Michigan § 500.3927 - Reasonableness of benefits relative to premiums; expected loss ratio; evaluation of factors; applicability of section.
Full text of Michigan Michigan Compiled Laws § 500.3927 — Reasonableness of benefits relative to premiums; expected loss ratio; evaluation of factors; applicability of section., with citation guidance and answers to common questions.
§ 500.3927. Reasonableness of benefits relative to premiums; expected loss ratio; evaluation of factors; applicability of section.
(1) Benefits under individual long-term care insurance policies shall be considered reasonable in relation to premiums provided the expected loss ratio is at least 60%, calculated in a manner that provides for adequate reserving of the long-term care insurance risk. In evaluating the expected loss ratio, due consideration shall be given to all relevant factors, including:
(a) Statistical credibility of incurred claims experience and earned premiums.
(b) The period for which rates are computed to provide coverage.
(c) Experienced and projected trends.
(d) Concentration of experience within early policy duration.
(e) Expected claim fluctuation.
(f) Experience refunds, adjustments, or dividends.
(g) Renewability features.
(h) All appropriate expense factors.
(i) Interest.
(j) Experimental nature of the coverage.
(k) Policy reserves.
(
(m) Product features such as long elimination periods, high deductibles, and high maximum limits.
(n) Premiums charged and losses incurred for other similar policies.
(2) This section does not apply to fixed indivisible premium life insurance policies that fund long-term care benefits entirely by accelerating the death benefit.
(3) This section applies to all long-term care insurance policies or certificates except those described in sections 3926(1) and 3926a(1) and (2).
Source: official Michigan text · Last verified 2026-08-27
Frequently Asked Questions About Michigan § 500.3927
What does Michigan Compiled Laws § 500.3927 cover?
Section 500.3927 ("Reasonableness of benefits relative to premiums; expected loss ratio; evaluation of factors; applicability of section.") is part of the Michigan Compiled Laws, the codified statutory law of Michigan. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Michigan § 500.3927?
A common citation format is "Michigan Compiled Laws § 500.3927" (Michigan). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Michigan law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Michigan official source linked on this page or consult a licensed Michigan attorney.
How does Michigan § 500.3927 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Michigan can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Michigan.