Section R. 500.852 - Variable life insurance policy; suicide exclusion; incidental insurance benefits on fixed basis; dividends; election of automatic premium loanRule 12. Any of the following provisions may in substance be included in a variable life insurance policy or related form delivered or issued for delivery in this state:
(a) An exclusion for suicide committed within 2 years of the policy issue date. However, to the extent of the increased death benefits only, the policy may provide an exclusion for suicide within 2 years of any increase in death benefits which result from an application of the owner subsequent to the policy issue date.(b) Incidental insurance benefits may be offered on a fixed basis or variable basis.(c) Policies issued on a participating basis shall offer to pay dividend amounts in cash. In addition, such policies may offer the following dividend options:(i) The amount of the dividend may be credited against premium payments.(ii) The amount of the dividend may be applied to provide amounts of additional fixed benefit life insurance.(iii) The amount of the dividend may be applied to provide amounts of additional variable life insurance.(iv) The amount of the dividend may be deposited in the general account at a specified minimum rate of interest.(v) The amount of the dividend may be applied to provide paid-up amounts of fixed-benefit, 1-year term insurance.(vi) The amount of the dividend may be deposited as a variable deposit in a separate account.(d) A provision allowing the policyholder to elect, in writing, in the application for the policy or thereafter, an automatic premium loan on a basis not less favorable than that required of policy loans under R 500.851, except that a restriction that not more than 2 consecutive premiums shall be paid under this provision may be imposed.(e) A provision allowing the policyholder to make partial withdrawals.(f) Any other policy provision approved in writing by the commissioner.Mich. Admin. Code R. 500.852