Michigan Laws 500.1285 – Payment of premium tax on travel insurance premiums; travel insurer duties
Current as of: 2024 | Check for updates
|
Other versions
Terms Used In Michigan Laws 500.1285
- Blanket travel insurance: means a policy of travel insurance issued to any eligible group providing coverage for specific classes of persons defined in the policy with coverage provided to all members of the eligible group without a separate charge to individual members of the eligible group. See Michigan Laws 500.1283
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Group travel insurance: means travel insurance issued to any eligible group. See Michigan Laws 500.1283
- Insurer: means an individual, corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyds organization, fraternal benefit society, or other legal entity, engaged or attempting to engage in the business of making insurance or surety contracts. See Michigan Laws 500.106
- Primary certificate holder: means an individual who elects and purchases travel insurance under a group policy. See Michigan Laws 500.1283
- Primary policyholder: means an individual who elects and purchases individual travel insurance. See Michigan Laws 500.1283
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Travel assistance services: means noninsurance services for which the consumer is not indemnified based on a fortuitous event, and as to which providing the service does not result in the transfer or shifting of risk that would constitute the business of insurance. See Michigan Laws 500.1283
- Travel insurance: means that term as defined in section 1202. See Michigan Laws 500.1283
(1) A travel insurer shall pay a premium tax, as provided in section 635 of the income tax act of 1967, 1967 PA 281, MCL 206.635, on travel insurance premiums paid by any of the following:
(a) An individual primary policyholder who is a resident of this state.
(b) A primary certificate holder who is a resident of this state who elects coverage under a group travel insurance policy.
(c) A blanket travel insurance policyholder that is a resident in, or has its principal place of business or the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance in, this state for eligible blanket group members, subject to any apportionment rules that apply to the insurer across multiple taxing jurisdictions or that permits the insurer to allocate premium on an apportioned basis in a reasonable and equitable manner in those jurisdictions.
(2) A travel insurer shall do both of the following:
(a) Document the state of residence or principal place of business of the policyholder or certificate holder, as required in subsection (1).
(b) Report as premium only the amount allocable to travel insurance and not any amounts received for travel assistance services or cancellation fee waivers.