State RegulationsMI specificDifficulty 1/5
The optional provision titled other insurance in this insurer, authorized by M.C.L. 500.3436, is designed to limit what in a Michigan individual disability policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.3436 authorizes the other insurance in this insurer optional provision, which caps the total amount the insurer must pay across all of an insured's disability policies issued by that one insurer. Its purpose is to prevent overinsurance within a single company: if one insured stacks multiple disability policies with the same carrier, the provision limits the aggregate payable so the combined benefits do not exceed what the insurer's provisions allow for the loss.
Why the other options are wrong
- A) Dependent eligibility is a coverage-mandate matter, not the subject of the other insurance in this insurer provision under M.C.L. 500.3436.
- B) Time limits on proof of loss are separate claim-submission rules and are untouched by this provision.
- C) Occupational underwriting standards are set in underwriting, not by this overinsurance-limiting provision.
Memory hook
Same insurer, stacked policies: the carrier caps its own total payout.