State RegulationsMI specificDifficulty 1/5
Under Michigan law, a universal life policy is distinguished from traditional life insurance because it:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.4001 and M.C.L. 500.4037 define universal life insurance and require the policy to separately identify the interest credited, the mortality charges, and the expense charges. This unbundled structure lets the policyowner see how cash value builds and is the defining feature that separates universal life from traditional bundled products under the Michigan Insurance Code.
Why the other options are wrong
- A) Universal life cash value varies with separately credited interest and charges; a permanently fixed cash value describes traditional whole life, not universal life.
- B) Universal life is known for premium flexibility; the statute does not prohibit premium changes.
- C) Dividends from a participating fund describe participating whole life; universal life is defined by separately identified interest credits and charges.
Memory hook
Universal life = unbundled: interest, mortality, expense shown apart.