A Flint employee dies during the 31-day group conversion window, without having applied to convert to an individual policy. Under M.C.L. 500.4438, what does his beneficiary receive?

Why A is correct

M.C.L. 500.4438(1)(b) provides that if the insured dies during the conversion window, the amount payable is the group life benefit that the group coverage provided at termination. The statute treats the conversion right as preserving the group protection throughout the window, so the beneficiary is not penalized because the insured had not yet elected an individual policy. This closing safeguard ensures the 31-day period functions as genuine continued protection rather than a paperwork trap.

Why the other options are wrong

• B) The statute expressly preserves the group benefit for a death during the window, so the beneficiary does not lose coverage merely because no individual policy was issued.
• C) Conversion is not automatic; the insured must apply to convert, and a death in the window is paid as the group benefit.
• D) No premium-refund remedy applies to a death during the conversion window under M.C.L. 500.4438.

Memory hook

Dies in the window? The group benefit still pays.