State RegulationsMI specificDifficulty 2/5
An insurer is drafting a new individual accident and health policy for a Michigan client and asks how the change-of-occupation provision is classified. Under Michigan law, the change-of-occupation provision is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.3432 is listed among the optional provisions Michigan law makes available for accident and health policies. The insurer may include it in an individual policy, and when present it adjusts the insurer's liability when the insured changes occupations, but Michigan does not require it in every policy.
Why the other options are wrong
- A: The provision is optional, not one of the uniform provisions Michigan mandates in every policy.
- B: Michigan law expressly recognizes the change-of-occupation provision as an available optional provision, so it is not prohibited.
- C: The provision is available for individual policies; nothing confines it to group coverage.
Memory hook
Change of occupation is a menu item, not a required course.