State RegulationsMI specificDifficulty 2/5
A Grand Rapids applicant receives the required universal life policy information, and the insurer delivers the policy sooner than 5 days after she received that information. What free-look period applies under M.C.L. 500.4038?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under M.C.L. 500.4038(4)-(6), when a universal life policy is delivered sooner than 5 days after the policy information was delivered, the free-look period extends to 15 days. Michigan treats the compressed interval between the cost disclosure and the policy as reducing the applicant's study time, so the statute lengthens the examination period to compensate. The same section guarantees direct-response policies at least 10 days for an unconditional refund, showing that the free-look length in Michigan depends on how the disclosure and delivery were actually handled.
Why the other options are wrong
- A) 5 days is the minimum interval between the policy information and delivery, not the free-look period that results from compressing it.
- B) The standard 10-day free look is extended in this situation precisely because the applicant got less separation between disclosure and delivery.
- C) 31 days is the group life conversion window under M.C.L. 500.4438(1)(b) and has nothing to do with the universal life free look.
Memory hook
Info and delivery too close? The free look grows to 15.