State RegulationsMI specificDifficulty 1/5
A Lansing policyowner misses the premium due on her individual life policy after the first policy year. Under Michigan law, what grace period applies before the policy lapses for nonpayment?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Michigan's individual life grace period is 1 month for every premium after the first policy year — not 30 days and not 31 days (M.C.L. 500.4012). During the grace period coverage continues in force, and if the insured dies the overdue premium may be deducted from the settlement. Producers should teach clients that the statute states the period as 1 month, which can be a few days more or less than a fixed day count.
Why the other options are wrong
- B) 30 days is a common misreading; Michigan's statute states 1 month for individual life policies (M.C.L. 500.4012).
- C) 31 days is also wrong; the statutory grace period is stated as 1 month, not a fixed day count.
- D) 7 days is far too short and belongs to weekly-premium-mode disability policies, not individual life insurance.
Memory hook
Michigan life grace = one month, exactly as written.