L&HMIhard
Under MCL 500.835-500.836a, what reserving framework applies to most new individual life policies issued in Michigan after the 2017 operative date?
AFormulaic CRVM net level premium reserves using the 1980 CSO mortality table
BStatutory minimum reserves equal to cash surrender value
CTax reserves under IRC § 807 with no statutory minimum
Principle-based reserving (PBR) using the Valuation Manual
Why this is the answer
MCL 500.835-500.836a was updated to incorporate the NAIC Valuation Manual, requiring principle-based reserving (PBR) for most new individual life policies issued in Michigan from the 2017 operative date forward, rather than the older formulaic CRVM approach.
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