State RegulationsMI specificDifficulty 1/5
Under Michigan law, when must an individual life policy provide for settlement of a death claim after the insurer receives due proof of death?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.4030 requires life policies to provide for settlement of death claims upon receipt of due proof of death, or not later than 2 months after such receipt. The two-step formulation matters: payment is due as soon as proof is complete, and the 2-month mark is the outside limit. A beneficiary holding due proof can measure the insurer's obligation from the day the proof was received.
Why the other options are wrong
- A) Telephone notification is not due proof of death; the statute keys the obligation to receipt of due proof, with a 2-month backstop.
- B) The 15-day deadline governs furnishing claim forms in disability claims under M.C.L. 500.3413, not life death-claim settlement under M.C.L. 500.4030.
- D) No policy-year rule exists; M.C.L. 500.4030 measures the 2-month limit from receipt of due proof of death, not the policy year.
Memory hook
Due proof in, money out — 2 months is the ceiling.