500.3821 Issuance of policy to person not enrolled in medicare parts A and B prohibited; refund; interest.
176 words·~1 min read·
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500.3821 Issuance of policy to person not enrolled in medicare parts A and B prohibited; refund; interest.
Sec. 3821.
(1)An insurer shall not issue an individual medicare supplement policy to a person who has not applied for or enrolled in medicare, parts A and B. If it is later determined that a person has not applied for or enrolled in medicare, parts A and B, an insurer shall refund all premiums received from the person for a medicare supplement policy issued to the person plus interest less the amount of any benefits received by the person under the policy.
(2)Interest under subsection
(1)shall be calculated at 6-month intervals from the date the first premium payment was received at a rate of interest equal to 1% plus the average interest rate paid at auctions of 5-year United States treasury notes during the 6 months immediately preceding July 1 and January 1, as certified by the state treasurer, and compounded annually.
History: Add. 1992, Act 84, Imd. Eff. June 2, 1992
Popular Name: Act 218