State RegulationsMI specificDifficulty 1/5
Under Michigan law, for how long after issue may an insurer contest an individual life policy on the ground of misstatements in the application?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.4014 makes an individual life policy incontestable after 2 years from its policy date, except for non-payment of premium and certain wartime military-service violations. After the 2-year contestable period, misstatements in the application can no longer be used to avoid the policy, giving beneficiaries durable security in the coverage.
Why the other options are wrong
- A) 3 years is the life reinstatement window, not the contestable period; the contest period is 2 years.
- C) 1 year understates the statutory period; the policy remains contestable for 2 years.
- D) 6 months is far shorter than the statute allows; the contestable period is 2 years from the policy date.
Memory hook
Two years and the misstatements are locked out.