State RegulationsMI specificDifficulty 1/5
A Michigan resident wants to insure the life of a business associate for $10,000 for his own benefit. Under M.C.L. 500.2211, what is required?
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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 before one person may insure another person's life for the applicant's own benefit when the policy or certificate is for $10,000 or more. A signature on the application constitutes that consent. The rule in the Michigan Insurance Code prevents speculative wagering on another person's life.
Why the other options are wrong
- A) The business relationship does not remove the consent requirement; policies of $10,000 or more need the insured's written consent.
- B) Verbal consent does not satisfy the statute; the consent must be written, and the insured's signature on the application is the accepted form.
- C) DIFS does not approve individual applications; the consent requirement runs between the applicant and the insured under the Michigan Insurance Code.
Memory hook
$10,000 or more? Get it in writing — the signature counts.