State RegulationsMI specificDifficulty 1/5
An individual accident and health policy in Michigan is paid for with weekly premiums. What grace period must the insurer allow before the policy lapses for nonpayment?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.3410 sets the accident and health grace period by premium mode: 7 days for weekly premiums, 10 days for monthly premiums, and 31 days for all other modes. A weekly-mode policy therefore gets a 7-day grace period before lapse for nonpayment.
Why the other options are wrong
- A: 31 days is the grace period for modes other than weekly and monthly, not for weekly premiums.
- B: 10 days is the monthly-mode grace period, one step up from weekly.
- D: 1 month is the individual life policy grace period, not the accident and health weekly figure.
Memory hook
Weekly waits a week — 7 days to catch up.