any creditor
or dependent of the insured.