State RegulationsMI specificDifficulty 2/5
An insurer receives an application for a universal life policy in Michigan. Under M.C.L. 500.4038, when must the insurer deliver the policy information containing the cost factors?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.C.L. 500.4038(4) through (6) require the policy information for universal life and other cost-disclosure policies to be delivered within 15 working days after the application but at least 5 days before delivery of the policy. The lead time gives the applicant the cost picture before the sale closes, which is the purpose of the cost-factor disclosure regime in the Michigan Insurance Code.
Why the other options are wrong
- B) Post-delivery disclosure defeats the statute's purpose; the information must arrive before delivery, not within 30 days after it.
- C) The 5-day requirement is a minimum lead time before delivery, not a maximum response window after application.
- D) The duty to deliver is on the insurer and is time-driven; it does not depend on a policyowner request.
Memory hook
15 working days after apply, 5 days before you buy.