Section R. 500.821 - DefinitionsRule 1. As used in these rules:
(a) "Annual aggregate retention amount or attachment point" for any 1 policy year, or fraction thereof if the policy terminates during the policy year, means the cumulative total of the number of covered units each month for which premium has been accepted, multiplied by such covered units' corresponding monthly aggregate retention amount factor, applied each month, or the minimum annual aggregate retention amount, whichever is greater.(b) "Code" means Act No. 218 of the Public Acts of 1956, as amended, being S500.100 et seq. of the Michigan Compiled Laws.(c) "Plan" means an employee benefit plan of a multiple employer welfare arrangement authorized under chapter 70 of the code. Reference to actions of a plan includes actions by the plan's designated agents.(d) "Policy" is the excess insurance policy issued by the insurer to the MEWA which indemnifies the MEWA for losses incurred under a plan in excess of a specified retention amount.(e) "Policyholder" means the covered entity to which the policy is issued.(f) "Policy year" means a 12-consecutive-month period, or fraction thereof, beginning on the effective date of the policy and ending on the expiration date of the policy.(g) "Specific retention amount" means the uninsured deductible amount or specific attachment point specified in the policy; that is, the amount of risk retained by the contract holder per covered individual in excess of which coverage applies.Mich. Admin. Code R. 500.821