State RegulationsMI specificDifficulty 2/5
An insurer intends to terminate an individual life policy for nonpayment of premium. Under Michigan law, what notice must the insurer give the policyowner before coverage ends?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.4012 requires the insurer to mail written notice to the policyowner's last known address at least 30 days before termination of coverage for nonpayment. The notice gives the policyowner a final, clearly dated warning beyond the grace period itself, so the mailing is a critical compliance step for insurers terminating coverage.
Why the other options are wrong
- A) The notice must be written and mailed by the insurer; an oral producer warning does not satisfy M.C.L. 500.4012.
- B) A written lapse notice is required; the end of the grace period alone does not excuse the mailing duty.
- D) The statutory period is 30 days, not 60, and certified delivery is not required — mailing to the last known address suffices.
Memory hook
Written, mailed, last known address, 30 days before it ends.