State RegulationsMI specificDifficulty 2/5
A former employee in Kalamazoo exercises the group life conversion right. Under M.C.L. 500.4438, what form and amount of individual coverage must be available?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.4438(1)(b) requires the insurer to make available any customary form of individual life insurance except term insurance, in an amount equal to the group life coverage at termination, and to issue it without evidence of insurability if the employee applies within the 31-day window. The conversion right protects continuity of coverage under the Michigan Insurance Code, not a fresh underwriting negotiation.
Why the other options are wrong
- A) Term insurance is expressly excluded from the forms that must be offered, and the employer does not control the amount.
- C) The insurer cannot force a single form or require underwriting; the statute mandates any customary form except term without evidence of insurability.
- D) The amount is fixed by statute at the group coverage in force at termination, and evidence of insurability is not required.
Memory hook
Anything but term, at the group amount, no medical exam.