State RegulationsMI specificDifficulty 1/5
Under Michigan law, when are premiums for an individual life insurance policy payable?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.4010 provides that premiums on individual life policies are payable in advance, either at the insurer's home office or to an agent of the insurer upon delivery of a signed receipt. Paying in advance ensures coverage is funded before the period it protects, and the signed-receipt rule gives the policyowner proof of payment when paying a producer.
Why the other options are wrong
- A) Michigan requires advance payment; arrears billing is not the statutory rule for individual life policies.
- B) Payment to an agent upon delivery of a signed receipt is expressly permitted; the home office is not the only place to pay.
- D) The due dates are set by the contract, not chosen freely by the policyowner after coverage begins.
Memory hook
Pay first, get a signed receipt.