Section R. 500.1285 - Insurance plan with separate rates for smokers and nonsmokers; selection of method to determine issues of planRule 5.
(1) For each plan of insurance with separate rates for smokers and nonsmokers an insurer may select 1 of the following methods to apply to such plan: (a) Use composite mortality tables to determine minimum reserve liabilities, minimum cash surrender values, and amounts of paid-up nonforfeiture benefits.(b) Use smoker and nonsmoker mortality tables to determine the valuation net premiums and additional minimum reserves, if any, required by section 834(6) of Act No. 218 of the Public Acts of 1956, as amended, being S500.834(6) of the Michigan Compiled Laws, and use composite mortality tables to determine the basic minimum reserves, minimum cash surrender values, and amounts of paid-up nonforfeiture benefits.(c) Use smoker and nonsmoker mortality tables to determine minimum reserve liabilities, minimum cash surrender values, and amounts of paid-up nonforfeiture benefits.(2) Once an insurer has selected 1 of the methods specified in subrule (1) of this rule to apply with respect to a particular plan of insurance, such method shall not be changed without the prior approval of the commissioner.Mich. Admin. Code R. 500.1285