State RegulationsMI specificDifficulty 2/5
An insured in Ann Arbor is entitled to periodic disability benefits under a Michigan accident and health policy. Once due proof of loss is on file, how often must the insurer pay the periodic benefits?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.3416 requires the insurer to pay benefits immediately upon receipt of due proof of loss, and periodic indemnity benefits must be payable not less often than monthly. The monthly rhythm mirrors a paycheck, which is the core purpose of disability income coverage.
Why the other options are wrong
- B: Quarterly payment would fall below the statutory minimum frequency of monthly.
- C: Periodic benefits must be paid periodically as they accrue, not deferred into one lump sum.
- D: Every 6 months is the continuation-notice interval for long claims, not the payment frequency.
Memory hook
Disability pays like a paycheck — at least monthly.