MI HB5149

Amends the Michigan Insurance Code to define and regulate accelerated benefits under life insurance policies, which allow policyholders to receive portions of death benefits during their lifetime upon specified medical conditions.

Establishes that accelerated benefit riders and policies are classified as mortality risks (life insurance) rather than morbidity risks and must be marketed as accelerated benefits, not as long-term care insurance.

Defines chronic illness as a permanent medical condition preventing basic physical activities like eating, toileting, or bathing, or involving severe cognitive impairment or dementia.

Requires insurers to provide disclosure statements to applicants about potential tax implications and effects on policy cash value, death benefits, and government benefits eligibility before acceleration occurs.

Sets requirements for insurer payments including present value calculations using interest rates no greater than 90-day treasury bill yields or statutory policy loan rates, and requires qualified actuaries to maintain documentation of benefit calculations and reserves.