State RegulationsMI specificDifficulty 2/5
A Traverse City policyowner says the producing agent orally promised to waive a policy provision after the policy was issued. Under Michigan law, what is required to validly modify or waive a provision of the policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Insurance Code of 1956 (M.C.L. 500.4014 and the policy-provisions requirements of Chapter 40), modifications and waivers of an individual life policy's terms may be made only by an executive officer of the insurer and only in writing. A Michigan producer has no authority to alter contract terms orally, so the policyowner's reliance on a verbal promise creates no contractual rights.
Why the other options are wrong
- A) A producer's verbal promise is not binding; Michigan law permits changes only by executive officer action in writing.
- C) The policyowner's written request does not itself modify the contract; the change must come from the insurer's executive officer in writing.
- D) DIFS does not approve individual policy modifications; control rests with the insurer's executive officers under the Michigan Insurance Code.
Memory hook
No agent can waive — officer in writing or it never happened.