State RegulationsMI specificDifficulty 2/5
In Ann Arbor, a producer applies for a $100,000 life policy on a neighbor's life, naming himself as beneficiary. The neighbor verbally agrees but does not sign the application. Under M.C.L. 500.2211, what is the result?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.2211 requires the written consent of the insured for policies of $10,000 or more taken out for the applicant's own benefit, and the insured's signature on the application constitutes that consent. A verbal promise is not written consent, so the application cannot properly support the policy. Practically, the producer must go back and obtain the neighbor's signature before the coverage can be validly issued for the producer's benefit.
Why the other options are wrong
- A) The statute demands written consent; verbal agreement does not satisfy M.C.L. 500.2211 regardless of the insured's age being adult.
- B) Insurable interest under M.C.L. 500.2207 is a separate concept and does not substitute for the written-consent requirement.
- C) Michigan law has no Insurance Director pre-approval step for insured consent; consent is documented by the insured's signature on the application.
Memory hook
Talk is cheap: the insured's pen, not the producer's promise, satisfies M.C.L. 500.2211.