State RegulationsMI specificDifficulty 2/5
A Michigan individual life policy limits the insurer's liability for deaths sustained while the insured is riding in an aircraft. How does Michigan law treat such a limitation?
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 B is correct
M.C.L. 500.4042 permits Michigan individual life policies to limit the insurer's liability for death from aviation or military service, but the limitation cannot be applied to supplementary accidental-death benefits, and in industrial policies any payment must at least equal the reserve. So the base death benefit may be limited for aviation death, while an accidental-death supplement may not be.
Why the other options are wrong
- A) Michigan expressly permits aviation and military service limitations; they are not prohibited outright.
- C) No DIFS prior-approval requirement attaches to including a permissible aviation limitation in the policy form.
- D) The limitation is a feature of individual policies under M.C.L. 500.4042; the individual-versus-group distinction in this option is backwards.
Memory hook
Cap the aviation risk if you like — never the AD&D rider.