Section 500.733 - Maximum interest rates.
THE INSURANCE CODE OF 1956 (EXCERPT)
Act 218 of 1956
500.733 Maximum interest rates.
Sec. 733.
(1) The maximum interest rate for contract reserves is the calendar year statutory valuation interest rate for life insurance specified in section 836 as of the date of issuance of the health insurance policy or certificate.
(2) The maximum interest rate for claim reserves on policies requiring contract reserves is the calendar year statutory valuation interest rate for life insurance specified in section 836 as of the date the claim is incurred.
(3) The maximum interest rate for claim reserves on policies not requiring contract reserves is the calendar year statutory valuation interest rate for single premium immediate annuities specified in section 836 as of the date the claim is incurred, reduced by 100 basis points.
History: Add. 1994, Act 148, Imd. Eff. June 7, 1994
Popular Name: Act 218