State RegulationsMI specificDifficulty 2/5
While applying for an individual life policy in Michigan, an applicant made statements about her medical history. How does Michigan law treat these statements?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
M.C.L. 500.4016 provides that statements in the application are representations, not warranties. Because they are representations rather than warranties, the insurer may not avoid the policy on the basis of the insured's statements unless a copy of the written application is attached to the policy, consistent with the entire-contract requirement of M.C.L. 500.4014. This protects insureds from disputes over alleged unrecorded statements.
Why the other options are wrong
- A) Michigan rejects the warranty treatment; an inaccuracy does not automatically void the policy (M.C.L. 500.4016).
- B) Application statements are not meaningless; a false statement can still be used within the contestable period if the application is attached.
- C) The producer has no authority to alter or correct application statements after delivery; only the attached written application counts.
Memory hook
Representations, not warranties — no attached application, no avoidance.