State RegulationsMI specificDifficulty 1/5
An individual life policy in Michigan enters its second policy year, and the monthly premium is overdue. What grace period does Michigan law require the insurer to give before the policy lapses for nonpayment?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.4012 grants a grace period of 1 month for every premium after the first policy year on a Michigan individual life policy. Michigan deliberately uses the phrase 1 month rather than 30 or 31 days; during grace the policy stays fully in force, although the insurer may carry an interest charge on the overdue premium.
Why the other options are wrong
- A) 31 days is a common misreading; Michigan's life grace period is expressed as 1 month, not a fixed day count.
- B) 30 days is also wrong for the same reason — M.C.L. 500.4012 says the grace period is 1 month after the first policy year.
- D) 7 days is a short weekly grace figure that applies elsewhere in Michigan law, not to the individual life grace period.
Memory hook
Life grace is 1 month — never 30, never 31 days.