MI HB5192

Allows insurers to use the 2001 CSO preferred class structure mortality table instead of standard mortality tables for life insurance policies issued after June 30, 2004, subject to director approval and specific conditions.

Requires insurers using preferred class structure tables to demonstrate that at least 20% of business valued on the table is in one or more preferred classes before making the election.

Mandates appointed actuaries certify annually that death benefit present values using preferred class tables are less than those using standard valuation tables for both 10-year and lifetime contract periods.

Requires insurers using preferred class structure tables to file annual statistical reports with the director, NAIC, or NAIC-designated statistical agent showing mortality and other relevant information.

Prohibits use of preferred class structure tables for coinsured policies unless reserve credits comply with specified limits based on reinsurance premium payment frequency relative to policy premium frequency.