State RegulationsMI specificDifficulty 2/5
A Michigan policyowner applies to reinstate an individual life policy that lapsed for nonpayment within the statutory window. Under Michigan law, what must the policyowner provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.4028 conditions reinstatement of a lapsed individual life policy on evidence of insurability satisfactory to the insurer together with payment of the arrears and interest. Reinstatement restores the original contract rather than issuing new coverage, which is why insurability evidence replaces a fresh application. Insurers may decline reinstatement if insurability is not demonstrated.
Why the other options are wrong
- A) Paying the arrears alone is insufficient; evidence of insurability is also required (M.C.L. 500.4028).
- B) Reinstatement revives the original policy; it does not require a new application at the current age.
- C) A producer has no authority to waive statutory reinstatement requirements.
Memory hook
Reinstate = prove insurable + arrears + interest.