State RegulationsMI specificDifficulty 3/5
Under Michigan's incontestability rule for individual life policies, how are optional riders such as accidental death and dismemberment benefits treated?
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 D is correct
M.C.L. 500.4014 sets the 2-year contestable period for the base policy but expressly permits optional disability and accidental death and dismemberment riders to carry their own incontestability limits. A rider's contestable period may therefore differ from the base policy's, and producers should check each rider's wording when explaining to clients when benefits become secure.
Why the other options are wrong
- A) No permanent contestability is allowed; the rider, like the base policy, is subject to a fixed limit that may be its own.
- B) The statute does not impose a 3-year limit on riders; it simply allows riders to carry their own limits.
- C) Riders are not barred from having incontestability provisions; they may define their own limits.
Memory hook
Base policy 2 years; riders can keep their own clock.