Michigan Laws 550.521 – Definitions
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As used in this act:
(a) “Commissioner” means the commissioner of insurance.
Terms Used In Michigan Laws 550.521
- Bequest: Property gifted by will.
- Commissioner: means the commissioner of insurance. See Michigan Laws 550.521
- Contract: A legal written agreement that becomes binding when signed.
- contract: means a written agreement entered into between a provider and a viator in which the provider will pay consideration that is less than the expected death benefit of the viator's policy in return for the viator's assignment, transfer, sale, devise, or bequest of the death benefit or ownership of the policy to the provider. See Michigan Laws 550.521
- Devise: To gift property by will.
- Life insurance: means that term as defined in section 602 of the insurance code of 1956, Act No. See Michigan Laws 550.521
- person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
- Policy: means an individual life insurance policy or a certificate under a group life insurance policy. See Michigan Laws 550.521
- Provider: means a person who enters into a viatical settlement contract with a viator. See Michigan Laws 550.521
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- 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
- Viator: means the owner or holder of a policy who has a terminal illness or condition and who enters into a viatical settlement contract. See Michigan Laws 550.521
(b) “Life insurance” means that term as defined in section 602 of the insurance code of 1956, Act No. 218 of the Public Acts of 1956, being section 500.602 of the Michigan Compiled Laws.
(c) “Physician” means a person licensed in this or another state to practice medicine or osteopathic medicine.
(d) “Policy” means an individual life insurance policy or a certificate under a group life insurance policy.
(e) “Provider” means a person who enters into a viatical settlement contract with a viator. Provider does not mean any of the following:
(i) A financial lending institution that takes a policy as collateral for a loan.
(ii) The issuer of a policy providing accelerated benefits under section 602 of Act No. 218 of the Public Acts of 1956.
(iii) An individual who enters into no more than 1 viatical settlement contract in a calendar year for the transfer of a policy for any value less than the expected death benefit.
(f) “Viatical settlement contract” or “contract” means a written agreement entered into between a provider and a viator in which the provider will pay consideration that is less than the expected death benefit of the viator’s policy in return for the viator’s assignment, transfer, sale, devise, or bequest of the death benefit or ownership of the policy to the provider.
(g) “Viator” means the owner or holder of a policy who has a terminal illness or condition and who enters into a viatical settlement contract.