State RegulationsMI specificDifficulty 1/5
A Michigan accident and health policyholder mails a reinstatement application with a conditional receipt, and the insurer takes no action on the application. Under Michigan law, when does the reinstated coverage take effect?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.3411 provides that an accident and health policy is reinstated upon the insurer's approval or, if the insurer does not act, on the 45th day after the conditional receipt is mailed — whichever comes first. The applicant's coverage is protected by this automatic reinstatement even when the insurer stays silent.
Why the other options are wrong
- A: The statutory automatic reinstatement on the 45th day defeats insurer inaction.
- C: 60 days is the limit on how far reinstatement premiums can reach back, not the reinstatement trigger.
- D: 15 days is the claim-form delivery period, not a reinstatement deadline.
Memory hook
Approve or 45 — whichever lands first.