SB-0236,As Passed House,Jun 5, 2003

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 236

                                                                             A bill to amend 1980 PA 350, entitled                                             

"The nonprofit health care corporation reform act,"                         

(MCL 550.1101 to 550.1704) by adding sections 420a, 422a, and               

422b.                                                                       

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1   Sec. 420a.  If a health care corporation offers long-term                   

2   care coverage in this state, the sale of that coverage is not               

3   exempt from taxation by this state or any political subdivision             

4   of this state.

5   Sec. 422a.  A health care corporation may use an application                

6   form for long-term care coverage that is designed to elicit the             

7   complete health history of an applicant.

8   Sec. 422b.  A health care corporation may charge a different                

9   rate based on age for the same long-term care coverage if the               

10  rate differential is based on sound actuarial principles and a              

1   reasonable classification system and is related to actual and               

2   credible loss statistics or, for new coverages, is related to               

3   reasonably anticipated experience.

4       Enacting section 1.  This amendatory act does not take                      

5   effect unless Senate Bill No. 234 of the 92nd Legislature is                

6   enacted into law.