The bill amends the Michigan Insurance Code of 1956 by updating several sections related to life and disability insurance policies. Key changes include the removal of gender-specific language, allowing any individual to insure their life or the life of another person in whom they have an insurable interest. The bill also clarifies that the proceeds of life insurance policies payable to a spouse or descendants are exempt from claims by creditors, ensuring that these funds remain protected for the beneficiaries. Additionally, it establishes that if premiums are paid with the intent to defraud creditors, those amounts must benefit the creditors from the policy's proceeds.

Further amendments include the definition of dependents, which now encompasses spouses and children, and the conditions under which dependency is determined. The bill also specifies that disability insurance policies must clearly outline the terms of coverage, including the insured individuals and the duration of the policy. Overall, the proposed changes aim to modernize the language and provisions of the insurance code, making it more inclusive and protective of beneficiaries' rights.

Statutes affected:
House Introduced Bill: 500.2207